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4. Cost recovery
4.0.1 Approach to this section
The system for cost recovery in Scotland is different to that in England. Therefore, the Solway Tweed RBD is covered by two different cost recovery regimes and for that reason this report presents information on cost recovery in the Scottish and English parts of the RBD separately.
The information provided in the section covering the England part of the RBD is based on analysis undertaken by consultants ERM and Stone and Webster. The full report, referred to as CRIP (Cost Recovery and Incentive Pricing) is available to download from the Defra website48.
Cost recovery in Scotland has been examined through a research report commissioned from ERM to establish the extent of cost recovery in Scotland (the Operation of the Scottish Water Market49). This report highlighted the paucity of our current knowledge in this area and led to the identification of gaps requiring further investigation and further work is ongoing.
In both countries there are significant technical issues associated with quantifying environmental and opportunity (resource) costs. These are discussed more fully in the respective sections.
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