The Water Environment (Controlled Activities) Charging Scheme

Why charge? 

Forty-five per cent of Scotland’s water environment is potentially damaged by human activity, through the activities controlled by our four regulatory regimes. SEPA is required by law to operate a charging scheme, to recover the costs of regulation and associated environmental monitoring and improvement. The scheme was subject to full consultation and ministerial approval. Broadly-speaking, the charges recover approximately half of our costs and the remainder is provided by the Scottish Government.

About 60% of the money raised through charging is used in monitoring, while the remaining 40% supports our regulatory responsibilities. We carry out site visits, chemical monitoring of discharges and assessment of data to ensure that operators comply with the conditions set in the Controlled Activities Regulations (CAR). By implementing this scheme, we will be able to ensure that the environment does not deteriorate as a result of new developments, and deliver environmental improvements to the benefit of ecology habitats, amenities and commercial communities.

Activities are charged according to the level of environmental risk. In turn, environmental risk directly influences the level of assessment, inspection and monitoring that SEPA carries out in relation to a regulated activity. Charges apply and, where ongoing inspection and monitoring is required, subsistence (annual) fees may apply. These charges replaced the Control of Pollution Act and Groundwater charging schemes on 1 April 2006.

What do I need to do?

Please note: If at any point during the application process you have a query, contact your local SEPA office.

  1. First refer to the relevant chapter in the CAR Practical Guide pdf link (540k) to see if your activity requires authorisation.

  2. If your activity falls under a General Binding Rule (GBR) you will not have to do anything. If you require a registration or a licence, however, you will need to apply.

    - Application forms

  3. Use the charging scheme guidance to determine the cost of the application and to find out whether a subsistence (annual) fee applies.

  4. Use the charge calculator, found here, to determine your fee, by filling in the details of your activity. (Please note that multiple activities are eligible for a reduced application fee, which the calculator determines).

  5. If you carry out an abstraction you may be eligible for a temporary exemption. There is also a full list of all activities that do not require a charge in Annex II of the charging scheme guidance.

  6. Write down the charges in the application form and fill in all the other details. Then send it to your local SEPA office.
Regulating SEPA

At SEPA, we aim to be as open and transparent as possible about the work we do. The Water Environment Charging Scheme was therefore developed in conjunction with SEPA’s Regulatory Stakeholder Group and the Scottish Government. In 2005, we also engaged KPMG to carry out an audit review on the development of the scheme and our resource planning. A key part of this was assessing the approach we have taken for the allocation of costs across the four regimes.

To ensure executive agencies operate efficiently and effectively, the Department for Environment Food and Rural Affairs (Defra) and the Scottish Government also undertake reviews. Part of this is looking at the financial management of the agency, including the way charging schemes operate. In 2003 the (then) Scottish Executive Policy and Financial Management Review (PFMR) recommended that SEPA should compare its charges with the Environment Agency and publicise the results in a benchmarking report.

Other useful links and information