Questions and answers
Why does SEPA have a charging scheme?
We must recover the costs of our work from those we regulate.
Currently charges recover approximately half of our costs. The
remainder is provided by the Scottish Government.
Why do I have to pay an application
fee?
The application fee is a one-off charge and
covers the costs of processing your application.
What is a subsistence charge?
A
subsistence charge is an annual bill. You have to pay subsistence
charges if you hold a SEPA licence. Subsistence charges are sent
out every year to cover SEPA’s ongoing work in regulation and
environmental monitoring. SEPA bills twice a year, in April and
October, for licences under the Controlled Activities
Regulations.
Who is affected by the charges?
All
industry sectors that discharge, abstract or impound water above
certain thresholds have to pay subsistence charges whilst holding a
SEPA licence. This includes distilleries, fish farms, hydro power
schemes and other industry. Engineering licences could require
subsistence charges for up to five years, depending on the activity
being undertaken. Other activities for which licence holders pay
subsistence charges include waste activities, emissions to air and
land and for the use and disposal of radioactive materials.
Are there any exceptions to charges?
We do
not propose to have annual charges for small scale activities. For
example, we will not normally require annual charges for
abstractions less than 50 cubic metres per day (the average water
use of 250 people). We will not normally charge for small sewage
discharges from less than 15 people. Similarly, we will not charge
for small hydropower schemes which are for domestic or communal
use; nor will we charge operators of small dams or weirs.
We do not think that people who undertake work to directly
improve the environment should be subject to charges. Consequently,
we will not impose annual charges upon activities such as river
restoration or wetland creation.
Why has SEPA extended charges to new
operators?
The Controlled Activities Regulations mean that SEPA is responsible
for regulating the construction and operation of dams, abstraction
of water and engineering work affecting rivers and lochs. This is
in addition to SEPA’s responsibility for controlling pollution from
discharges to the water environment.
Why are these additional controls needed?
In order to deliver improvements in the water environment SEPA
needs to be able to tackle the main causes of environmental harm.
Forty-five per cent of Scotland’s water environment is potentially
damaged by human activity; only 10% of this damage is caused by
polluting discharges. The rest of the impacts are associated with
diffuse pollution, dams, abstractions and engineering work. These
controls will enable us to deliver thousands of kilometres of
improvements providing benefits for fishing, recreation and
commercial use of high quality water.
How was the charging scheme designed?
SEPA
spent two years working with a group of stakeholders who
contributed to the design of the charging scheme. As far as SEPA is
aware, this is the first time that a public body has designed its
charging scheme with the involvement of those affected by it.
How is SEPA’s charging scheme agreed?
SEPA consulted on the Water Environment Charging scheme and
responses to it were considered by ministers who advised SEPA of
any changes they wished us to make to the proposed scheme.
Ministers approved the final scheme on 30 March 2006.
How does SEPA ensure that it spends its resources
effectively and that the charging scheme figures are fair and
correct?
The additional resources needed to deliver these new
responsibilities have been subject to rigorous review by
stakeholders. SEPA’s proposals and figures are subject to external
audit and public consultation prior to final approval by Scottish
ministers. This ensures that the calculations used to project the
resources needed are correct. To ensure we are only delivering what
is required, the Scottish Government also reviews our overall
performance and objectives.
What do we use the money for?
About 60% of the resources will be used to monitor the condition of
the water environment. The remaining 40% will be used to support
our regulatory responsibilities.
- Environmental monitoring: SEPA monitors environments associated
with, and affected by, regulated activities. We do this by:
* managing the extent to which rivers are subject to damage by
pollution, abstraction and engineering works;
* monitoring the flows of groundwater, rivers and levels in
lochs;
* assessing ecological conditions at 1,350 sites across
Scotland, including data on fish populations;
* using all this information to report on the state of
Scotland’s environment.
- Regulation: SEPA is responsible for ensuring that the
controlled activities do not cause harm to the water environment
and to ensure that new activities do not compromise the interests
of other water users. We do this by undertaking the following
activities:
* setting conditions in licences to improve the way
discharges, abstractions, dams and engineering works are
managed;
* carrying out site visits to check compliance with conditions
as specified in the licence;
* looking at data returns from licence holders and assessing
whether licences are being complied with;
* checking areas where over-abstraction has taken place, to
assess how to reduce the impacts (this involves promoting good
water use practice and phasing abstractions so that they do not all
occur at the same time);
* reviewing licences to change conditions so that the water
environment does not suffer;
* taking enforcement action against operators who do not have
a licence or who operate outside the terms of their licence.
How does the charging scheme allocate costs between
operators?
SEPA has worked hard to ensure that the charges reflect the risk of
harm to the environment. For example, charges are lower for smaller
volume abstractions and abstractions that return water to the
environment (eg from a fish farm), compared with activities where
much of the water used is not returned (eg water supply).
Similarly, we charge more for engineering work that involves
dredging a kilometre of river, compared to erosion control work on
half a kilometre of river bank. We consider that this is a fair way
of allocating costs.
Why is a much bigger farm close to me charged less? And
how do you arrive at the figure on my bill?
The charge is based on the level of environmental risk associated
with the activity. For example, if you abstract water you pay more
if you a) abstract more, b) abstract in the summer or c) you don’t
return the water.
Is the subsistence charge worked out like a water meter
in a house?
No, we don’t charge just by the volume used. We modify the charge
depending upon the level of risk posed to the environment.
Why has my bill increased from last year?
SEPA recovers its costs through charging schemes. The 2005
consultation on the water environment charging scheme outlined
SEPA's proposal to progressively introduce the new regime over the
first two years. As a result, charges were increased in 2007/08 to
account for the additional work involved in regulation and
environmental monitoring of discharges, abstractions, impoundments
and engineering activities. Charge increases in each of the next
two years will be less than the rate of inflation.
Is the charge going to go up each year?
As with other industries or businesses SEPA regularly reviews its
costs and charges. Any proposed increases above the Retail Price
Index (RPI) increase must be subject to public consultation and
require the approval of Scottish ministers. However, the good news
is that we are currently anticipating increases for the next two
years (2008/09 and 2009/10) will be below the annual RPI
increase.
If I decide not to pay my bill, what will the
repercussions be?
It is a legal requirement for you to pay; if you choose not to do
so then SEPA could seek payment through the courts. In addition
your licence to carry out your activity will not be valid.
Do I have to do anything else?
You may be asked to send in returns on how much water you use, but
only if this is specified in your licence.
What happens if the estimated amount of water abstracted
differs from the licensed figures?
If you need to abstract more water, you will have to apply to
review your licence so that more water can be abstracted. It is
illegal to abstract more than indicated on the licence and SEPA
could take enforcement action against you.
If you are abstracting less than the licensed volume then a
licence review may reduce your charges. We would advise discussing
this with your local SEPA office.
I paid for an abstraction licence when they were
discounted but I am not planning to use it, this year or next; is
there still a subsistence charge?
There will be no subsistence charges to pay for next year if you
write and tell us in advance (write between December and February
each year. If you fail to notify us during this period then charges
will be invoiced and due. We will confirm receipt and acceptance of
your notification, however, if we do not confirm acceptance before
the end of February please contact us urgently. It will not be
possible to offer this exemption if applications are not lodged by
the end of February. This exemption is available each year, but
must be renewed annually.
How long does my licence last if I don’t use
it?
There is no time limit on the licence, but if you do not use a
licence and other people need to abstract the water then the
licence could be revoked.
Queries:
If you have any questions about your bill, please contact your
local SEPA office.