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The Environment Agency has increased abstraction licence charges to ensure high volume users pay more.
From April, charges will be based on the volume of water taken from the source; where it is abstracted from; and how much is then returned to the environment.
The EA said the new charging framework will secure an extra £25 million annually. This will be ringfenced to protect access to water and meet environmental challenges, including to help protect England’s sensitive habitats, such as chalk streams.
EA chief executive James Bevan called water shortages “the biggest long-term threat” to the environment, our economy and peoples’ lifestyles.
England will face significant water shortages in the future if no action is taken immediately to curb consumption. By 2050 some rivers could have up to 80% less water during the summer as population growth could lead to consumption increases of 23%.
“In the face of the climate emergency, population growth and rising demand for water, we need to ensure that all those who use water, and rely on it for their business, can continue to do so now and into the future, as well as better protecting our rivers and aquifers,” Bevan said.
“As part of this we need a system that allows us to charge fully and fairly for the services we provide to preserve water supplies and help businesses meet their needs in a sustainable way that protects the environment.”
Applications to use water for hydropower and heat pumps will be adjusted to reflect the variety of scheme sizes and cost drivers more accurately.
For non-commercial schemes that benefit the environment, such as habitat enhancement or wetland creation, there will be no changes. EA will use extra funding to digitalise the licensing system; maintain and operate infrastructure, including water transfer schemes, gauging stations, weirs and sluices; and promote a sustainable approach to abstraction.
Charges have not changed in 10 years, which the EA said meant it is not currently recovering the full costs of its water resources work.
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