The Environment Agency has been given Ministerial approval for its charging regime for the period 2010/2011.
NFU consultation response
During consultation on the draft charging regime at the end of last year, the NFU’s most significant concerns were with
• the level of charges for new standard waste permits that were previously notifiable exemptions (which would include composting, landspreading and on-farm AD plants and digestate storage); and
• proposals for a new charging regime for the disposal of enzyme-treated sheep dip.
Our key points were that
• Small-scale, commercial on-farm composting units would not be able to sustain the increase in charges. The level of charge being proposed to enable farmers to spread beneficial materials, such as compost, would also amount to thousands of pounds but also went against government policies which are supposed to be encouraging the addition of organic matter to farm soils.
• We were also concerned about the higher charges for on-farm Anaerobic Digestion plants despite government assurances that it is keen to encourage farmers to use on-farm inputs to reduce emissions and produce green, clean energy.
• We were also deeply concerned that the proposed charges for the new groundwater authorisation, which recognised the environmental benefit of treating sheep dip, but did not reflect the Agency’s commitment to provide a worthwhile financial incentive to farmers and could discourage farmers from treating their dip in this way.
The NFU’s full response to the Agency’s consultation proposals is available to view in the related document attached.
2010/2011 Charges
In relation to the two points above we understand that:-
• No changes have been made to the level of charges for the new standard waste permits. However, we do understand that the Agency is still looking at whether it can help reduce the cost of the charges to smaller producers.
• Because of uncertainty about the availability of the enzyme product, the Agency has withdrawn the availability of the standard permit to dispose of enzyme-treated sheep dip. This may be re-instated but otherwise the situation is that
• Existing groundwater authorisation holders will experience a 1 % uplift in annual charge (so up to £153.90 – as proposed in the consultation); and
• Farmers who do not have an existing groundwater authorisation but want a permit will have to pay £390 for a new bespoke permit and £153.90 for the annual fee (again – as proposed in the consultation).
Other aspects of the charging regime for 2010/11 that have also been agreed include:-
• A general baseline increase of 1% for all the major charging schemes; and
• An increase to Abstraction charge to a maximum of 10% of the Standard Unit Charge (SUC) and Environmental Improvement Unit Charge (EIUC) combined.
The charging regimes that fall under the Environmental Permitting Regulations (waste, IPPC & groundwater) take effect from 6th April. The abstraction charging regime takes effect from 1st April. The new charging regimes are available to view on the Agency’s website here.
NFU comment
The news that our concerns about the level of charges for various waste activities have not been addressed is obviously disappointing but we will continue to work with Agency to identify ways to reduce the cost of these charges to farmers.
On all regimes, the NFU will continue to insist that the level of charges be proportionate to the risk of the activity. Where there are environmental benefits we will also advocate that the regime provides a worthwhile financial incentive to farmers.
No comments have been made.