The EA conduct this annual review to ensure it is recovering the costs of its main regulatory services from the companies it regulates. This consultation is not as far reaching as its ‘ Unified Charging Framework’ consultation that EEF responded to in April 2007.
The EA is required by the Secretary of State for Environment to consult with stakeholders before making any changes to schemes. Our response will form part of a submission to DEFRA for approval in consultation with the Welsh Assembly Government and HM Treasury.
Proposed Changes
The document sets out the Agency’s proposals for the following charging schemes from the 1 April 2008:
- Environmental Permitting (replacing Waste Management Licensing and Pollution Prevention and Control)
- Radioactive Substances Act Regulation (RAS)
- EU Emissions Trading Scheme (EU ETS)
- Integrated Pollution Control (IPC).
The Agency is proposing to increase charges by 3.4%, although it states that ‘despite our estimate that inflation and new regulatory duties will increase our costs by 4.7%’. The proposed increase is below the current Retail Price Index of 3.8% (National Statistics, July 2007).
Additional Proposals
In addition to the increase in charges, the Agency is proposing:
- A new Environmental Permitting Charging Scheme to reflect the forthcoming Environmental Permitting Regulations;
- The release of the first stage of the Unified Charging Framework that will progressively simplify and harmonise many of our charges;
- A new lower application charge for the new SPs that are developed, which supports Modern Regulation;
- A number of other technical changes.
How your company may be affected
Although the proposed changes in charges will increase your costs, measures in the additional proposals may have the opposite effect. Members may wish to read this part of the Environment Agency's consultation paper to understand how the proposals may change the way the Agency regulates them.
EEF will be responding to this consultation and would welcome your views. The deadline for responses to the Environment Agency is 7 December 2007.