Volume-based fees will encourage water conservation

THE WATER Resources Authority (WRA) has observed an increase in the applications for water abstraction licences, particularly in the southern areas of the country. In several cases, the request cannot be met because of the limited availability of resources to meet the demand at the time of the request. The WRA has recognised that the limitation in the availability of the resources is partly due to the fact that several licensed water abstractors are using less than 50 per cent of the volumes they are licensed to abstract and, as a consequence, have tied up significant volumes of water that could be effectively utilised to enhance economic growth. It is also known that in some instances, the water abstracted is not being used in the most efficient manner but is allowed to go to waste by leakage in the conveyance system.

As the agency of government responsible for the allocation, regulation, conservation, protection, and otherwise management of the country’s water resources, the WRA will impose an abstraction fee on the volume of water that is licensed for abstraction from a river, spring, or well.

This fee will provide an opportunity for abstractors to reduce the volume on their licences to reflect their actual usage and, ultimately, will free up a significant volume of water for reallocation in basins with high unmet demands for water. Abstractors will also see the need to cut their costs by being more efficient in the conveyance and usage of the water.