IMPLEMENTATION OF ARTICLE 9 Workshop on WFD-economics 19-20 June 2010 IMPLEMENTATION OF ARTICLE 9 The case of the Ebro River District

INDEX COST RECOVERY AND WATER PRICING EXEMPTIONS TO COST RECOVERY WATER FOOTPRINT

COST RECOVERY AND WATER PRICING The Ebro Basin Authority = Ebro River Basin Organization (in charge of water management within the Ebro District) Full recovery of exploitation and maintenance costs and 90% of depreciation costs Rates for the cost recovery of water storage (dams) and transportation facilities (canals). Distributed between the different types of beneficiaries (irrigation, hydroelectricity, industry, urban supply) in accordance with the expected theoretical benefit (coefficients) with the possibility to weigh those rates according to water efficiency. There are also rates applied to wastewater discharge, higher depending on the amount of pollution discharged, for the monitoring and preservation of water bodies.

COST RECOVERY AND WATER PRICING - Most of all water pricing measures are Nation wide, based on national regulations: - Water law RDL 1/2001 Royal decree 849/1986 Royal decree 907/2007 Rates and public prices law 8/1989 The Ebro Basin Authority includes in their governing and participatory bodies regional, local and users, that have their own prices tools: River basin authorities. Management and protection of water resources. Upstream services Local and regional entities (town councils and regional governments): water supply, sanitation, waste water treatment Communities of users in the case of irrigation

COST RECOVERY AND WATER PRICING - Cost recovery in urban water services: 57 % of total financial costs (Includes industrial, commercial and domestic use) Higher in distribution network, it’s been very low in wastewater treatment (large public support to wastewater treatment), but now is changing (new rates implemented lately) Cost recovery in irrigation water services: 80 % of total financial costs Higher in main infrastructures upstream, but lower in the distribution network to the field.

COST RECOVERY AND WATER PRICING - Environmental costs estimated in 6.000 M€ in the period 2010-15, as the cost of the measures to 2015 objectives. Not appropriate methodology to assess resource costs in the Ebro basin, since there are not market mechanisms for the interchange of water rights. The only proxy that can be used is the calculation made to punish illegal abstraction of water, which uses as a reference the rate of 0,079 €/m3 for the water transfer to Tarragona.

COST RECOVERY AND WATER PRICING It’s considered that at present the pricing tools already in place give adequate incentives to an efficient use of water resources. Nevertheless, there are measures to be implemented considered in the District Plan: Improvement of cost recovery in urban services Expansion of water meters in irrigation and water rates according to water consumption. The public support for modernization of irrigation techniques is on the condition of rates based on water consumption.

EXEMPTIONS TO COST RECOVERY Rural areas with risk of depopulation

EXEMPTIONS TO COST RECOVERY In connexion with the Spanish Rural Development Strategy and its classification of rural areas, there has been prepared a proposal for exemption to cost recovery in the District Plan. Indicators and criteria to select the areas where the exemption could be effective: Population density (main indicator) Ratio of people employed in agrarian related activities Family income and agrarian productivity Isolation (lack of communication facilities) Natura 2000 sites Additional criteria Other natural water related sites Cultural patrimony

EXEMPTIONS TO COST RECOVERY Classification: 1- Areas with high public support 2- Areas with limited public support 3- Areas with cost recovery

WATER FOOTPRINT OF AGROFOOD SECTOR IN THE EBRO BASIN The water footprint is an indicator of water use that includes both direct and indirect water use of a consumer or producer. The water footprint of an individual, community or business is defined as the total volume of freshwater that is used to produce the goods and services consumed by the individual or community or produced by the business WATER FOOTPRINT OF AGROFOOD SECTOR IN THE EBRO BASIN (agriculture + livestock + food industry) Population in the Ebro river district: 3.100.000 inhabitants Water consumption (direct + indirect): 3.285 Mm3 Water consumption agrofood sector to produce goods (direct + indirect): 12.644 Mm3 Water footprint in additional equivalent population: 5.800.000 inhabitants (virtual water exported to higher density populated areas)

Thank you for your attention rgalvan@chebro.es http://www.chebro.es