The Environment Agency is expected to take action against abstraction licences where the abstraction is adversely impacting on conservation sites, in particular those designated under European legislation. Where it needs to revoke or modify an abstraction licence, compensation is generally payable. The compensation payments form part of the cost of meeting its duty to manage water resources and will therefore be recovered via abstraction charges.
The Environment Agency is consulting on options to recover any compensation that may be payable. No decision on changes to abstraction charges will be taken until the consultation ends on 7 December and the Environment Agency has submitted its proposals to Ministers.