S.L. 549.100 Art. 10Recovery of costs for water services.

(1) (a)The competent authority shall take account of the principle of recovery of the costs of water services, including environmental and resource costs, having regard to the economic analysis conducted according to Schedule III, and in accordance in particular with the polluter pays principle.

(b) The competent authority shall ensure by 2010:

(i) that water-pricing policies provide adequate incentives for users to use water resources efficiently, and thereby contribute to the environmental objectives of these regulations,

(ii) an adequate contribution of the different water uses, disaggregated into at least industry, households and agriculture, to the recovery of the costs of water services, based on the economic analysis conducted according to Schedule III and taking account of the polluter pays principle.

(c) The Minister responsible for resources and the Minister responsible for the environment may give specific directions to the respective competent authority on the carrying out of the obligations imposed on it by paragraphs (a) and (b), having regard to social, environmental and economic effects of the recovery as well as the geographic and climatic conditions of the region or regions affected.

(2) The competent authority shall report in the water catchment management plans on the planned steps towards implementing sub-regulation (1). Which steps will contribute to achieving the environmental objectives of these regulations and on the contribution made by the various water uses to the recovery of the costs of water services.

(3) Nothing in this regulation shall prevent the funding of particular preventive or remedial measures in order to achieve the objectives of these regulations.

(4) The competent authority shall not be in breach of these regulations if it decides in accordance with established practices not to apply paragraph (b) of sub-regulation (1), and for that purpose the relevant provisions of sub-regulation (2), for a given water-use activity, where this does not compromise the purposes and the achievement of the objectives of these regulations. The competent authority shall report the reasons for not fully applying said provisions in the water catchment management plans.