# CE2004084EN.01018001.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/180 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/180

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(2004/C 84 E/0220)

WRITTEN QUESTION P-0244/04

by Joan Colom i Naval (PSE) to the Commission

(27 January 2004)

Subject:   Spanish National Hydrological Plan — cost and price of water

Subject:

The water costs envisaged in Law No 10/2001 of 5 July 2003 on the Spanish National Hydrological Plan (NHP) differ significantly from the average cost estimated in independent studies such as that by the Fundación Nueva Cultura del Agua, which indicates that the average cost passed on to users will be EUR 0,45 per cubic metre of water, while the figures from the Spanish Government, which defends the economic and environmental viability of the NHP, show that cost to be EUR 0,205.

Given the inaccuracies and differences that exist between the economic studies presented by the Spanish Government and those presented by experts from other organisations, the European Commission has asked the Spanish Government to provide additional information on the price and cost of water from the Ebro transfer.

Does the Commission consider that the Spanish Government has provided justification for the cost of a cubic metre of water transferred from the Ebro being lower in Murcia or Almeria — after hundreds of kilometres and various pumping operations — than in Barcelona? Does it consider the prices and costs that appear in the NHP economic analysis to constitute covert subsidising of economic output and activities in certain Community regions, in unfair competition with those in other areas?

Answer given by Mrs Wallström on behalf of the Commission

(3 March 2004)

(3 March 2004)

With regard to the projected costs of water to be delivered by the proposed Ebro transfer, the Commission is aware of the differences in the cost projections made on the one hand by the Government of Spain and on the other hand by organisations such as the Foundation for a New Water Culture.

The Commission is also aware that the projected price of water to be paid by private users in Barcelona may be considerably higher than the price of water delivered to farmers in Almeria and Murcia. Traditionally across the EU, the price paid by individual water consumers is considerably higher than the prices paid by farmers.

Article 9 of the Water Framework Directive (Directive 2000/60/EEC of the Parliament and of the Council of 23 October 2000, establishing a framework for Community action in the field of water policy (1)) imposes upon Member States the obligation to respect the principle of cost recovery for water services, to use price incentives to encourage efficient water use and to achieve an equitable balance of the cost burden between different water users. However, in deciding their pricing arrangements, Member States may take into account social and economic considerations as well as geographic and climatic conditions.

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In December 2003, the Commission received four separate but related requests for Community funds to support the building of the infrastructure for the Ebro transfer. The Commission is currently evaluating these requests in the light of the rules and procedures which apply to the structural funds and the cohesion fund. Part of this evaluation includes an assessment of the economic and financial justification for the projects.

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(1)  OJ L 327, 22.12.2000.

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