WRITTEN QUESTION P-2918/01

by Giovanni Pittella (PSE) to the Commission

(17 October 2001)

Subject: The price of water as a result of the Spanish national plan for water resources

Spain recently approved a national plan for water resources in law 10/2001 of 5 July 2001.

Has the Commission ascertained whether this law respects the provisions of the Framework Directive on water, in particular Article 9, which states that the Member States shall take account of a policy to recover the real costs of water in order to ensure its efficient use?

Does it not consider that the application of this law will in effect constitute a concealed price subsidy for water used in agriculture and tourism in certain Spanish regions and hence a case of unfair competition vis-à-vis the other regions of Europe?

Answer given by Mrs Wallström on behalf of the Commission

(3 December 2001)

Spain has recently approved a national plan for water resources in law 10/2001 of 5 July 2001. The main objective of this national plan is to reallocate surface water resources within Spain to areas that are facing and will face in the future severe water shortage.

The Commission is currently looking with great attention into the links and coherence between the National Hydrological Plan and the Water Framework Directive(1). On issues linked to water pricing and charging, the Water Framework Directive effectively includes specific provisions on water charging, incentive pricing and cost-recovery. Its Article 9 specifies that: Member States shall account of the principle of recovery of the costs of water services, including environmental and resource costs, having regards to the economic analysis conducted according to Annex III, and in accordance in particular with the polluter pays principle.

The same article also put obligations on Member States to ensure by 2010 that water-pricing policies provide adequate incentives to efficient water use and ensure a fair contribution of water uses (disaggregated into at least industry, households and agriculture) to the recovery of the costs of water services. In deciding levels of cost recovery, social, economic and environmental effects of the recovery as well as the geographic and climatic conditions of the region affected may be considered.

With respect to timing, it is too early to assess on the basis of the National Hydrological Plan only whether Spain comply with Article 9 and its incentive pricing and cost recovery requirements. Deadline for compliance with these requirements is 2010. And Spain has up to December 2003 to transpose the Water Framework Directive into national legislation.

It will be possible then to make a first assessment on whether water services pricing, including services provided in the context of the National Hydrological Plan, and main water uses as defined above, will eventually comply with the requirements of the Water Framework Directive, and do not present a case of unfair competition vis-à-vis the other regions of Europe. The economic analysis of water uses required under Article 5 and Annex III of the Water Framework Directive will provide some basic information for this assessment.

(1) Directive 2000/60/EC of the Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy, OJ L 327, 22.12.2000.