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NRW seeks fees hike to cover inspection costs

A substantial increase in fees and charges levied by the environmental regulator for Wales – Natural Resources Wales – is proposed in a consultation launched today (10 October).

The new fees regime would reduce public funding for inspections, reasons Natural Resources Wales

Such is the proposed increase in some fees in the face of cost of living pressures, that NRW says it appreciates the impact on some businesses. Some new charges are also likely to be introduced with the regulator aiming to recover all costs of inspection.

Cost increases from April next year, for example, will see new applications for Standard Rules for Low Impact Installation rise in cost from £1,669 to £4,300. Part transfers of bespoke permits which currently cost £7,631 will cost from between £5,085 to almost double at £14,211.

The NRW explains that it plans to update the charges for some its permits and licences, so that they “work better for business and the environment and to reduce the reliance on the taxpayer”.

The regulator says this is the largest review of its regulatory fees and charges since the organisation was established in 2013.

In a statement, it said: “The current charges, which include permitting and ongoing compliance and monitoring no longer reflect the full costs of delivering the services, meaning taxpayer funds have been used to fill the deficit.”

NRW explained that: “Under proposals laid out in the consultation, charge-payers pay for the full services they use, leading to a better-managed environment for current and future generations. The review of fees and charges has considered all NRW regulatory functions – including those activities not historically charged for.”

Following engagement across a range of sectors, the consultation sets out proposals to make changes to a number of charging schemes associated with applications for new and amended permits.

Pending approval from Welsh Ministers, new charges will be introduced from April 2023 for:

  • Industry regulation
  • Site based waste
  • Water quality
  • Water resources
  • Reservoir compliance.
  • Introduction of species licencing charges

Annual

NRW said it has also reviewed its annual subsistence fees, which primarily cover the fees for compliance monitoring, to ensure future inflationary pressures are managed effectively.

“If the new charges and fees are implemented, NRW will be able to invest more in its regulatory service to face the challenges of the climate and nature emergencies.”

Charge-payers

Nadia De Longhi, head of regulation & permitting regulation at NRW said: “We have taken this step to review the charges we set for our regulatory services to ensure they are more closely linked to the actual cost of delivering these activities and to ensure charge-payers, not the public, bear the expense.

We want to recover all of the costs of our regulation

– Nadia De Longhi, Natural Resources Wales

“We appreciate the financial impact our charging proposals might have on some businesses, especially given the wider cost of living pressures. While some of our permitting charges will be new, others have not been reviewed since NRW was established – or even long before that. The new charges will reflect the amount of regulatory effort actually needed to consider each application and, as a result, some individual charges will increase significantly, while others will decrease.”

Ms De Longhi added: “We want to recover all of the costs of our regulation so that we can reinvest resources in more compliance activity and in preventing pollution happening in the first place. The outcome should be a fairer and more transparent charging system which will result in more effective protection and improvement of our natural environment.”

Consultation until 6 January

The consultation on the proposed changes for new permitting charge applications and annual review of subsistence charge balances will run for 12 weeks, closing on Friday 6 January 2023. The proposed charges will be introduced in April 2023 subject to Ministerial approval. You can respond to the consultation HERE, full link:  https://ymgynghori.cyfoethnaturiol.cymru/sroc/strategic-review-of-charging/

 

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