European Commission raps Malta over water pricing

The European Commission has rapped Malta for the absence of any tariffs on ground water extraction by farmers and for its failure to include "the resource and environmental costs" in water pricing structures. 

This emerges from an European Commission report on Malta's Rivers Basin Management Plan, which is a requirement of the Water Framework Directive. 

The damning report on Malta's management of water resources was published by Alternattiva Demokratika in a press conference last week.

The inclusion of "resource and environmental costs" mentioned in the report would effectively mean that the environmental costs of ground water extraction by both private individuals and by the Water Services Corporation would have to be accounted for in water bills.

By 2015, Malta must apply the Water Framework Directive which required EU Member States to take into account of the "environmental and resource costs" of groundwater extraction.

In September 2010, MaltaToday had revealed that the resources ministry was "examining a formula" to bill the Water Services' Corporation for the water it extracted from boreholes. But the additional bill was expected to "be offset against any costs incurred by the WSC to polish treated sewage effluent and the recharge of the aquifers," and cushion any impact on the price of water.

Commission sources confirmed that "resource and environmental" costs apply to both public and private extraction. Since ground water extraction contributes to the depletion of the aquifer, it has a resource cost.

The latest commission report recommends that that cost-recovery should address a broad range of water services, including ground water extraction by the agricultural sector and the treatment and discharge of waste water which is presently not accounted for in water tariffs.

"The cost recovery should be transparently presented for all relevant user sectors, and environment and resource costs should be included in the costs recovered."

It also calls on the government to submit information on the incentive function of water pricing for all water services, with the aim of ensuring an efficient use of water. "Information on how the polluter pays principle has been taken into account should be provided."

The report states that extraction from boreholes by farmers was not charged until 2010, but  refers to plans to introduce a pricing system in 2011. But the report notes that there was  no confirmation whether this took place or not. In reality, no such pricing system has been put in place.

Malta's RBMP also refers to the polluter pays principle in general.

"However it seems that environmental and resource costs have not been included in the cost recovery calculation".

The RBMP falls under the competence of two competent authorities, the Malta Resource Authority that is responsible for inland waters including groundwater and the Maltese Environment and Planning Authority that is responsible for coastal waters and protected areas.

"The co-ordination mechanisms that were in place during the preparation of the river basin management plan between the two main competent authorities are unclear as well as any coordination with other Ministerial departments," the report notes.

The report also refers to court sentence handed in December 2010 in a case instituted by the  Commission against Malta in which the Court ruled against Malta with regards to its failure to monitor the status of surface waters.

"Malta did not identify inland surface waters, did not establish a network of monitoring for them and failed to submit a summary report to the Commission. In this ruling, the Court found that even if the Maltese inland surface water bodies are small, there is a need to ensure monitoring."

The EU directive obliges Member States to ensure that surface, coastal and underground water bodies are of good quality by 2015. In its plan, Malta has requested an extension of 12 years (from 2015 to 2027) in its bid to ensure good quality status for its ground water bodies.

But in its report the Commission asked the Maltese government to justify this extension as it was not satisfied with the justification provided so far.