CONFIDENTIAL
XCC(93)127
High Priority Programme (HPP) by 1997, consisting of Stage I of the SSDS and the most urgently needed regional sewerage improvement schemes related to it. Furthermore, in line with the polluter pays principle, a public charging scheme was then proposed to recover, in the first instance, the capital cost of the HPP plus the operating expenses of the on-going sewage services. An injection from the Capital Investment Fund (CIF) was also proposed to enable the HPP to be constructed quickly. Members noted that a trading fund would be a convenient mechanism for receiving revenues from the charging scheme and for managing the scheme efficiently.
A
Charging Principles
5
The general principles underlying the proposed charging scheme and its structure are at Annex A. It is proposed that, with effect from August 1994, charges be levied on all water users who use sewage services, except those users referred to in paragraph 7. This will create some 1.6 million user accounts for the eight consumer categories set out in Annex A.
Trade Effluent Surcharge
6
It is also proposed that industrial and commercial discharges will be subject to a trade effluent surcharge (TES) to reflect the additional cost of reducing their more polluting effluents to the average strength of domestic sewage. Such arrangements are a feature of similar charging schemes elsewhere and industry has agreed to such a surcharge in principle.
B1
Exemption
7
Under the present water services billing system, the first 13 cubic metres of water in a four-month period are provided free of charge. This is to provide the minimum quantity of water required for health and hygiene by reference to average household size in public housing. About 17% of domestic households are using less than 13 cubic metres of water per four months and are therefore exempt from water charges. It should be noted that the Works Branch is reviewing the water tariff structure and examining the implications of abolishing this exemption from water charges. For the moment, notwithstanding the polluter pays principle, to facilitate public acceptance of sewage charges, we propose to exempt from sewage charges all householders who do not pay water charges. As a consequence, charges for other users will be higher by 1.5% to 11% [see Annex B(1)].
No comments yet.
Private notes are available after approval.