The System of Water Charges in France

The Policy in Brief

Economic Instrument: Pollution and use charges, in tandem with an offset subsidy for waste water treatment.

Problems: Water pollution, and water resources being taken for granted by citizens.

Goal: To make polluters pay for water pollution, and to provide financial aid for those treating waste water.

Description: A system of water charges and offset subsidies established in the sixties, which has become the backbone of water pollution control in France. It enjoys both wide acceptance and impressive results.

Administering Institutions: River Basin Agencies.

Key Stakeholders: River Basin Agencies, Water Commission, all water users and polluters.

An Overview

The French system of water management, developed in the sixties, is based on the polluter pays principle and its success is now well-established. France's Water Act of 1964 (number 64/1245) created a framework for water charges to be administered by public establishments at the level of river basins. A subsequent decree of 1966 (number 66/700) established that charges may be levied on public or private groups or individuals if they:

• Contribute to the deterioration of water quality;
• Extract water for use from natural sources; or
• Alter a river basin's aquatic environment.

Subsidies for measures aimed at improving or safeguarding water quality may also be granted to private or public concerns. A compensation system, known as the subsidy for waste water treatment, was introduced to offset the water pollution charge for those persons or bodies who treat waste water before discharging it into rivers and lakes. This measure was intended to act as an economic incentive for polluters to take steps to avoid the deterioration of water quality.

The total sum of the water charges to be levied and collected by each river basin agency is set out in a 'pluri-annual intervention program' geared toward developing water resources and reducing pollution. The program establishes all expenditures to be met by each agency within a fixed time frame, that is, for the duration of the intervention program. The amount is fixed according to the expenditure required by each river basin agency to achieve the priority objectives and targets set for the period in question. The water charges system is managed by the six water basin agencies and covers the whole of France. The water basin agencies establish the water charges to be collected based on a compulsory declaration made to them by all persons or bodies liable for the charge. The water charges can be divided into two groups - pollution and use charges.

Pollution charges are levied each year on the basis of the average daily quantity of pollution generated during the month of maximum discharge. Several pollutants are taken into account in assessing domestic and industrial water pollution levels, including suspended solids, oxidizable substances and nitrogen. For industrial establishments the pollution generated is either measured or estimated at a flat rate. The pollution charge is collected directly by the River Basin Agencies from organizations generating more pollution than would normally be generated by 400 average inhabitants. Pollution charges for domestic and assimilated waste are added to the price of water calculated in each urban or rural district.

Use charges were implemented by the River Basin Agencies for the purpose of quantitative management of water resources. Public and private bodies or individuals are liable to pay this charge for extracting water or altering the aquatic environment.

Some Further Reading

Agence de l'Eau Artois-Picardie (1987). Ve Programme d'interventions 1987-1991.

Agence de l'Eau Artois-Picardie (1992). VIe Programme d'interventions 1992-1996.

Agence de l'Eau Seine-Normandie (1992). VIe Programme d'interventions 1992-1996.

Minist�re de l'environnement/les Agences de l'Eau (October, 1993). Rapport d'�vacuation des VI�mes programmes des agences de l'eau synth�se nationale.

Nicolazo, Jean Lo�c (1989). Les agences de l'eau, Pierre Johanet & Fils, Paris.

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