5b - In-depth Assessment economic analysis - progress report SCG meeting 5 November 2008 Anita Payne, Unit D.2, DG Environment, European Commission

Outline Brief overview of In-depth Assessment project Progress Report Proposed Next Steps

In-depth assessment – economic analysis Summary All relevant economic issues to be analysed and reported: 1. Definition of water services and consideration of water uses 2. Level of cost recovery/which costs are included and how 2a. Sub-topic: Calculation of cost recovery 2b Sub-topic: Environmental and resource costs 2c Sub-topic: Incentive pricing 3. Baseline scenario 4. Information base for making judgements on cost effectiveness of measures Notes for the Speaker: More information on the Directive, the implementation process and also the guidance documents are available on the internet.

Progress Report Summary of emerging conclusions provided at SCG meeting 14-15 May 2008 Project completion has been delayed Will be completed by end 2008

Proposed Next Steps I COM will prepare a summary document outlining the findings of the in depth assessment. This will be circulated for comment in early 2009 prior to a discussion at the next SCG Notes for the Speaker: More information on the Directive, the implementation process and also the guidance documents are available on the internet.

Proposed Next Steps II Workshop to communicate the results of the in-depth assessment was proposed and discussed at Water Directors in June 2008. COM proposal: Wait for the finalisation of the Summary report in early 2009 to determine if a workshop is needed.