1. In-depth Assessment economic analysis - summary of results SCG meeting 11 March Anita Payne, Unit D.2, DG Environment, European Commission

2. Outline Overview of In-depth Assessment project Summary of results
Next Steps

3. Overview of In-depth Assessment - Background
Announced in 2007 WFD Implementation report
Carried out by a consortium of consultants
Large, complex task
Faced a number of challenges (eg methodological)
Progress reports provided to SCG in May and Nov 2008

4. Purpose of assessment
To follow up on issues identified in 2007 WFD Implementation report
Inform the development of the reporting format for first RBMPs
Provide information on how to improve implementation of economic tools in WFD
Inform the development of compliance checking approach

5. In-depth assessment – economic analysis Scope of Assessment
All relevant economic issues were analysed :
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
Information base for making judgements on cost effectiveness of measures
Transboundary activity (eg data collection, cooperation) was considered for each of the elements above.
Notes for the Speaker:
More information on the Directive, the implementation process and also the guidance documents are available on the internet.

6. Limitations, lessons learned
solely focussed on Art.5 reports. It does not take account of work undertaken since these reports were published.
focussed on whether a particular issue (eg incentive pricing, PPP) was included in the report. A detailed assessment of the quality of how the issue was treated was outside the scope. Future assessments will need to consider how the quality of the economic analysis can be assessed.
No account was taken of the horizontal linkages between the economic elements of WFD. Each issue was considered separately. Important linkages may have been over-looked.

7. SCG paper - Summary of results
Expands on the emerging findings presented to SCG in May 2008
SCG paper sets out the findings and recommendations for each particular issue covered in the assessment.
Where possible/relevant, the economic reporting sheets have taken account of the results of the in-depth assessment.

8. take note of the results of the in-depth assessment
Next Steps
SCG is invited to:
take note of the results of the in-depth assessment
consider the next steps in the context of the development of the CIS work programme for
Comments welcome – in particular regarding whether it would be useful to hold a workshop to discuss WFD economics – as proposed by Water Directors
Notes for the Speaker:
More information on the Directive, the implementation process and also the guidance documents are available on the internet.

9. For information – Commission study on water pricing
Commission has launched a study which is reviewing available draft RBMPs in the context of the implementation of article 9.
The study will inform the Commission’s approach to compliance checking whilst also considering water pricing in the wider policy context of water scarcity and droughts and climate change adaptation.
Where information regarding Art.9 is not available in draft RBMPs, the consultants (Entec) may contact Member States to determine if any information is available.