Cost Recovery for Water Services and the Polluter Pays Principle

This paper considers the general rationale for cost recovery pricing in respect

of water services and examines the specific provision that is made for this,

and related obligations, in Article 9 of the European Community Water

Framework Directive. Despite guidance drawn from the Common

Implementation Strategy, uncertainties remain, particularly with regard to the

need to recover environmental and resource costs and how account should

be taken of the polluter pays principle. Given the intractable character of

these difficulties, it is suggested that the some of the practical outcomes and

environmental benefits of implementation are speculative.