If you hold a water abstraction licence which authorises abstraction for spray or trickle irrigation, you may have a Two Part Tariff (TPT) charge arrangement.
A TPT charge arrangement, following an application from a licence holder, can on agreement by the Environment Agency be applied to the annual charge for a water abstraction licence authorising abstraction for the purpose of spray or trickle irrigation.
A TPT charge arrangement cannot be applied to other purposes or where a TPT purpose shares an aggregate quantity with a non TPT purpose.
A TPT charge arrangement means the annual charge for a licence is calculated in two parts.
- A first part charge. The first part charge is 50% of the calculated annual charge, which is based on the quantity authorised to be abstracted under a licence, and payable in advance. The first part charge is billed at the time of annual billing.
- A second part charge up to a maximum of 50% of the calculated annual charge. The second part charge is payable in arrears and will usually be billed in the late summer/early autumn of the financial year following the financial year the charge concerns.
The second part charge is calculated based on the quantity of water reported to the Environment Agency as abstracted (your ‘abstraction return’).
You should still submit a return even if you haven’t abstracted any water (this is a ‘nil return’). If you report a ‘nil’ return you will only receive a first part charge as the second part charge is £0 if no water is abstracted.
If you do not submit your return with 28 days of receiving the notification from the Environment Agency asking you to report your return the second part charge is calculated based on the full authorised annual quantity specified by your licence as having been abstracted.
This means you will have to pay the full annual charge for the licence even if you haven’t abstracted any water.
Together the first part charge and second part charge make up the annual charge for a licence with a TPT charge arrangement.
If you have a TPT charge arrangement you will be able to identify the first part charge and second part charge for your licence from the transaction description printed on your invoice.
The description for a first part charge has the prefix ‘Two-part tariff first part water abstraction charge’ and for the second part charge ‘Two-part tariff second part water abstraction charge’.
If the quantities authorised to be abstracted under your licence are restricted by a ‘licence to licence’ aggregate quantity condition the annual charge is calculated with reference to the aggregate authorised quantity and the quantity reported as abstracted across the licences in the aggregate group.
If you are unsure whether you have a TPT charge arrangement please contact the Environment Agency, quoting your licence number in all correspondence, at WR_Systems_Team@environment-agency.gov.uk.