Water-Value

Compensation for the Revocation or Modification of Water Abstraction Licenses

Since its advent in the 1960s, the current abstraction regulations are being updated and amended. Critically if you are an abstraction license holder in a water stressed location changes bought in under section 27 of the Water Act 2003 may mean license revocation could occur without compensation. This may deprive many of water resources vital for business.

Under this provision, where a licence, that is not a time limited license, is varied or revoked on, or after, 15 July 2012, no compensation will be payable where the Secretary of State is satisfied that the grounds for varying or revoking the licence is to protect the environment from ‘serious damage’. Defra undertook a consultation on the definition and substantiation of serious damage.

Click on the link below to read our full briefing note on this topic. 

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