The practical reality for licensees in England is that the ability and capacity to continue with abstraction may be altered. or revoked from 1 January 2028.
This is due to the Environment Agency (EA) implementing a new regime for water abstraction in England under the Environment Act 2021 that will align abstraction management with river basin planning and environmental objectives.
The reforms expand the EA’s powers to vary abstraction licences to protect ecological status, meet flow requirements and respond to climate-driven scarcity.
These proposals do not currently extend to Wales.
Powers to vary licences and scope of variation
The EA may vary licences to prevent serious damage to the water environment, to secure sustainable abstraction, or to deliver its objectives under the “Water Framework Directive”.
Variations may include reduced annual or seasonal volume limitations, altered hands-off flow conditions, changes to abstraction timing or source and enhanced metering and reporting.
The reforms reduce compensation exposure where variations are necessary for environmental protection or to comply with statutory plans.
Mechanisms and process
The EA will commit to evidence-led reviews including catchment assessments, ecological status, flow data and cumulative impact analyses.
Licence holders receive notice of proposed variations, with a statutory period to make representations (WRA 1991, s. 51).
The EA issues a variation decision with reasons and appeals lie to the Secretary of State (Abstraction and Impoundment Licensing Appeals) with the prospect of Judicial Review opportunities to follow.
What are the likely consequences?
Following the changes, we can expect to see tighter conditions in over-abstracted catchments and increased curtailment during low flows.
This will be paired with greater compliance duties including real-time monitoring and telemetry.
Now is the time to increase Investment in efficiency, storage, and alternative sources and be aware of potential operational constraints for agriculture and industry.
There is likely to be reduced scope for compensation where environmental necessity is shown.
Conclusions
The effects and implications for those that utilise an abstraction licence could be significant and substantial.
The potential for detriment is stark and diligence and proactive assessments are essential.
It is known that EA are already sending out consultation letters to raise awareness of the changes.
It is essential that affected persons and business engage with the EA and seek early advice.
The Team at Dyne Solicitors are specialists in Environmental and Regulatory Disputes. We can advise, guide and support you through the EA changes and make recommendations to protect your rights to continue with abstraction.
Please contact Alex Sandland or Patrik Jones-Wright via email or by calling 01829 773100.