FINANCING SYSTEM FOR ACTIVITIES CONNECTED WITH THE USE
AND PROTECTION OF WATER IN THE SLOVAK REPUBLIC

Ivan Zavadsky

Direction of Air, Water,
Waste and Environmental Risks Division
Ministry of Environment
Slovak Republic

The basic legal regulation for the protection and use of water is the Act No. 138/1973, Coll. of Acts concerning water (the Water Act) as amended by the Act NC SR No 238/1993, Coll. of Acts determining the following basic duties for water use :

to protect surface and groundwater during their use and ensure their rational management,

to make effective changes in the production technology so that the most rational and repeated use of water may be reached; as well as the recovery or improvement of its quality,

to take care of hydraulic works or facilities which allow water use

when residential complexes, new factories and similar buildings are constructed, the investment organisations must also guarantee their supply with water and drainage, treatment, and respectively other disposal of wastewater drained from them.

 

At the present time, valid economic tools for the protection and use of water are based upon the creation of charges pursuant to the Act No. 138/1973, Coll. Acts (the Water Act) and Governmental Decree No. 35/1979, Coll. of Acts concerning charges in the field of water management as amended by later legislation. Penalties defined by the above quoted act, may also be considered as a complementary but effective tool for water protection. Income from charges and penalties goes to the State funds, otherwise they are considered as income of the State River Basin Enterprises.

The system of charges, valid equally for the whole SR territory is as follows :

Charges for the consumption of water from watercourses : organisations which withdraw more than 15,000 m³ per year or 1,250 m³ per month, have to pay a water charge to the watercourse administrator or to the administrator of the stream section.

In 1996, the income coming from water withdrawal charges represented SK 914.7 million. This does not cover the necessary costs for the maintenance and the management of watercourses on the whole SR territory, and for development needs.

Charges for groundwater consumption : organisations that withdraw more than 15,000 m³ per year or 1,250 m³ per month, have to pay charges which represent the income of the SR State Water Management Fund. Before, ground water consumption was not charged if used for supplying the inhabitants with drinking water. By Governmental Decree No.235/1996, Coll. of Act, this consumption is also charged now. State enterprises which deal with water supply and sewerage pay 1 SK per m³ to the SR State Water Management Fund, other ground water consumers pay 2 SK/m³. In 1996, the income from charges for ground water consumption represented SK 104 million; in the previous year, when the Decree of the Government No. 235/1996, Coll. of Acts, had not yet come into force, the charges represented SK 41 million.

Charges for discharging wastewater in surface water : this charge depends on the kind and quantity of waste water pollution and pollution level of the water stream into which wastewater is discharged. There is no charge if the quantity of the pollution discharged does not exceed the values mentioned in the relevant legal regulation. The charges are the income of the SR State Environmental Fund.

Those that pay charges are the companies which discharge wastewater in surface water. They are composed of two parts : basic charge and additional charge.

The basic charge is calculated according to the concrete or generally applicable method of wastewater treatment and discharge. The amount of the additional charge depends on the damaging of water quality caused by the discharge of wastewater in the watercourse. The calculation method is precisely defined.

The payment of charges does not release the organisation from the responsibility for damages caused by the discharge, according to the general obligatory rules.

Charges connected with water supply by public water pipes and the discharge of wastewater through public sewers : the regulation of the MLVH SSR No. 154/1978, Coll. of Act, as amended by the regulation No. 15/1989, Coll. of Acts concerning public water pipes and sewers modifies the administration and operation of public water pipes and sewers, as well as the general conditions for water supply by public water pipes and drainage of wastewater by public sewers. The Water Act defines the duty to pay charges for the public water supply from public pipes and the drainage, i.e. disposal of waste and rain waters by public sewers. The price is firmly fixed by the regulation as a maximum for households. The prices are contractual for the other consumers. The present maximum price for inhabitants does not allow a necessary development in the field of investments. The recipients of charges are state enterprises for water supply and sewerage and municipalities which run public water pipes and sewers.

Rent from water power plants : it is the charge for using water needed for energy production. The charge includes the use of hydraulic works, on the basis of the operation, management, maintenance and depreciation costs of a power plant, which is proportional to its energetic part. The payment is the subject of an agreement between the energy producer and the relevant river basin enterprise, using financial sources to pay the costs connected with the management and operation of hydraulic works meant for energy production. The charges represent the income of river basin companies.

It is suggested to charge for the hydroenergetic potential of water streams. This should become a financial resource for the SR Water Management Fund.

Penalties : are imposed by water management bodies according to facts mentioned in the Governmental Decree No. 31/1975, Coll. of Acts for breaching of duties defined for the water management sector. It especially concerns:

water consumption without a permit issued by water management bodies

water discharge without a permit from a water management body or in contradiction with it

pollution of surface or groundwater or endangering their quality or healthiness through the manipulation of substances detrimental to water

damage to public water pipes or sewers

breaching of other duties determined by the above acts or duties imposed by them.

The maximum penalty is SK 1 million.

Besides charges and penalties, the SR State Environmental Fund and SR State Water Management Fund may be considered as economic tools in the field of water protection.

The SR State Environmental Fund was established by the Act No. 128/ 1991, Coll. of Acts. The purpose of the Fund is to concentrate financial means and spend them for the environment. The economic mission of the Fund is to mobilise the capital of individual investors to solve ecological problems and create more favourable conditions on the investment market for ecological investment, thus speeding up and facilitating their implementation.

The Fund’s resources in the field of water quality and quantity protection and rational use are in particular :

charges for wastewater discharges in surface water

penalties imposed by State water management bodies

contribution of the SR state budget

The SR State Water Management Fund was established by the Act SNR No. 318/ 1991, Coll. of Acts. The SR Government, by its provision No. 589 of October 22, 1991, accepted the statute of the SR State Water Management Fund, established on December 1, 1991. The Fund is used to finance constructions meant for water management, hydrogeological research, prevention of accidents in hydraulic works, development of sciences and technologies.

The SR Water Management Fund’s resources are as follows:

charges for groundwater consumption

subsidies for development from the SR state budget

loans from financial institutions

interests from the Fund resources

gifts and contributions from legal and physical entities

 

At present, the Revolving Fund is being prepared. It should assist in the implementation of activities and actions aiming at improving environmental protection thanks to loans with low interests.

A new Water Act is also being prepared which should reflect the changes in the political and economic situation. With regard to it, many new legal regulations will be issued, including those which define charges and penalties for the use and protection of water.

The objective of these changes is to increase the protection of water sources and their rational use, thus enabling their sustainable development. For instance, in the new amendment for wastewater discharges in surface water, the polluters should be motivated to use clean technologies for minimising the quantity of pollutants discharged into water and also to support the construction of wastewater treatment plants. The strategy to reduce pollution aims at eliminating pollution at its source and preference is given to preventive measures rather than to remedial ones.