Reforming the German Rain Water Charge – Approaches for an Incentive-Oriented but Still Workable Design of the Charge

Abstract

In its current form, the steering incentive of the rain water charge, which is part of the Waste Water Charges Act in addition to the charge for waste water and the charge for small-scale dischargers, has been eroded – mainly due to lavishly granted exemptions by the federal States, but also to lump-sum assessment bases. Since rain water carries significant pollutant loads and complying with the requirements of the European law principle of cost recovery for water services, the rain water charge should be revised as part of the upcoming amendment of the Waste Water Charges Act, aiming to efficiently transmit a much stronger steering impulse than the existing design. For this purpose, the legislator is encouraged to adjust the assessment basis to area-based measurement as well as revising the exemption requirements at federal level. Thusly fortified, a reformed, but still workable rain water charge would provide effective incentives for improving the quality of water bodies.