Why we charge and how we determine our charges

We protect and improve the environment and make it a better place for people and wildlife. We regulate businesses in order to minimise pollution incidents and reduce industry's impacts on the environment.

We are required by the Secretary of State for Environment, Food and Rural Affairs to recover the costs of our main regulatory services from the companies we regulate.

Sources of funding

Government grants from the Department for Environment, Food and Rural Affairs (Defra) and the Welsh Government and the charges we raise are our two main sources of funding.

Our regulatory work is funded through the charges we raise for environmental permits and licences. For other aspects of our work relating to fisheries, recreation and navigation, we raise charges on those who benefit, supplemented by government grants.

How we determine our charges

When we set our charges we consider statutory requirements and government guidance. We apply general principles that have been established to ensure our charges fairly reflect the costs of regulating an operator or providing a service.

• Legislation, government guidance and direction
  Refers to the various legislation and sources of guidance from Defra and other government departments as well as statutory direction.
  
• General principles
  Describes the principles we use to calculate our charge rates.
  
• Consultation and approval process
  Explains the processes we follow when consulting on our charges including links to any current consultations and how our charges are approved.