Latest ECA News Dec 2008

Waste not want not with tax breaks on water saving technologies

The Water Technology List (WTL), which provides information on water-saving products that qualify for up-front tax relief, has been expanded to include a new category featuring a range of technologies concerned with the recovery and re-use of waste water.

Sustainable business experts Envirowise, that manage the scheme in partnership with Defra and HMRC, says the new Water Re-use category will be of interest to many businesses that have a use for recycled water and want to reduce both the volume of water they require and costly effluent charges.

The new category covers a range of technologies united in their ability to recover at least 40% of waste water for re-use. The category includes the existing membrane-based filtration systems alongside other wastewater recovery and re-use technologies, such as aeration, wastewater evaporation, fluid filter, sand filters, and dissolved air flotation systems.

The inclusion of these system-based technologies within the WTL enables businesses investing in qualifying equipment of this nature to claim Enhanced Capital Allowances which allow 100% of the cost of eligible systems to be offset against taxable profits of the year of investment. This is in addition to the significant cost savings on mains water use and effluent charges offered by this type of equipment.

The WTL also includes a number of ‘off the shelf’ approved products, including efficient showers, taps and toilets, and rainwater harvesting equipment, that help to make businesses more water-efficient, reducing both their bills and demand for mains water.

Envirowise water specialist, Claire Sweeney, says: “With water and sewerage costs rising on average by 7% last year, and the regulator set to review prices again in 2009, businesses that depend on water in any way could stand to benefit from the WTL.

“The argument for future-proofing against limited supplies and price rises has never been stronger. Recovery and re-use of wastewater is one of the areas where the biggest savings can be achieved and we hope many businesses will view the technologies recently added to the WTL with interest.”

Envirowise says there may be potential for businesses to reduce their water bills considerably, with cost savings of around 30% on water and effluent bills realistically achievable for a business that has never examined its water use before, through the implementation of simple low and no-cost water management measures. Through investment in water-saving technologies, such as those available on the WTL, Envirowise estimates savings can increase to as much as 50%.

To find out more about purchasing products and technologies on the WTL or to register a product for inclusion on the List, visit www.eca-water.gov.uk.

Businesses that are keen to take action to address their water consumption can also take advantage of the free advice and support offered by Envirowise. For more information, call the Envirowise Advice Line on 0800 585 794 or visit www.envirowise.gov.uk/water