Authorities still undecided about tariffs for groundwater extraction

The authorities are still mulling whether to introduce tariffs on groundwater boreholes, a year and a half after first floating the idea in a public consultation.

Malta relies heavily on groundwater extraction, with data showing that just over a third of its water supply is sourced through groundwater, with the remaining two-thirds coming from desalination plants.

Groundwater extraction for commercial purposes is currently free. Several companies in Malta are known to extract water from boreholes at no charge, before purifying it and bottling it to sell to their customers, using it in their products or selling it to households looking to fill their swimming pool as summer approaches.

Groundwater is also frequently used in the construction industry. In 2019 alone, some 95 million litres of groundwater were extracted to produce concrete, all without paying a single cent.

Last year, MaltaToday reported that over a third of groundwater extracted is used by bottlers, bowsers and construction companies.

In late 2023, the government had proposed a new system to regulate the use of boreholes, which would see commercial operators being charged to make use of groundwater, putting the matter up for public consultation.

The proposal said that anyone hoping to extract groundwater would need to apply for a licence, which would need to be renewed from time to time.

Although commercial extraction would be charged, the proposal said, farmers would be allocated a quota of free groundwater, only being asked to pay if they exceed their quota.

Consultation 'concluded positively'

When contacted by Times of Malta, a spokesperson for ERA said that the consultation, which closed in early 2024, had “concluded positively and resulted in a more consolidated proposal for the establishment of a groundwater abstraction licensing legal framework, which is currently being finalised”.

But whether this new framework will include charges for commercial extraction remains to be seen.

When asked about the matter, the spokesperson said that “at this stage, discussions are ongoing and any tariffs which will be considered will be published in a draft Legal Notice for public consultation”. The authorities say there are some 7,900 registered boreholes and shafts used to extract water across Malta and Gozo.

While most of them, roughly 4,400, are shafts that include old hand-dug wells (spieri), the remaining 3,500 are fully-fledged boreholes.

Around five million cubic metres of groundwater are extracted from registered boreholes and shafts each year, the ERA spokesperson said.

Nonetheless, the true quantity of water extracted is believed to be higher, with the authorities still grappling with illegal extraction from unregistered boreholes and wells.

Presenting the proposals in 2023, Energy and Water Agency CEO Manuel Sapiano had said that the new measures, together with existing real-time monitoring systems, would help authorities identify spots where illegal extraction is taking place.