A staggering 1.7 million cubic metres of groundwater was extracted in 2023 for non-agricultural purposes, including commercial use by water tankers, beverage companies, and construction firms, as well as domestic use. According to data from the Energy and Water Agency (EWA), this represents a sharp increase from 2019, when only 833,004 cubic metres were abstracted for non-agricultural use.
The proportion of groundwater taken for non-agricultural purposes has risen from 21% in 2019 to 35% in 2023, with only a marginal increase in agricultural abstraction from 2.9 cubic metres to 3.2 cubic metres. Notably, just two boreholes accounted for over 50,000 cubic metres of groundwater extraction in 2023, down from six in 2019. Despite metering of all registered groundwater sources, no tariffs are currently imposed on water use, effectively allowing commercial entities to exploit this natural resource for free.
However, proposed changes outlined in a green paper could introduce a tariff system based on abstraction volumes, distinguishing between domestic, commercial, and agricultural users. Farmers would receive a quota-based allocation, while commercial operators would be eligible for a 25% rebate on groundwater abstraction costs if they implement water management measures.
The EWA is currently drafting a white paper, evaluating submissions from stakeholders and addressing concerns raised during public consultation, including the impact on bowser water costs, permitting issues, and enforcement needs.
