The Ministry of Environment and Sustainable Development issued Decree 700 of 2026, amending Chapter 6, Title 9, Part 2, Book 2 of Decree 1076 of 2015 (the Unified Regulatory Decree for the Environment Sector) with respect to the Water Use Fee (Tasa por Utilización del Agua – TUA).
The Decree redesigns the tariff formula applicable to the extraction of surface water and groundwater, excluding marine waters. Under the new framework, the fee is calculated by multiplying the national minimum tariff, currently established under Resolution 1571 of 2017, by a regional factor, which now comprises the following four components:
(i) Investment Coefficient, which reflects the resources allocated to the protection and monitoring of water resources within the relevant assessment unit.
(ii) Water Use Pressure Coefficient calculated based on the Water Use Index for surface water or the Water Scarcity Index for groundwater.
(iii) Socioeconomic Conditions Coefficient, which considers the municipality's classification, the Unsatisfied Basic Needs Index (NBI) published by DANE, and the user's socioeconomic status, including the SISBÉN classification for individuals; and
(iv) Use Coefficient, which differentiates the applicable fee according to whether the water use qualifies as preferential or non-preferential.
The Decree also establishes that the regional factor may not exceed 14 for surface water and 24 for groundwater. Regarding the Use Coefficient, it provides that, for industrial activities and other non-preferential uses, the coefficient will increase by 0.1 each year beginning on January 1, 2028, until reaching a maximum value of 2 in 2037, resulting in a gradual and predictable increase in water use costs for such users.
Additionally, the Decree retains the Opportunity Cost Factor, applicable where water is both abstracted from and discharged into the same water body. This factor must range between 0.1 and 1, and its application requires users to report both extracted and discharged water volumes in their annual self-declaration.
With respect to the payment period, the Decree confirms that the Water Use Fee is assessed annually, with the assessment period running from January 1 through December 31 of each year.
Regarding collection, the Decree provides that the competent environmental authorities will collect the Water Use Fee annually by means of an invoice, payment statement, or another equivalent document recognized under applicable tax regulations, which must be issued within the first four (4) months of each year. Users subject to the fee will have a maximum of thirty (30) days from the issuance of the corresponding payment document to make payment. Failure to pay within such period may result in the initiation of administrative collection proceedings (coactive collection) by the competent environmental authority.
The proceeds collected under the Water Use Fee will be allocated, as applicable, to the implementation of adopted River Basin Management Plans (POMCA), the preparation of such plans where they are still under development, general water resource protection and monitoring activities, and the preservation, restoration, and sustainable use of páramo ecosystems. For these purposes, the collecting authority may allocate up to ten percent (10%) of the collected revenues to the implementation and administration of the fee.
Among the Decree's most significant developments is the incorporation of official socioeconomic criteria, including municipal classification, DANE's Unsatisfied Basic Needs Index (NBI), and the SISBÉN classification, to differentiate the applicable fee according to each user's socioeconomic conditions. The Decree also establishes a gradual and predetermined schedule for increasing the Use Coefficient applicable to industrial activities and other non-preferential uses through 2037.
These amendments are particularly relevant because they introduce greater progressivity and transparency into the calculation of the Water Use Fee while also anticipating a foreseeable increase in water use costs for industrial users. Companies should therefore review their regulatory cost projections and ensure that their annual self-declaration and reporting procedures comply with the new requirements.
The Decree also establishes a procedure for claims and requests for clarification available to users subject to the Water Use Fee who dispute the amount charged. The filing of a claim does not suspend the payment obligation, and the Decree provides mechanisms for adjusting future invoices or issuing refunds where appropriate.
Finally, Decree 700 of 2026 will enter into force on January 1, 2027, and repeals all provisions that are inconsistent with its terms.
Brigard Urrutia remains available to assist clients in assessing the legal and operational implications of this new environmental regulation.