The CER is the independent economic regulator of Irish Water. The CER retains the power to advise
the Minister on development and delivery of water services. It will:
set performance standards for the new utility;
examine Irish Water’s operational costs and capital plans and approve water charges plans in the light of these costs; and
have powers of direction over Irish Water to produce codes of practice relating to performance standards, customer billing, payment methods, Irish Water information
communication to customers, and customer complaints.
The Minister for the Environment may give the CER a direction of a general policy nature, which the CER must comply with. Such directions will only be given with adequate reasoning, consultation and advanced notice.
Public consultation will form part of CER’s decision-making processes. It has already held a public
consultation on a proposed economic regulatory framework, which will inform the CER’s advice to
the Minister for the Environment, Community and Local Government on economic regulation. It is
currently holding public consultations on the structure of the domestic and non-domestic tariffs, and on customer protection measures.
FAQs
Yes. The commencement date and other details of the scheme will be announced by Irish Water shortly.
The annual cost of water services is over €1 billion per annum. The Government’s decisions on subvention and allowance were based on the level of funding required by Irish Water during 2015 and 2016 and an average level of domestic water charges that will contribute to the funding of water services.
People can identify leakage by performing a meter reading before and after a period when the house is unoccupied and no appliance requiring water is in use.
This can be done by lifting the lid of the meter, noting the reading, and checking it again after returning.
In addition people can regularly check their water meter readings so see how many cubic metres (1 cubic meter equals 1,000 litres) have been used.
The average water usage per person in Ireland is estimated at 145 litres per day).
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People with high water usage for certain medical conditions will have their bills capped at the relevant assessed charge.
The absence of a standing charge for domestic customers will benefit smaller households, who can then manage their usage, and the free allowance for children will benefit families.
Irish Water’s water charges plan will have to take account of the quality of services provided to customers, including circumstances where services are reduced or restricted (e.g. due to boil water notices).
The CER has commenced public consultation on the proposed structure of tariffs. The Minister will publish the proposed direction to the CER in draft form, and so there will be ample opportunity for engagement on these issues in advance of the final setting of the charges by the CER in August 2014.
Consultation by the CER in late June will provide information on the financial costs of Irish Water and the proposed level and structure of charges.
Irish Water will deal with all the practical arrangements flowing from the CER consideration and Government decisions, including direct engagement with customers on qualifying for the free allowance as the process develops.
Irish Water will have measures in place to allow for ease of payment of Bills. In the case of failure to pay, Irish Water is empowered to reduce water pressure in order to restrict supply. Water disconnection due to non-payment of domestic water charges is prohibited. If a customer fails to pay a water charge, it shall be recoverable by Irish Water as a contract debt in any court of competent jurisdiction.
Irish Water will be required to ensure in the water charges plan submitted to the CER that free allowances are only applied to households who pay their charges in a timely manner i.e. where charges are paid in accordance with the approved water charges plan or an approved agreement.
It is anticipated that Government subvention to Irish Water will continue beyond 2016. Decisions on water charges beyond 2016 will be decided in advance of the next Irish Water revenue control period, 2016-2022.
The level of charges beyond 2016 will reflect the Government’s policy in relation to free allowances and the utility’s changing financial model as well as the need for extra investment to tackle the current infrastructural deficit.
The fact that Irish Water is a commercial semi-state body, with borrowing not included on the general government balance, provides alternatives for more sustainable funding for the sector.
Each household will receive a free allowance of 30,000 litres of water supply (and a corresponding allowance for wastewater) per annum (for primary residences only).
Each household will receive an additional allocation for every child under 18 (with entitlement aligned with child benefit) to cover the normal water consumption of a child.
The Minister for the Environment, Community and Local Government will use his powers to issue a policy direction to the CER:
the domestic charging regime will be fixed for 2015 and 2016;
for social and environmental reasons, there will be no standing charge for domestic customers (a minimum charge may be applied to properties that are not permanently
occupied e.g. holiday homes);
Assessed charges will be based primarily on occupancy and possibly refined based on data from metered usage to ensure that they are as close a proxy for metered usage as possible;
the CER to ensure provision is made for retrospective adjustment of charges including a rebate (above a reasonable threshold) in the context of transitional arrangements for
people from moving from assessed to metered home;
Charges to be capped for people with high water usage due to certain medical conditions; and Irish Water to take account of the quality of services provided to customers, including circumstances where services are reduced or restricted (e.g. due to boil water notices).
Irish Water will receive an operational subvention averaging in excess of €530m in 2015 and 2016, and provision is being made to provide equity of just over €400m in equity to Irish Water in 2015 and 2016 (this is in addition to a capital provision of €240m by way of equity in 2014). This will bring the overall capital programme in 2015 and 2016 to over €400m - €100m higher than current levels.
Irish Water will deliver a free first fix scheme, entitling every household to a free fix of the first leak identified on a customer’s water supply pipe.
The Government will adjust the subsidy to group water schemes to ensure that households in that sector receive equitable support by comparison with households on public water supplies.
