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.
FAQs
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.
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.
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 announce details of payment options in due course, as agreed with the CER, which has powers of direction over Irish Water to produce codes of practice relating to performance standards, customer billing, payment methods, Irish Water communication to customers and customer complaints.
It is expected that, similar to payment systems for the other utility services, there will be a range of flexible payment options available for customers of Irish Water.
Irish Water has signalled its intention to introduce a range of payment options for customers, including an easy payment option for customers who wish to make regular payments of not less than €10 per transaction.
The CER will make a determination on this following public consultation on the non-domestic tariff structure. However, the Minister envisages that any decision by the CER will be guided by the principle of equity for all customers with a domestic supply.
Residences in the following cases would be customers of Irish Water.
Where the residence is connected to the public mains and a public sewer.
Where the residence is connected to the public mains but has its own waste water treatment such as a septic tank or other waste water treatment system
Where the residence is connected to a group water scheme and uses a public sewer.
Where the residence has its own private well and uses a public sewer.
Residences in the following cases would not be customers of Irish Water.
Where the residence is connected to a group water scheme and has its own waste water treatment such as a septic tank or other waste water treatment system
Where the residence has its own private well and has its own waste water treatment such as a septic tank or other waste water treatment system
The CER has commenced public consultation on the proposed structure of tariffs and this includes consideration of transitional arrangements for people moving from assessed to metered charges. The Minister has indicated his intention that CER should in this context ensure provision for retrospective adjustment of charges including a rebate (above a reasonable threshold).
No. The free allowance is for a person’s primary residence.
Water and wastewater services are expensive and require increased infrastructural investment after years of under investment. The current funding situation, with only approximately 15% of costs borne directly by users, is unsustainable.
The public water system requires urgent and increased investment. 23,500 people are on boil water notices. 40% of our water supply is lost on leakage. 16% of our water supplies are at risk, affecting over 1 million people.
One-third of secondary waste water treatment plants had inadequate effluent standards in 2012.
There is virtually no spare supply capacity in Dublin. With increased investment, these issues can be addressed.
In order to secure extra investment in water services (to improve water quality, tackle pollution and address leakage), the Government is applying the user pays principle to water services. Those who use water will pay for it directly.
