Update: Level of Water Charges per Household 1st July 2014

1st July 2014 - Bernard Durkan TD

Question Nos.9, 15, 25 and 29

To ask the Minister for the Environment, Community and Local Government if he will indicate notwithstanding the proposals inherited from his predecessor in respect of the level of water charges proposed per household, if he will endeavour to ensure that the level of charge does not become punitive or likely to cause hardship in the ongoing economic climate; if he will try to ensure a fair and equitable system that falls within the capacity of the householder to meet with the minimum of administrative intervention and cost; and if he will make a statement on the matter.

– Bernard J. Durkan.

For ORAL answer on Thursday, 1st May, 2014.

Ref Nos: 19553/14, 19554/14, 19550/14 and 19564/14

REPLY

Minister for the Environment, Community and Local Government (Mr. P. Hogan)

I propose to take Questions Nos. 9, 15, 25 and 29 together.

The Programme for Government sets out a commitment to the introduction of water charges based on usage above a free allowance. The Government considers that charging based on usage is the fairest way to charge for water and it has, therefore, decided that water meters should be installed in households connected to public water supplies. Some 200,000 meters have been installed to date under the national domestic water metering programme, which is one of the most ambitious metering programmes currently underway internationally.

Irish Water has indicated that it will have installed at least 400,000meters by the end of 2014, with 1.058 million properties to be metered by the end of 2016. Of theestimated 1.35 m domestic propertiesconnectedtopublic water supplies, approximately 300,000 properties will not be metered as part of the current phase, due to the cost or technical difficulty of doing so. These properties would include apartment blocks, other multi-occupancy buildings and houses with shared service connections. My Department has funded a study commissioned by Irish Water on possible approaches to metering properties that are not part of the current metering programme, including apartments and properties with shared service connections. The findings of this report are currently being assessed by my Department.

Domestic water charges will commence with effect from 1 October 2014 and Irish Water will issue the first bills to domestic customers from January 2015. The approach to charging will be outlined by Irish Water in a water charges plan to be submitted by it to the CER. The CER will be responsible for approving the water charges plan which will set the approaches to charging domestic and non-domestic customers.

The Water Services (No. 2) Act 2013 provides that Irish Water can collect charges from its customers in receipt of water services provided by it. The Act also provides that responsibility for the independent economic regulation of the water sector is assigned to the Commission for Energy Regulation (CER) and the CER has been given statutory responsibility for protecting the interests of customers. The CER have commenced a public consultation on the approach to both metered and unmetered charges and details of this consultation and their full consultation plan leading to the approval of a water charges plan as provided for under the Water Services (No.2)Act, are set out on their website (www.cer.ie )

The Government is currently considering proposals in relation to the funding model for Irish Water, including the level of Government subvention. These proposals include measures to support the affordability of water charges, including the provision of a free allowance in accordance with the commitment in the Programme for Government. Full details on these matters will be announced following their completion of their consideration by Government.

The free allowance and the level of funding to be provided by the Government to Irish Water will have a strong bearing on the net charges to be met by households. Consequently, decisions on these matters will provide greater visibility on the expected level of charges in advance of the final determination of all aspects of the water charges plan by the CER. The CER will announce its decision on the approved water charges plan in August 2014. In making its decision on the approval or otherwise of the first water charges plan, the CER will take into account the decisions made by Government on the funding model for Irish Water.

Bernard Durkan TD

Kildare North

Bernard J Durkan is the Fine Gael spokesperson on Public Expenditure, NDP Delivery and Reform. Originally from Killasser, Co Mayo,…

Update: Level of Water Charges per Household 1st July 2014

Bernard Durkan TD

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