Water charges
From Department of Housing, Local Government and Heritage
Published on
Last updated on
From Department of Housing, Local Government and Heritage
Published on
Last updated on
Under the 'Confidence and Supply Arrangement' it was agreed with Fianna Fáil, in the context of supporting a minority government, an Expert Commission on Domestic Public Water Services was to be established to assess and make recommendations on the funding of domestic public water services in Ireland and improvements in water quality, taking into account:
The ‘Confidence and Supply Arrangement’ provided that the Expert Commission’s recommendations would be considered by a Special Oireachtas Committee, the Joint Oireachtas Committee on the Future Funding of Domestic Water Services, and, ultimately, the Oireachtas would then determine the enduring funding model for public water services into the future. The Joint Oireachtas Committee on the Future Funding of Domestic Water Services deliberated the Commission's findings and published its report on 12 April 2017. Both Houses of the Oireachtas approved the report in April. Its main recommendations were:
Following the publication of the report of the Joint Oireachtas Committee and its approval by the Oireachtas an interdepartmental working group was established containing representatives from the Department of Housing, Planning and Local Government, the Department of Finance and the Department of Public Expenditure and Reform to determine how to best implement a new funding model for Uisce Éireann in line with the recommendations of the Joint Oireachtas Committee. The recommendations of this Working Group were:
The revised funding model proposed for Uisce Éireann seeks to ensure that:
Uisce Éireann to develop a multi-annual Strategic Funding Plan which outlines the costs and revenue requirements associated with the implementation of the Water Services Strategic Plan covering the period of the relevant regulatory cycle (five/six years), having regard to a Water Services Policy Statement by the Minister.
This plan will be approved by the Minister as the basis for the Uisce Éireann submission to the CER for the forthcoming regulatory cycle. This will provide ensure a common understanding between Government and Uisce Éireann of the broad financial parameters and investment priorities. While Uisce Éireann will receive annual budgets, they will be framed against the backdrop of this plan, and where funding reductions are required, change control mechanisms will ensure that the CER is involved in the associated decision making process.
All State funding to Uisce Éireann in respect of domestic water services will be channelled through the DHPLG Vote and will be in the form of a payment for domestic water services as determined through the regulatory process and a capital contribution.
The payment in respect of domestic water services will be based on the purchase of water as heretofore, albeit that it is now covering the entirety of domestic water consumption other than excessive usage revenue. The capital contribution will be increased to encompass funding for domestic water services and will be paid, on broadly similar terms to Uisce Éireann, as when issued by the Minister for Finance in the past.
Uisce Éireann will raise debt (within limits) only for non-domestic sector capital expenditure in order to ensure that full cost recovery can be demonstrated for that sector and to avoid cross-subsidisation or state aid concerns.
Uisce Éireann are required to plan major infrastructural projects that are a key element of Uisce Éireann's overall nationwide remit to meet the bulk of domestic, commercial and industrial water services needs into the medium to long-term future (to 2050 and beyond). Such major projects will have substantial funding requirements, therefore, there will be a requirement to consider funding arrangements for these major infrastructure projects within this structure (e.g. unitary payments versus up-front capital).