Charges and Metering

Irish Water

The Water Services (No.2) Act 2013 transferred water services functions from the local authorities to Irish Water.  Irish Water had the power to make charges to customers subject to the approval of the regulator, the Commission for Energy Regulation.

On 1st January 2014, Irish Water became responsible for public water services. The Water Services Act 2014 provided for the establishment of Irish Water as a State-owned company, a subsidiary of Bord Gais, which changed its name to Ervia.

Domestic water charges were due to commence on 1st October 2014.  The Commissioner for Energy Regulation published an approved water charges plan on 30th September 2014.  Particulars were set out in another chapter.

On 19th November 2014, the government introduced a package of measures to make water charges more affordable. The Water Services Act 2014 was passed in response to extensive public protests regarding Irish Water and the charging structures under previous legislation.  It dramatically reduced the level of the charges approved by the regulator and postponed the metering of water for a number of years.

The legislation provided that where a government present or future proposes to initiate legislation to privatize Irish Water it may not be initiated without a resolution of both houses and a plebiscite equivalent to a Constitutional referendum.  It does not apply to transfers of Ervia’s shareholding to other governmental departments.

Charges

The legislation introduced the water conservation grant, which was available to eligible householders at a rate of €100 per household.

The commencement of water charges was postponed to 1st January 2015.  This did not affect charges for non-domestic customers or connection charges for dwellings.

A cap maximum of €160 per dwelling occupied by not more than one adult was applied.  In the case of two adult dwelling houses, the cap was €260. Fifty percent of the maximum charges may be applied where a dwelling receives only one service, i.e. water supply of sewage services. The €260 applies in the case of dwellings which should have been registered with Irish Water by a prescribed date.

Subject to charges above, a maximum volumetric charges of 1.85 meter per 1,000 litre of water and €3.70 for 1,000 litre of water and sewage was provided for. The previous household water allowance in the approved water charge plan was removed. A child allowance was applicable to all persons under the age of 18.

Limits were placed on the extent to which the Irish Water may charge for additional services.

The capped charges were to apply until the end of 2018.  Power was given to the Minister after consultation with the Minister for Public Expenditure and Reform to set maximum charges for periods after that.

Where a customer has not paid water charges within 12 months after the issuing of the first bill and has not entered into or is not complying with a payment plan, Irish Water may charge a late payment fee for each year that the charge remains unpaid.

Premises

Domestic premises under the plan are premises used by a person as his or her place of private residence, whether or not it is his principal residence. Domestic purposes mean the provision of water services for day-to-day domestic requirements, including drinking, washing and sanitation.

A large water user is a nondomestic customer whose annual water consumption exceeds 50,000 m³. A priority services register is a register of customers who are dependent on water for a medical condition and who need to be advised in the event of a planned or unplanned outage of water services affecting their home.

Charges

The CER published a scheme of charges applicable from 1 October 2014 to 31 December 2016.  The Irish Water charges plan refers to water and wastewater charges for domestic and non-domestic customers. The plan covers charges to domestic and domestic customers.

Liability commenced on 1 January 2014.  Customers were billed in arrears, and charges commenced in January 2015.

A customer who is connected to Irish Water’s water supply or wastewater network was charged water supply charges or wastewater charges, or both if they are connected to both.  If he has a private water supply or wastewater treatment system, he will not pay the relevant charge.

The basis of charges depended on whether or not a water meter was installed at the customer’s premises.  Where it was installed, the charge is based on recorded water and wastewater usage.  Where it is not installed, it is charged based on an assessment of the average water and wastewater usage for a comparable household.

The customer is the occupier of the premises to which water services are provided.  It was presumed until the contrary is shown that the owner of the premises is also the occupier under the legislation.

Consumption-Based

The 2014 plan fixed the volumetric unit water supply charges per m².  Similar charges were applied to wastewater. Where water is not metered, consumption is based on an assessment of consumption less drinkable water allowances to derive the charge per billing period.

The assessment was based on the number of occupants. The plan provided benchmarking of notional consumption based on the number of adults and children in the house.

Irish Water contacted all domestic customers in 2014 to validate the information on household occupancy status, water service use, and water service type.   The responses are used to classify customers for tariff and billing purposes.   The Water Allowance is contingent upon registering details with Irish Water.

There was a Water Allowance per household and a children’s Water Allowance to cover the normal consumption of water and wastewater.  They applied to the customer’s principal private residence.

A premises was assessed by reference to the number of adults and children.  There is an assessed consumption of less than a household water allowance and a child’s water allowance.  The household Water Allowance is 30 m³ per annum.  The Water Allowance per service per child is 21 m³ per annum.

The unit rate (€244) was applied to the billable consumption.  The billable consumption is the relevant number of occupants assessed consumption less the household and/or children’s Water Allowances where applicable. The gross assessed consumption for one adult is 66 m³, and for two adults, 87 m³.

Water Allowance

The household Water Allowance was  granted to the registered occupier for the purpose of water supply and wastewater services.  Where the registered occupier moves their principal residence, Irish Water would ensure that all Water Allowances continue to be applied.

The registered occupier qualified for the children’s Water Allowance for each child that normally resides in the premises and is under 16 or between 16 and 17 in full-time education or incapable of self-support by reason of long-term physical or mental disability and ordinarily resident in the State and not in any legal custody, reformatory or industrial school.

The children’s Water Allowances applied to the address at which the child is registered for the purpose of receiving child benefits unless the registered occupier provides approval to transfer.

Annual Water Allowances can be carried over between billing periods but not beyond the annual period.  For the first year, the carryover calculation was to occur on any applicable allowance credit supplied to consumption at the end of the first annual period, i.e. 30th September 2015.

If the consumer had not fully consumed his annual Water Allowance units in the year, any quarterly overpayment was to be credited to the customer bill prior to 1 October 2015.

All metered customers charges were capped at the equivalent unmetered charge for the initial nine-month period.  Irish Water may seek evidence of medical condition by way of a medical certificate or otherwise.  It may investigate instances of high usage to determine if there was other water use or leakage at the property.

If the customer’s water charge reduced upon installation of a meter, that customer may be entitled to a rebate for the period of time, he was liable for unmetered charges. There was a minimum charge for domestic premises not permanently occupied.  This was a total of €125 per year for both water supply and wastewater charges.  It was charged quarterly.

A tariff discount was to be provided by Irish Water, where water is deemed unfit for human consumption.  This was to apply where a Boil Notice is issued or where a Drinking Water Restriction Notice is served on the occupier advising the occupants not to use the water for drinking or food preparation.

The discount for water not fit for human habitation applies only to water and not waste water.  There was provision for a 100% discount in respect of water supply unit charge.

Water Conservation Grant

The water conservation grant was to be paid by the Minister for the Environment and Local Government following consultation with the Minister for Social Protection.  Households may become eligible in 2015 for a grant provided information on the water supply of their dwelling and any necessary information required by the Minister for social protection is furnished to Irish Water.

Households were required to register with Irish Water for details of their water supply and waste treatment. The Minister had the power to make regulations setting out details of the grant, including the amount, eligibility criteria and application procedure.

Person who resided in a nursing home or other residential facility may be eligible to claim the grant in respect of his or her own house provided the house is not rented to another.

Metering

The company was responsible for the installation of domestic water meters which were connected to the public supply.  The legislation gives the Board authority to install meters in all domestic properties.  The Act removed the former prohibition on water charges.

The Board and its subsidiary had the power to charge for water services.  This provision was intended to be commenced when domestic water charges become operative, expected in 2015.

Irish Water was to be responsible for billing and collecting the revenue from households.  The legislation gave it power to obtain information from households in relation to water services.  They were empowered to create a consumer data base.

Water service charges commenced on 1 October 2014.  Metered customers receive a metered bill if a water meter has been installed.  Unmetered customers received an unmetered bill.  The first bills were issued in January 2015.

Irish Water commenced the process of installing, metering to domestic property.  Meters are intended to have an automated meter reading facility.  They were to  be read automatically without entry onto the property.

Charging & Non-Payment

Irish Water had the power to charge non-domestic customers on the same basis as local authorities had charged those customers prior to the transfer date.  This had effect until the commencement of full charging for water in accordance with the Commission for Energy Regulation approval.

Irish Water was to charge each customer, and charges were calculated in accordance with a water charges plan.  Irish Water was prohibited from cutting off water supply arising from non-payment.  It may disconnect a nondomestic user where water charges remain unpaid.

It had the power to reduce the supply of water to all customers where charges remain unpaid.  The power to disconnect the customer or reduce supply was subject to the approval of the water charges plan.

The Water Services (No.2) Act 2013 was amended to prohibit disconnection or reduction of water supplies due to unpaid bills. The 2014 Act removed Irish Water’s power to request PPS details.

Water Charges Plan

Irish Water was to prepare a water charges plan set against the manner and method for water charges to be applied.  That water charges plan must be submitted to the Commission for Energy Regulation.  The Commission has the power to approve or reject the plan.

The water charges plan provided for charges to apply where they are based on the quantity as measured by a meter or where charges are assessed based on a formula set out in the plan.  The plan must specify the charges to apply to different classes of customers and different methods of payment for customers.

Water charges were to apply to the water supply to the premises and wastewater discharge from the premises.  Unless otherwise agreed between Irish Water and the customer, the amount of wastewater discharged was deemed equal to the amount of water supplied at the premises.

The Commission for Energy Regulation had the power to advise the government in relation to the development of water services regulation.  Bord Gáis Éireann or its subsidiary was to be the metering authority for the installation of a water meter.  The functions of the water services authority in relation to water meter installation may be carried out by the metering authority.

Installation of Meters

The metering authorithe ty had same powers as the water service authority subject to the same consents and conditions that would have been applied if the function was carried out by the water authority.  Installation of water meters may be carried out by a water services authority, metering authority or jointly by both.

The provisions of the Water Services Act relating to the installation of pipes applied to metering authorities.  There was no requirement to obtain the consent of a road authority where it was applicable when the water services authority was not the relevant authority.  The installation of water meters is exempted from planning permission.

The ownership of the watering meters remains vested in the Irish Water.  The immunities in the Water Services Act for water service authorities is extended to Bord Gáis Éireann and the Irish Water.