Water Charges Removed

Charge & Suspension

The Water Services Act 2014 provided for a revised domestic public water charging system, which commenced on 01 January 2015. Irish Water began charging in respect of dwellings receiving its services from 1 January 2015, with quarterly bills issuing from April 2015.

The Water Services Act  2016 provided for the suspension of domestic water charges for nine months, from 01 April 2016 to 31 December 2016, to provide time for an extensive deliberative process to be undertaken on the funding of domestic water services.

The suspension of domestic water charges from the beginning of Quarter 2 2016 to the end of Quarter 4 2016 will result in customer revenue losses for Irish Water, requiring additional Exchequer subvention in 2016.

Due to the suspension of the 2016 Water Conservation Grant, for which €110 million was originally allocated, the net additional cost of suspending water charges for nine months is unlikely to exceed €20 million in 2016.

Expert Commission

Government established an expert commission, to will make recommendations on a sustainable long-term funding model for the delivery of domestic water and wastewater services by Irish Water. A  special Oireachtas committee on the funding of domestic water services was  to  consider these recommendations and endeavour to make its own recommendations.

An expert commission was established to fund domestic public water services in Ireland. The report was published in 2016, and its recommendations included funding of water services for domestic and personal use out of taxation.

Special provisions should be made for those with special medical or other needs. The volume of water required for normal domestic and personal use should be independently assessed through an open and transparent process.

Sufficient water should be provided to cover domestic and personal needs. The cost of provision would be recovered from the state based on tariffs approved by the CER (CRU) following consultation. Excessive or wasteful use should be paid for by the user in accordance with tariffs determined by CER (CRU).

The recommendations of the Committee provided for the discontinuance of domestic water charges for dwellings as set out in the Water Services Act, 2014 to be replaced by arrangements including the introduction of a levy for excessive use of water.

Charges Suspended

The Minister for the Environment could extend the nine-month period of suspension by way of Ministerial Order for a further period if he or she was satisfied that the Oireachtas committee, established to examine the issue of  funding of domestic public water services, would not conclude its work by 31 March 2017.

The Minister could also extend the suspension by order to enable the Government to consider the recommendations of the Oireachtas committee.

Irish Water could not include the period of suspension of domestic water charges in calculating the time period of unpaid water charges, for which a late payment charge applied.

Charges Abolished

The report was implemented by the Water Services Act 2017. This includes the extinguishment of liabilities and reimbursement of payments made prior to charge suspension in 2016. It provides for a charge for excessive users above a threshold.

A water forum and Water Advisory Body was established. The Commission for Regulation of Utilities is involved in dispute resolution between customers.

The Water Services Act 2017 (Threshold Amount and Allowance Amount) Order 2017 establishes a threshold above which water charges would apply to customers. The threshold is 213,000 L per year per dwelling house. An additional 25,000 m is allowed per person above for persons living in a dwelling house.,

The Water Services Act 2017  provided for the release of any existing liabilities for water charges for domestic customers for the period prior to the suspension of charges in 2016. It remove the late payment charges for dwellings and provides for refunds by Irish Water of all domestic water charges paid since they were introduced on 1 January 2015 and provides for new arrangements where excessive use of water above a threshold arises.

Funding of Water

From 2018 onwards, all State funding to Irish Water was to be channelled through the Department’s Vote and was to  be in the form of a payment for domestic water services as determined through the regulatory process and a capital contribution.

The 2017 Act provided for the development of a strategic funding plan by Irish Water in order to provide clarity on the investment requirements and operational costs over a multi-annual period. To facilitate the change in funding sources from the Local Government Fund (LGF) and the Central Fund, the act provided for the payment of motor tax receipts into the Exchequer rather than the LGF and the direct payment by Revenue of local property tax receipts.

Consumption Thresholds

The Commission for Regulation of Utilities (CRU) is to carry out a review to assess the average consumption by customers of water services provided by Irish Water to dwellings which are used by the Minister to set the threshold over which excessive usage payments may apply. The CRU recommends to the Minister,

Based on consumption trends, the level of allowance to apply for usage by larger households (i.e. where five or more people are ordinarily resident in a dwelling).

There is a process for specifying the threshold amount and the allowance amount following receipt of the report from the CRU. It is  calculated by multiplying by 1.7 the amount assessed by the Commission as the average rate of consumption of water services in a 12 month period. Allowances are provided where the excessive use of water is caused by the size of the household or medical needs in the household.

The multiplier of 1.7 may be reduced in time, but not within the first five years of the Act and not without a positive resolution of the Oireachtas.

Exceeding the Threshold Amount

Irish Water may not charge a customer for water services provided that the customer does not consume water services in excess of the threshold amount at that dwelling. Irish Water may give notice to a customer where the threshold amount has been exceeded.

A customer who continues to consume water services in excess of the threshold amount after a period of 6 months following  notice is liable to pay Irish Water for the rovision of any waterservices that exceed the threshold amount. The payment levels will be set by the CRU having regard to the costs of Irish Water.

The amount of a charge for the provision of water services that exceed the threshold amount may be calculated by Irish Water in relation to such provision over a period of less than 12 in such proportion as is equal to the proportion of that lesser period to a period of 12 months.,

A customer who receives a notice of the provision of water services exceeding the threshold amount can seek an allowance relating to the size of their household to reduce or eliminate their liability. The allowance amount set will be multiplied by the number of persons over four in a dwelling.

A customer who receives a notice of the provision of water services exceeding the threshold amount can seek an exemption from payment where the usage arises from a medical need of a member of the household, giving rise to additional demand for water services.

Services & Complaints

Irish Water may also charge for services relating to the connection of the dwelling to water services and where charges apply to the reading and testing of water meters when requested by a customer of Irish Water in respect of the dwelling.

Irish Water is to amend its code of practice to make additional provisions in relation to the making of complaints to Irish Water by persons in relation to notices received relating to the provision of water services exceeding the threshold amount.