The Governments water pricing policy requires full and transparent cost recovery of water services — this covers both water and waste water services — supplied to the non-domestic sector. Cost recovery from the non-domestic sector is to be achieved by way of a consolidated meter based volumetric charge, derived from separate rates applicable to water and waste water services. If a non-domestic consumer does not discharge to the public network, for example, where waste water is discharged to the consumer's septic tank, no charge for waste water services will arise. In general, it is not envisaged that an increased burden will arise for non-domestic consumers, solely because water and waste water (where applicable) rates are separately identified. Increases may however arise where a local authority operating the pricing policy had not previously sought to secure cost recovery from their non-domestic consumers.
In relation to the funding of the operational cost of water services provision, yesterday I announced the general purpose grants from the Local Government Fund to local authorities for 2007. This continued the trend of increasing central government support for the local government sector. In addition, a special Local Government Fund allocation of €10m was made in the budget to assist local authorities with extra running costs incurred in the operation of new water services infrastructure that is supporting unprecedented new development in recent years.