I propose to take Questions Nos. 448, 450, 504 and 505 together.
The Programme for Government includes a commitment to introduce 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. The Water Services Act (No. 2) 2013 provides for the transfer of water services functions from the local authorities to Irish Water. The Act also provides that the Commission for Energy Regulation (CER) will be responsible for the independent economic regulation of Irish Water. The CER has been given statutory responsibility for protecting the interests of customers.
Under the European Communities (Drinking Water) (No. 2) Regulations, 2007, a copy of which is available in the Oireachtas library, suppliers of drinking water are required to ensure that the water supplied is wholesome and clean. Water which is wholesome and clean is defined as water which is free from any micro-organisms and parasites and from any substances which in numbers or concentrations constitute a potential danger to human health, and which meets the quality standards specified in the Schedule to the Regulations. Hard water is not included as a parameter in the quality standards specified in the Regulations, as it does not pose as a threat to human health. The Environmental Protection Agency is the supervisory authority with responsibility for monitoring Irish Water’s compliance with these regulations.
The Water Services (No.2) Act 2013 requires that Irish Water will prepare codes of practice, on a range of matters, including standards in relation to the performance by Irish Water of its functions and billing by Irish Water of persons in respect of water services provided. Irish Water will also be required to prepare a code of practice on any matter considered necessary by the CER. I expect that the CER will consider compliance with statutory standards by Irish Water in fulfilling its functions.
An inter-departmental working group has been established to advise the Government on the appropriate method for addressing affordability issues which may arise with the introduction of domestic water charges. The group comprises officials from my Department and from the Departments of the Taoiseach, Social Protection, Public Expenditure and Reform and Finance. The terms of reference of the group include identifying groups likely to face affordability issues, examining appropriate mechanisms for addressing affordability issues for these groups and outlining the administrative arrangements required to deliver on the recommended approach. The group has met seven times to date. A final report will be submitted for consideration by Government when the group has completed its examination of the issues involved. No decision has yet been taken on the level of, or the approach to, the free allowance. However, it is under active consideration, and I would expect to bring proposals to Government shortly.
The approach to charging will be outlined by Irish Water in a water charges plan submitted to the CER in line with the provisions of the Water Services (No.2) Act, 2013. The CER will be responsible for approving the water charges plan and will engage in public consultation on the approach to charges. 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, including the funding available for the free allowance and any proposed affordability measures.
