Dáil Éireann Debate, Tuesday - 3 November 2015
1061. Deputy Jim Daly asked the Minister for the Environment, Community and Local Government the annual operation costs of delivering domestic water services, excluding capital expenditure, for each of the past five years; the current operation costs under Irish Water; the anticipated operational costs for 2016; and if he will make a statement on the matter. [37736/15]
View answerSince 1 January 2014 Irish Water has statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels including the delivery of water services capital infrastructure. Irish Water is being funded by a combination of domestic and non-domestic water charges, Government support and the raising of debt on capital markets. Irish Water is a regulated utility and its operating and capital plans are reviewed by the Commission for Energy Regulation, which approves an “allowed revenue” to end 2016-this represents the total costs (including depreciation and the return on capital employed) which Irish Water can recover from customer’s bills, taking account of Government subvention. The annual average operational costs in the period 2015 and 2016 under the regulatory model are estimated at €750m. It might be noted that some costs, such as the first fix programme amounting to around €30m per annum are capitalised within the regulatory model, but are treated as operational costs under the relevant accounting rules. Details of Irish Water’s proposed costs are outlined in their revenue and water charges plan which was reviewed by the Commission for Energy Regulation (CER). Details of the review and the CER’s decision are available at www.cer.ie.
In relation to the period prior to 2014, information in relation to the annual spend by local authorities is outlined each year in the local authority's Annual Financial Statement. It should be noted that this expenditure included costs associated with non-public water services e.g. group water schemes, and in some cases other services such as surface water drainage, flood alleviation etc. which remain the responsibility of local authorities as these functions have not transferred to Irish Water.
