I propose to take Questions Nos. 307 to 311, inclusive, and 326 together.
The Programme for Government and the Memorandum of Understanding with the EU, the IMF and the ECB both provide for the introduction of domestic water charges. The Government considers that charging based on usage is the fairest way to charge for water and it has decided that water meters should be installed in households connected to public water supplies. The Government has also decided that Irish Water, a new State-owned water company to be established as an independent subsidiary within the Bord Gáis Éireann Group, will be responsible for the metering programme and, in line with the commitment in the Programme for Government, will take over the operational and capital delivery functions of local authorities in the water services area. It is intended that the legislation to transfer statutory responsibility for water services to Irish Water will provide for local authorities to act as agents for Irish Water with this relationship being expressed through Service Level Agreements.
It would be inappropriate to release estimates of the cost of the metering programme in advance of the completion of the ongoing competitive procurement process. A pre-installation survey is currently being conducted by the local authorities to provide further information on the scope of the metering programme and this will identify those properties which already have boundary boxes and meters installed. There will be no upfront charge for the installation of the meter.
The Government has also decided to assign responsibility for the economic regulation of the water sector, including the setting of charges, to the Commission for Energy Regulation. The primary role of the regulator will be to protect the interests of customers and to ensure a consistent and appropriate level of service is provided to them. The Regulator will also be responsible for determining the framework for levying water charges. An appropriate approach to charging customers will be put in place and a public consultation will take place as part of the regulatory process. It has been decided, following the 9th Review of the Memorandum of Understanding by the European Commission, the IMF and the ECB, that water charges will commence with effect from Quarter 4 2014. It is expected, therefore, that Irish Water will issue the first bills to customers from January 2015.
Irish Water will be required to have a range of options in place to assist householders who have difficulties in paying their bills. Affordability issues will be addressed by my Department and the Department of Social Protection, in consultation with the Regulator, Irish Water and other stakeholders, in the context of developing a water pricing framework. The agreed approach to affordability issues will then be reflected in the charging structure established by the Regulator. It is important to distinguish between people who cannot afford to pay and people who refuse to pay. It would be expected that Irish Water would pursue payment from customers who refuse to pay even when they have the financial capacity to pay the bill, and a range of options will also be put in place to this end, as is normal practice with other utility service providers.
These matters will be addressed in legislation that is being prepared by my Department.
