With effect from 1 January 2014, Irish Water is responsible for public water services. The Water Services (No. 2) Act 2013 provides that Irish Water can collect charges from its customers in receipt of water services provided by it. The Act also provides that responsibility for the independent economic regulation of the water sector is assigned to the Commission for Energy Regulation (CER) and the CER has been given statutory responsibility for protecting the interests of customers. The CER has now issued a determination on the water charges plan submitted to it by Irish Water. Full details and associated documentation are available on the CER website at www.cer.ie/document-detail/CER-Water-Charges-Plan-Consultation/979.
In making its determination on the water charges plan, the CER had to take account of the decisions made by the Government on the funding model for Irish Water and a direction made under Section 42 of the Water Services (No. 2) Act in July 2014. This policy direction addressed a number of matters relating to domestic water charges including the provision of a free allowance of 30,000 litres of water supplied and waste water treated per annum for a primary residence on a public supply and a free allowance to cover the normal usage of water services by every child in their primary residence based on the same qualifying conditions as the child benefit allowance while customers with specific medical conditions which require increased water consumption will have their charges capped.
In its determination, the CER has decided that all customers will have their total water charges capped at the unmetered “assessed charge” for 9 months. The cap will apply from the start date of the next billing period after installation of the meter or 1 October 2014, whichever is the later.
In addition, the Government is putting in place further affordability measures to assist pensioners, people with disabilities and carers who are in receipt of the Household Benefits Package and this support has been further extended in Budget 2015 to cover all Fuel Allowance recipients who do not already receive the household benefits package. These measures are being implemented by the Department of Social Protection. Income tax relief will also be available at the standard rate in respect of water charges up to a maximum of €500 per household.
