I understand that the Deputy is referring in his question to the annual subsidy towards the operational costs of Group Water Schemes.
In late 2017, my Department conducted a review of Group Water Schemes’ subsidies. The review involved discussions with the National Federation of Group Water Schemes, the representative body for the Group Water Sector. Discussions concluded in December 2017, when I approved increased subsidy levels. The new subsidy arrangements, endorsed by a special delegate conference of the Federation on 13 December 2017, came into effect on 1 January 2018. Local authorities were advised by my Department of the increased subsidy levels on 19 December 2017 and detailed terms and conditions for the subsidy were subsequently issued by my Department to local authorities.
The terms and conditions allow for group water schemes to apply an excessive use charge on their domestic members where they are consuming above a household threshold (160 cubic meters/day) as well as a formal mechanism for schemes to reduce this household threshold amount (provided that it is not reduced to less than 115 cubic meters/day) if they are to avail of the subsidy.
The terms and conditions allows schemes to recoup some costs at 100% and others at 85%. If a scheme can demonstrate a higher domestic membership/usage, it may be entitled to a higher rate.
The changes implement the recommendation contained in the report of the Joint Oireachtas Committee on the Future Funding of Domestic Water Services (JOCFFDWS), endorsed by both Houses of the Oireachtas in April 2017, that there should be equity of treatment and equivalent financial support between households using public water services and those availing of private water services.
Additionally the Multi-annual Rural Water Programme provides capital funding opportunities for Group Water Schemes to, if suitably located, interconnect to and be taken in charge by Irish Water (Measure 4 of the multi-annual programme), or amalgamate with nearby Group Water Schemes forming a new larger entity that is more effective, including in their day-to-day running costs, through economies of scale (Measure 1 of the multi-annual programme).
Measure 3 of the multi-annual programme provides capital funding for schemes to undertake water conservation works to reduce their wastage of water, through carrying out, where necessary, replacement of defective water mains, thus enabling schemes to reduce their day-to-day running costs.
Separate to the initial review of Group Water Scheme subsidy levels and also in fulfilment of the JOCFFDWS recommendations, in April 2018, I established a Working Group to conduct a wider review of investment needs and rural water services. There is a two-strand approach to the considerations of the Working Group. Strand 1 is considering the composition and distribution of funding for the Multi-annual Rural Water Programme from 2019 up to 2021, while Strand 2 will consider the more complex longer-focus issues surrounding the long-term future resourcing of the Rural Water Sector.
