Frequently Asked Questions
Revisions to water charging structure
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What changes to the charging system has the Government announced?
Why has the Government made these changes?
What are the benefits of the revised system?
How will these changes affect the status of Irish Water as a commercial entity?
Domestic water charges
How much will people pay in water charges?
Who will be a customer of Irish Water?
Does the capping of bills for customers with medical conditions necessitating high water usage
still apply?
Who is liable for domestic water charges?
What payment options will be available to customers?
Will I be able to get a pre-paid meter like gas and electricity customers?
What happens if households do not respond to the Irish Water customer campaign?
What happens if domestic customers do not pay their water charges?
Can Irish Water reduce water supply or disconnect if people do not pay their water charges?
Will Irish Water have power to seek payment from employers or the Department of Social
Protection?
What free allowances are to be provided?
Why are households no longer getting the free allowance of 30,000 litres per annum?
What happens in situations regarding children going off to live in a flat when at college and
coming home at the end of the college year?
Will there be concessions for households with lead piping?
Will there be concessions for households on boil water notices?
Will there be concessions for households with hard water?
What is the tariff for a not permanently occupied dwelling (e.g. holiday homes)?
Will there be rebates for households moving from unmetered to metered charging?
Why is the rebate not being paid after 3 months as recommended by the CER?
How many dwellings will not be metered by the end of 2018?
What happens to households who do not receive a meter before the end of 2018?
What will happen to households on group water schemes?
Will mixed-use premises be charged for domestic water use?
Will mixed-use customers be entitled to rebates?
Why are mixed-use customers being billed twice?
How long will charges be capped for?
What domestic water charges rates will apply after 2018?
Irish Water customer application campaign
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What do customers who have already registered have to do now?
What should customers who have not registered yet do?
What happens if a household does not return Irish Water’s application form?
Will Irish Water ask households for PPS numbers?
What measures is Irish Water taking regarding PPS numbers it has already obtained?
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37. What reassurance can people get that all customer calls will be answered?
Non-domestic customers
38. What is happening to non-domestic customers of public water and waste water services?
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Other customer-related issues
Will there be supports for households in tackling customer-side leakage?
What is being done about the problem with lead exceedences in drinking water?
Will Irish Water be providing additional services for customers (e.g. plumbing)?
What do I need to do if I am moving dwelling?
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Water conservation grant
What households will be entitled to the €100 water conservation payment?
Why has the Government replaced the previously announced measures with this grant?
How will households receive this payment?
When will households receive this payment?
If I move dwelling within the year do I still qualify for a conservation grant?
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Meters
Why are we metering if there is a capped charge?
What can customers do to reduce water usage and lower bills?
How do you read the meter?
How can I proactively monitor my water usage when the meter is underground?
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Domestic metering programme
How is the domestic metering programme being rolled out?
Who is implementing the metering programme?
How can customers find out if and when they will be metered?
Will apartments be metered and when?
What is the cost of the domestic metering programme?
Will consumers have to pay for meters?
Why not invest the capital for water metering in water mains rehabilitation?
How will customers know if they have a leak?
Government water sector reform programme
What reforms are happening?
What is the timeline for remaining reforms?
Why is reform happening?
What will be the benefits of reform?
Why should people pay for water charges when taxpayers already fund it through central
taxation?
65. What is being done to secure efficiencies in Irish Water’s operations?
66. What reform progress has been made so far?
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Irish Water governance
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How is Irish Water accountable?
How will Irish Water’s governance structures be improved?
Who will make the appointments to the new board of Ervia?
Will Irish Water be privatised?
Will there be a referendum to keep Irish Water in public ownership?
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Irish Water operational issues
What deficiencies existed in operational matters under local authority responsibility for water
services?
What is Irish Water responsible for operationally?
How have operational matters changed?
What is Irish Water doing to increase water conservation?
What do annual service plans entail?
Have 2015 annual service plans been agreed?
Irish Water pay and Staffing
78. How many staff are employed by Irish Water?
79. How many staff are employed on water services in local authorities under the service level
agreements (SLAs)?
80. Will Irish Water staff receive ‘bonuses’ in 2014 or 2015?
Irish Water capital projects
81. What deficiencies existed regarding infrastructure under local authority responsibility for water
services?
82. What is Irish Water responsible for infrastructurally?
83. How has capital project delivery changed?
84. What is Irish Water doing to reduce leakage?
85. What level of investment will there be after 2016?
86. Are there any impediments to the taking in charge of estates?
Irish Water and regulation
87. What does economic regulation of Irish Water entail?
88. Has the Government overturned the regulatory process?
89. How is Irish Water environmentally regulated?
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Responding to customers
How will the customer centred focus be strengthened?
Who will be on the Public Forum?
Who will be responsible for investigating customer disputes?
How will Irish Water engage with elected representatives?
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Financing Irish Water
How is Irish Water funded?
How quickly will Irish Water go to capital markets?
Will Irish Water’s investment plans now be scaled back?
What is the Market Corporation Test?
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Revisions to water charging structure
1. What changes to the charging system has the Government announced?
The Government has reviewed the overarching water charges policy framework with a view to:

making it simpler and fairer,

providing more clarity and certainty to households, and

ensuring water charges are affordable for customers.
With these objectives in mind, the Government has decided on the following key measures:

The starting date for water charges is being put back from 1 October 2014 to 1 January 2015,
with first bills to issue from April 2015;

Capped annual charges are being set - the charges will be capped at €160 for single adult
households and €260 for all other households until end 2018, with specific legislative provision
to be made to allow for capped charges to continue to be set from 2019 onwards.

For the purpose of metered bills, the charge for water in/out is reduced to €3.70 per 1,000
litres (almost 25% lower than the previous subsidised rate);
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Households with either a water supply only or waste water only service will pay 50% of these
rates;
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Metered usage can lead to lower charges than the relevant cap;

the Children’s Water Allowance remains at 21,000 litres per annum and will apply to all persons
resident in the property aged under 18 (irrespective of whether the child qualifies for Child
Benefit), meaning children will continue to go free;

All eligible households that respond to Irish Water’s customer application campaign will receive
a water conservation grant of €100 per year;

Not permanently occupied dwellings will pay a minimum of €125 per year (€62.50 per service);
where meters are installed such dwellings may pay higher than the minimum where usage
exceeds €125 per year (€62.50 if one service) up to a cap of €260;

The legislation permitting the exchange of PPS numbers with the Department of Social
Protection will be repealed. The system is based on self-declaration and appropriate audit;
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While Irish Water is a fully publicly owned utility and the Government is firmly committed to it
remaining in public ownership, in order to address public concerns regarding privatisation by a
future Government, legislation will be introduced which would require any such proposal to be
put to a plebiscite of the people.
2. Why has the Government made these changes?
In September 2014, the Commission for Energy Regulation (CER) approved a water charges plan for
Irish Water following detailed scrutiny of Irish Water’s underlying costs and taking account of the
Government’s policy framework as outlined in the Water Charges Policy Direction 2014.
However, the water sector reform process to date has operated to demanding timelines that do not
reflect the task of moving to water services delivery by a single, public national utility in a very short
period of time. In advance of the completion of the metering programme, the charging regime was
overly complex, not well understood by the public, and has created uncertainty for customers
regarding their bills in 2015 and beyond. A simpler, fairer, more certain and more affordable
charging regime is required.
3. What are the benefits of the revised system?
Certainty: All households will know what their capped bills will be until the end of 2018, which is
particularly important for larger households or those with high usage due to medical needs.
Simplicity: There are only two capped charges for primary dwellings – one for single-adult
households, the other for all multi-adult households.
Affordability: The absolute maximum charge is €5 per week; for single households, it will be
approximately €3 per week. Households can manage their consumption to achieve a lower metered
bill. The annual water conservation grant of €100 will help eligible households to reduce their net
water costs now and in the future.
Encourages Conservation: With a meter, households have the opportunity to pay less than the
capped bill; with the conservation grant households can make changes with a view to lowering
charges; investment by Irish Water in fixing public mains and customers’ leaks during this transition
period will also help to conserve our water resources.
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4. How will these changes affect the status of Irish Water as a commercial entity?
One of the key benefits of the establishment of Irish Water as a commercial publicly-owned national
utility is its capacity to borrow “off the Government balance sheet”. This is required in order to fund
an accelerated programme of investment in upgrading our deficient water and waste water
infrastructure. In revising the manner in which Government subvention is provided to Irish Water,
particular attention has been paid to Irish Water’s capacity to act commercially. In this regard, over
50% of the utility’s income should come from customer revenue. However, ultimately, the
classification of Irish Water as a market corporation (therefore “off the Government balance sheet”)
will be a matter for Eurostat to decide. Eurostat is independent in their function and ultimately the
decision on the MCT rests with them.
As a commercial publicly-owned national utility Irish Water will be able to invest in an accelerated
programme of investment in upgrading our deficient water and waste water infrastructure. Similar
to ESB and other publicly-owned national utilities, Irish Water will be able to borrow to fund this
investment on the strength of its own balance sheet, assets and cash flows and the company’s
capital and operating expenditure does not impact on the exchequer’s deficit or debt figures.
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Domestic water charges
5. How much will people pay in water charges?
Household Type
Single Adult households with or
Capped
Annual
(Quarterly) Bill
€160 (€40)
Water
Conservation
Grant
€100
without children
€260 (€65)
€100
without children
not
Maximum charge
permanently
€125
€260
Not eligible
unless the
house is the
person’s
normal
primary
residence
The charges above are the capped charges. Households fitted with an Irish Water meter will have an
opportunity to reduce their bill. Metered bills will provide for a free allowance to cover each child’s
normal water/wastewater needs (21,000 litres per child), so that charges only apply to adults (those
18 and over) in households. The volumetric rate is to be reduced to €3.70 per 1,000 litres (almost
25% lower than the previous subsidised rate).
Households that register with Irish Water will, in the case of primary dwellings, be eligible for a €100
water conservation grant, payable through the Department of Social Protection. This payment is
being made available to support more sustainable use of water, as part of the Government’s
objective of achieving greater water conservation among households.
These tariffs will remain in place until 31 December 2018. In addition:

after a household is metered, if consumption for the first metered year is less than the capped
charge, the household will be due a once-off rebate on the difference between the capped
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€160
(€40)
occupied
Minimum charge
€60
(€15)
Multi Adult households with or
Dwellings
Net Cost
charge actually paid during the unmetered period (which could span more than one year) and
the amount which would have been paid through metered usage. This will be automatically
calculated by Irish Water and normally applied as a once-off credit to the customer’s account;
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where water is unfit for human consumption, a 100% discount will apply to the drinking water
portion of a customer’s bill for the duration of the restriction. Customers will continue to pay the
relevant charge for waste water treatment.
6. Who will be a customer of Irish Water?
Water supplier
Waste water
Irish Water customer?
Public mains
Public sewer
Yes
Public mains
Own treatment
Yes
Group water scheme
Public sewer
Yes
Group water scheme
Own treatment*
No
Private well
Public sewer
Yes
Private well
Own treatment*
No
*Septic tank or waste water
treatment system
All non-domestic customers of public water and/or waste water supplies have already become
customers of Irish Water.
7. Does the capping of bills for customers with medical conditions necessitating high water usage
still apply?
As all customers’ bills will be capped at the relevant charge, the requirement to cap bills for this
category of customer no longer exists. No person with a medical condition necessitating high water
usage who lives in a single adult household will pay more than €160 a year in water charges. No
person with a medical condition necessitating high water usage in other household types will pay
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more than €260 a year in water charges. Irish Water will continue to provide priority services for
those critically dependent on water for a medical condition.
The revised charging structure also removes the operational requirement on Irish Water to audit
customers who have registered for a capping of charges for medical purposes.
Irish Water will continue to offer special services for customers who require additional support
communicating with or receiving services from Irish Water for reasons such as advanced age,
physical, sensory, intellectual or mental health reasons.
8. Who is liable for domestic water charges?
All dwellings connected to the public water or waste water systems are liable for domestic water
charges and it is the occupier that is liable for paying domestic water charges. Under the Water
Services (No.2) Act 2013, it is presumed that the owner of a dwelling is the occupier unless proved
otherwise.
Irish Water is providing landlords with the opportunity to prove that they are not the occupier by
providing the tenant’s name. This will allow Irish Water to contact the tenant for registration
purposes and to bill the tenant. A tenant must register with Irish Water to avail of the water
conservation grant, to be billed accurately, and to avoid the default maximum charge (€260). New
legislation will place certain obligations on a landlord where tenant has not paid charges.
If a dwelling is unoccupied, the owner is advised to apply for the minimum charge for dwellings not
permanently occupied. Failure to respond to Irish Water’s customer application campaign will result
in a default charge of €260 per year.
9. What payment options will be available to customers?
A range of flexible payment options will be available. Irish Water will facilitate bill payment through
direct debit, electronic funds transfer, payment by cash at any retail outlet with a paypoint or
payzone sign, or a post office where a bill can be paid in full or part payments of a minimum of €5
can be made.
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10. Will I be able to get a pre-paid meter like gas and electricity customers?
As outlined above, Irish Water will provide a range of flexible payment options. Pre-pay meters only
function in situations where supply can be disconnected. This does not apply to Irish Water domestic
customers.
11. What happens if households do not respond to the Irish Water customer campaign?
Under the Water Services (No.2) Act 2013, Irish Water is obliged to charge customers connected to
the public water or waste water systems for services provided. Households who do not respond to
the campaign will receive a default bill for €260 per annum per dwelling. In addition, such
households will not be entitled to the €100 water conservation grant for their primary dwelling.
12. What happens if domestic customers do not pay their water charges?
The overall package of measures being put in place is designed to make water charges more
affordable. When it comes to payment, a range of easy pay options will be in place, including direct
debits, Electronic funds transfer, payment by cash at any retail outlet with a paypoint or payzone
sign or a post office where a bill can be paid in full or part payments of a minimum of €5 can be
made.
It is intended to legislate to remove the power to reduce the supply of water to dwellings where
water charges remain wholly or partly unpaid. However, in lieu of this, the following late payment
provisions shall automatically apply, unless the customer enters into a payment plan:
One Adult Household (capped at €160) - €30 will be added to any bill where outstanding payments
equate to the total annual payment and remain unpaid for 3 months or more. An additional €30 will
be added on every anniversary of the original add on date while the bill remains unpaid or a
payment plan has not been entered into with Irish Water. This provision applies to all annual
amounts that remain unpaid or where a payment plan has not been entered into with Irish Water.
Two Adult Household (capped at €260) - €60 will be added to any bill where outstanding payments
equate to the total annual payment and remain unpaid for 3 months or more. An additional €60 will
be added on every anniversary of the original add on date while the bill remains unpaid or a
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payment plan has not been entered into with Irish Water. This provision applies to all annual
amounts that remain unpaid or where a payment plan has not been entered into with Irish Water.
Example - Household with one occupant, which does not pay its bills for two consecutive years
Year 1
Year 2
Bill for year
€160
€160
Late payment fee for first year unpaid
€30
€30
Late payment fee for second year unpaid
€30
Total due following two years of non-payment
€220
€190
€410*
* Compares to €320 total amount which would have been paid if no late payment arises.

Provision will be made for the automatic creation of a statutory charge on the dwelling in
respect of unpaid water charges.

In the case of tenants in private rented accommodation, legislation will be introduced to insert
into all tenancy agreements/leases a deemed obligation on the tenant to discharge their liability
for water charges. On the changeover of a tenancy, the registration of a new tenant with Irish
Water would be conditional on all water charge arrears being discharged and, in the event of the
former tenant not discharging those arrears, the landlord would be entitled to withhold the
amount concerned from the tenant’s deposit and would be required to remit the amount
involved to Irish Water.

In the particular case of local authority tenants, where deposit arrangements do not apply,
where a customer is in arrears for more than 12 months and a late payment fee has accrued,
Irish Water, having first provided the customer with the opportunity to pay the arrears or enter
into a payment plan, will advise the local authority concerned of the amount of arrears and the
local authority will be required, by law, to recover the amount outstanding over a 12 month
period, and remit the amount involved to Irish Water.

Any customers who have unpaid water charges can be pursued through the Courts by Irish
Water for the sums due and a judgment may be obtained against the customer for the amount
due.
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13. Can Irish Water reduce water supply or disconnect if people do not pay their water charges?
No. It is intended to legislate to remove the power to reduce the supply of water to dwellings where
water charges remain wholly or partly unpaid. Irish Water is prohibited from disconnecting houses
connected to the public water supply in the event of charges being wholly or partly unpaid.
14. Will Irish Water have power to seek payment from employers or the Department of Social
Protection?
No, it is not proposed to provide for such a measure.
15. What free allowances are to be provided?
In the case of primary dwellings registered with Irish Water and where a meter is installed, a
Children’s Water Allowance of 21,000 litres per annum will be provided in respect of each resident
child under the age of 18 (irrespective of whether the child qualifies for Child Benefit). For
unmetered dwellings with children, the capped charge to apply is based on the number of adults in a
house (i.e. a single adult dwelling or a multi-adult dwelling).
16. Why are households no longer getting the free allowance of 30,000 litres per annum?
The Government, having reviewed the overall policy framework, has concluded that the subsidy
being provided is better geared towards providing clarity and certainty and ensuring that water
charges are affordable for customers, through the arrangements now being put in place involving
capped charges (€160/260) and a lower subsidised charge per litre of water (€3.70 per 1,000 litres –
almost 25% less than previously proposed).
17. What happens in situations regarding children going off to live in a flat when at college and
coming home at the end of the college year?
If a family home has two or more adults on a continual basis (i.e. both parents still live in the family
home), then the periodic moving in and out of other individuals has no effect on the charge as it is
capped at 2 adults. If there is one adult living in the family home, Irish Water should be notified of
the departure or return of an adult student if changes to occupancy are for durations of longer than
three months.
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18. Will there be concessions for households with lead piping?
Where a customer has been issued with a drinking water restriction notice in relation to lead, the
CER has determined that a 100% discount will apply to the water supply portion of a customer’s bill
for every day that the restriction lasts. Households will, where relevant, still be liable for the charge
for waste water services.
19. Will there be concessions for households on boil water notices?
Where water is unfit for human consumption, i.e. where a boil water notice has been issued, or
where a customer is subject to a drinking water restriction notice, affected customers will receive a
100% discount to the water supply portion of their bill for the duration of the restriction. Households
will, where relevant, still be liable for the charge for waste water services.
20. Will there be concessions for households with hard water?
No. Neither hard water nor the substances associated with hard water, such as lime, calcium and
magnesium, require the restriction of a supply nor do they make water unfit for human
consumption.
21. What is the tariff for a not permanently occupied dwelling (e.g. holiday homes)?
A minimum charge of €125 per year will apply for not permanently occupied dwellings using both
water supply and waste water services. The charge for dwellings connected to a single service will be
€62.50 per year. This applies to metered and unmetered dwellings. Such dwellings with meters
installed will pay €3.70 per 1,000 litres for usage above the equivalent usage for the minimum
charge. A cap of €260 per dwelling applies.
22. Will there be rebates for households moving from unmetered to metered charging?
If a dwelling is metered after 1 January 2015 and if a household’s usage for the first metered year is
less than the relevant capped charge, the household will be due a once-off rebate on the difference
between the charges paid for the unmetered period and the charge that would have been paid
through metered usage. This will be automatically calculated by Irish Water after a full year of
metered usage and normally applied as a once-off credit to the customer’s account.
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23. Why is the rebate not being paid after 3 months as recommended by the CER?
The previous proposals in relation to rebates were set in the context of a complex regime of
unmetered/assessed charges based on occupancy levels. Under the previous proposals, assessed
charges could have varied significantly from actual metered charges, thus having a substantial
financial impact on certain households. The new streamlined arrangements ensure that no
household will pay more than €260 per year - €5 per week.
24. How many dwellings will not be metered by the end of 2018?
Approximately 1.1 million households will be metered by the end of 2016. Phase 2 will commence in
2017, subject to approval by the CER. The number of dwellings that may be covered in this phase
has yet to be established.
25. What happens to households who do not receive a meter before the end of 2018?
Irish Water will be metering all dwellings where it is technically feasible to do so before the end of
2018. The CER will set the charges for dwellings that are unmetered on a fair and reasonable basis,
taking into account consumption data from metered dwellings. The CER will also consider proposals
from Irish Water for metering programmes post-2018 based on evolving technology and the roll-out
of the longer term programme of replacement of shared backyard services.
26. What will happen to households on group water schemes?
Group water schemes set their own charges and are not regulated by the CER. There are a number
of types of group schemes –

private schemes, which have no interaction with Irish Water, and

public schemes, which receive their water in bulk from public supplies, but manage their
own networks and set charges for their customers; these schemes will remain non-domestic
customers of Irish Water for the bulk purchase of water and current tariff arrangements, as
applied by local authorities prior to 1 January 2014, will continue until non-domestic charges
are reviewed by the CER.
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There are also some group schemes, which have no management structures, and have had
arrangements with local authorities, whereby the scheme members were effectively treated as
public water users, with the local authority billing where appropriate and managing the network.
These arrangements will continue to be applied by Irish Water unless the scheme members decide
to fully reconstitute the group scheme.
The Department of the Environment will work with the group water sector to produce a new
investment programme lasting until the end of 2018 and to revise subsidy arrangements so they are
aligned as far as possible with the approach to subsidy for public water schemes, but tailored to the
particular circumstances of the group water sector. The Department has agreed the following
principles, by which to conduct the subsidy review, with the National Federation of Group Water
Schemes:

Fair treatment between drinking water consumers in the public and group sectors, taking
into account the inherent differences in structure, funding and organisation between the
sectors including the ability of individual schemes to set the price of water based on their
own local circumstances;

Recognition of particular cost structures regarding in relation to the extent of networks in a
rural environment with dispersed populations and the variation between publically sourced
and privately sourced (DBO and Non-DBO) schemes;

The Department continuing to recoup local authorities based on subsidy claims from group
water schemes;

Subsidies continuing to be tied to conditions which support customer charters, compliance,
and optimal management and operational practices in the sector;

Ensuring that the combination of capital grants and operational subvention provides
schemes with the capacity to sustain drinking water quality improvements;

Arrangements that are as straightforward as possible recognising the scale and
administrative capacity of the sector; and

Promotion of water conservation and source protection.
Households in the group water sector who respond validly to the Irish Water customer registration
campaign will be eligible for the €100 water conservation grant.
27. Will mixed-use premises be charged for domestic water use?
Yes. Mixed-use customers will receive separate bills for domestic use and the non-domestic use. The
charging arrangements for the non-domestic component of the customer’s usage will remain the
same as operated by local authorities in 2013, until reviewed by the CER. Mixed-use customers will
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be charged for the domestic component of their usage based on occupancy. For the domestic
component, single adult households will pay a maximum of €160 per year; multi-adult households
will pay a maximum of €260 a year. Mixed-use dwellings that register with Irish Water will be eligible
for the €100 water conservation grant.
Mixed- use customers
Charging Regime
Water
Conservation
Grant
Non-Domestic Account
A standing charge and metered usage
Same as outlined until
apply. The total charge is calculated as the
the CER decisions on
meter read less a domestic allowance for
non-domestic charges.
Not applicable
domestic usage.
Domestic Bill
A capped charge for single adult or multi-
€160/€260 per year
€100
adult household, as appropriate
Combined Charge not more than the actual metered amount
28. Will mixed-use customers be entitled to rebates?
The domestic water charge of a mixed-use dwelling will be subject to the relevant capped charge for
domestic customers depending on the household type. Where total metered usage would lead to a
lesser domestic charge than the relevant capped domestic charge, then that customer will be due a
rebate on the same terms as other domestic customers. The standing charge for the non-domestic
service would still apply.
29. Why are mixed-use customers being billed twice?
Mixed-use customers are dual customers of Irish Water – domestic and non-domestic. Non-domestic
bills are still issued by local authorities on behalf of Irish Water, whilst domestic bills will be issued by
Irish Water. Until non-domestic customer billing systems migrate from local authorities to Irish
Water, non-domestic bills will continue to be billed by local authorities.
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30. How long will charges be capped for?
The capped charges of €160 for single adult households and €260 for all other households which are
being set now will apply until end 2018. This will allow sufficient time for the metering of all
properties where it is technically feasible. During this period further data on consumption patterns
for different household types will be gathered to inform future pricing arrangements. Further cost
efficiencies will have also been secured. Specific legislative provision will be made to allow for
capped charges to continue to be set by Government, with exact charges to be set by the CER from
2019 onwards. This Government is committed to affordability caps into the future.
31. What domestic water charges rates will apply after 2018?
Domestic charges will be capped at the levels of €160 and €260 for single adult and multi-adult
households. The volumetric charge is €3.70 per m³ during the period to 2019.
The Government is bringing forward legislation to ensure that water charges remain affordable
through the setting of capped charges and /or allowances from 2019 onwards. The CER will set the
domestic charges from 2019, taking account of caps/allowances set by Government and the
Government determination for charges to remain affordable.
The Minister for the Environment,
Community and Local Government will therefore continue to provide funding to influence the
average domestic water charge.
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Irish Water customer application campaign
32. What do customers who have already registered have to do now?
For now, there is no need for customers who have already responded to do anything.
Some
households may need an opportunity to amend their details in order to take account of the fact that
all children under the age of 18 will now qualify for the child allowance, rather than just those
children under-18 in receipt of Child Benefit, as was previously announced. In January 2015, Irish
Water will afford households the opportunity to amend their application, where necessary.
However, if households have any questions regarding their own registration, they can contact Irish
Water on +353-1-707 2824 or Lo Call 1890 448 448.
33. What should customers who have not registered yet do?
To avail of the new arrangements and to receive an accurate first bill, customers are advised to
register with Irish Water by 2 February 2015. Customers can continue to register after this date but
an accurate first bill is not guaranteed. Customers who have not previously responded can register
with Irish Water:

online, from 19 November 2014, at www.water.ie using the application number and pin
originally provided by Irish Water;

by returning the revised application form (available to download at www.water.ie from 19
November or by calling 1890 448 448; form will shortly be available at your local post office
also);

by phone from Monday 24 November 2014 (Ph: 1890 448448 or 01 707 2824, lines open
from 8am-8pm, 7 days a week).
34. What happens if a household does not return Irish Water’s application form?
Households now have a further opportunity to register with Irish Water, including those who have
misplaced their application packs. If a household fails to register, it will receive a default quarterly
bill of €65, amounting to €260 per year. In addition, a household will not be eligible for the €100
annual water conservation grant.
18
35. Will Irish Water ask households for PPS numbers?
No.
The legislation permitting the exchange of PPS numbers with the Department of Social
Protection will be repealed. The new arrangements are based on self-declaration and appropriate
audit.
In order to receive the €100 water conservation grant, customers will be asked by the Department of
Social Protection for PPS numbers to validate payment. The detailed arrangements for the operation
of the scheme are being developed by the Department of the Environment, Community and Local
Government and the Department of Social Protection, with a view to it being operational in the
second half of 2015. To be eligible for the grant, which will be for primary dwellings, householders
must have completed a valid response to the Irish Water registration campaign. The Department of
Social Protection will engage with the eligible group to seek necessary PPS numbers and bank details
before making payment. The Department is the originator and custodian of PPS numbers; this
process, therefore, is solely for verification purposes.
36. What measures is Irish Water taking regarding PPS numbers it has already obtained?
In compliance with the requirements of the Data Protection Acts, Irish Water will delete PPS data
already collected during the customer registration process to protect customers’ data. Irish Water
has developed a protocol in consultation with the Office of the Data Protection Commissioner to
address this data deletion exercise. The implementation of this protocol will be subject to
independent verification, in accordance with parameters to be established in consultation with the
Office of the Data Protection Commissioner.
Irish Water has consistently stated its commitment to complying with all data protection legislation
requirements and has been engaged with the Office of the Data Protection Commissioner on an
ongoing basis throughout the customer registration process.
37. What reassurance can people get that all customer calls will be answered?
Irish Water anticipates that it will receive a high volume of customer calls over the next few weeks
and has put in place significant additional resources to deal with an expected call volume of circa
16,000 calls per day from 19 November and 20,000 per day from 24 November. However, in the
event that there is an abnormally high level of call volumes above that anticipated, customers may
19
experience delayed call response times and Irish Water requests customer patience in dealing
with this.
Non-domestic customers
38. What is happening to non-domestic customers of public water and waste water services?
Non-domestic users of public water and waste water services are now customers of Irish Water.
Irish Water is currently charging non-domestic customers at the same tariffs as those applied by
local authorities in 2013. The CER will publish a timeline for the establishment of an enduring tariff
framework for non-domestic customers by the end of Q4 2014.
20
Other customer-related issues
39. Will there be supports for households in tackling customer-side leakage?
As domestic properties are being metered, Irish Water is now able to identify potential leaks on the
customer side. While the legal position remains that customers are responsible for water piping in
their property and within the boundaries of their property, customers will be supported in
addressing such leakage through the Government-funded ‘first fix free’ scheme. The scheme will
cover leaks from the boundary of the property to a point as close as possible to the dwelling (but will
not include leaks internal to the dwelling or other buildings on the property). The ‘first fix free’
scheme is estimated to cost some €51 million to the end of 2016.
The precise rules around the scheme have to be approved by the CER. Irish Water has been
undertaking a pilot ‘first fix free’ project to inform the detailed submission on this issue that has
been submitted to the CER recently. The CER is expected to consult on this, and a scheme will
commence from January 2015.
While customer charges are capped, it is important to find and fix leaks 
to afford customers the opportunity to achieve lower metered bills than the relevant capped
charge; and

to reduce water usage, with benefits to overall operational costs and capital investment.
40. What is being done about the problem with lead exceedences in drinking water?
Irish Water has been pro-active in identifying lead risk areas, with increased monitoring across the
system. Replacement programmes are under way in areas with high levels obtained in samples this
year in Ballynanty, Limerick and St Brendan's Park, Tralee. Ortho-phosphate dosing is being
commenced shortly in the Limerick plant (Clareville water treatment plant), with monitoring for
effectiveness to follow.
In cases where elevated levels are reported, households are advised by Irish Water, and both the
EPA and HSE are notified. Where the HSE considers that monitoring has identified a significant risk to
health, it may require that a drinking water restriction notice is applied, advising occupants that they
should abstain from drinking the water. Where this is due to the presence of public network side
21
lead piping, a restriction notice will lead to a 100% discount on the cost of water provided (waste
water charges will continue to apply).
A detailed Lead Strategy Implementation Plan has been submitted to the EPA and the HSE for
consideration and will be published when approved by both bodies.
41. Will Irish Water be providing additional services for customers (e.g. plumbing)?
Householders remain legally responsible for pipes and systems in their premises and from the
premises to the property boundary. Householders normally engage their own plumbers or builders
to address related problems on their property. This will remain the position, and other than services
up to the meter and the first free fix scheme, Irish Water will not be offering such additional
services (accepting that there may be circumstances where services will need to be provided in the
wider public interest on grounds of public health or imminent environmental pollution).
42. What do I need to do if I am moving dwelling?
Customers are advised to contact Irish Water directly before they move dwelling. Where a meter
has been installed the customer will be advised to note the meter reading on the day of moving out
so that they can be charged appropriately. Customers will be liable for water charges at the new
address from the date of occupation.
22
Water conservation grant
43. What households will be entitled to the €100 water conservation payment?
To promote sustainable use of water and to enhance water conservation in households, the
Department of Social Protection will administer, on behalf of the Department of the Environment,
Community and Local Government, a €100 water conservation grant for households (primary
dwellings) that complete a valid response to Irish Water’s customer registration process.
While Irish Water, as part of the transition phase, will have a ‘first fix free’ scheme to fix customer
leaks, some leakage may be internal to the house, so the €100 annual water conservation grant,
which they can use to address leaking cisterns, change dripping taps etc. Equally, households can
use the grant towards the costs of water butts or installing dual flush toilets or rain water systems,
de-sludging their septic tank or maintaining their well to ensure it is operating efficiently.
The water conservation grant replaces the tax rebate and social protection measures previously
announced, as it is a more straightforward means of addressing water issues for all households on
equal terms and will reduce households’ outlay on water services both now and in the future.
44. Why has the Government replaced the previously announced measures with this grant?
The grant is being paid on a universal basis to all householders in respect of their primary
dwellings. It is important that all households have an equal chance to reduce their water
consumption in their primary dwellings. This is fairer as it excludes no primary residences. As
the Department of Social Protection will administer the grant the process is streamlined and
clearer for householders. This approach has a number of policy advantages:

making water charges more affordable for lower income groups;

conservation ensures a better use of our water resources and avoids unnecessary or premature
expansion of water treatment plants;

it is environmentally sustainable and protects our water environment which is to the benefit of
all citizens.
23
45. How will households receive this payment?
Households that provide Irish Water with all the relevant details during the customer application
campaign will be informed by the Department of Social Protection in due course in relation to the
water conservation grant. Households will be required by the Department of Social Protection to
provide certain information, including a PPS number, as is normal, as part of this process and will
have to confirm that the house concerned is their primary dwelling. Details will be announced in due
course.
46. When will households receive this payment?
Eligible households can expect to be able to apply for the grant from September 2015, and annually
thereafter.
47. If I move dwelling within the year do I still qualify for a conservation grant?
Full details in relation to the payment will be provided by the Departments of Social Protection and
Environment, Community and Local Government in due course.
24
Meters
48. Why are we metering if there is a capped charge?
Meters help find leaks: Meters are part of the essential infrastructure of a well-managed water
utility. It is only through the metering of dwellings that we can fully understand our water demand
requirements, where water is being lost through the system, and tackle leakage on both the public
side and the customer side of the distribution system.
Meters help customers achieve lower bills: The meters will allow customers to alter their
consumption patterns to achieve bills below the capped charges.
49. What can customers do to reduce water usage and lower bills?
Customers will be advised through the Irish Water website and by leaflets issued with bills of
measures which they can take to reduce usage. These will include simple water saving tips, advice
regarding frequent sources of leakage in the home (WC cisterns, tank overflows), simple rainwater
capture for external garden use.
Customers will receive details of the metered usage for the billing period, where meters are
installed. This will enable them to assess their usage compared to the average estimates computed
from Irish Water data from surveys, used in submissions to the CER.
Irish Water will identify likely leakage candidate properties from metered use indicators, including
high average daily use and recorded continuous nightflows exceeding a trigger level. Identified
property occupants will be contacted and advised of the possible leak. The initial steps in the ‘first fix
free’ scheme may then be initiated.
50. How do you read the meter?
25
Water companies read meters and bill customers in cubic metres and these are the black dials on
the meter. The red dials show the decimal places, i.e. 1/10th of a cubic metre, 1/100th, and 1/1000th.
A typical family home (2 adults and 2 children) would be expected to use approximately 2.5 cubic
metres of water a week, but this can vary significantly based on the types of water-using devices in
the property and the behaviour of customers.
51. How can I proactively monitor my water usage when the meter is underground?
Water meters will be read remotely using ‘drive-by’ technology. Irish Water meters feature
Automatic Meter Reading (AMR) technology where a transmitter periodically sends your meter
reading to a receiver unit in meter reading vehicles. This means Irish Water won’t usually need to
open the meter box or lift the meter lid to take a meter reading as it can be read remotely. Irish
Water’s meters maintain a record of the reading at midnight on the last day of each month. This
provides Irish Water with an accurate month end/month start cumulative consumption on an ongoing basis. Irish Water will collect these month-end records each time a scheduled drive-by reading
is carried out as part of the normal read cycle, usually every three months.
As part of the meter reading process the meter will indicate if there is a potential leak in the
customer’s property. Notification regarding potential leaks on customer properties will be included
in this normal billing cycle whereby Irish Water will notify customers by letter where they suspect
there may be a leak at the property. Where a customer wishes to monitor their consumption more
frequently they may open the meter box cover and read the meter.
Householders can use the water meter to help identify potential leaks. This is best done by waiting
for a period when the house will be unoccupied for a couple of days and reading the meter
immediately before and after. A tap dripping at 6 litres per hour would register 0.3 cubic metres
(300 litres) on the meter in just over 2 days.
Customers can also obtain advice on sustainable water usage from Irish Water’s website:
www.water.ie
26
Domestic metering programme
52. How is the domestic metering programme being rolled out?
There will be two phases of the domestic metering programme. ‘Phase One’ of the programme
began in August 2013 and will be completed by the end of 2016. Approximately 33,000 meters are
installed, on average, every month. To date, some 495,000 meters have been installed. 875,000880,000 dwellings will be installed by the end of 2015, including 25-30,000 apartments. By the end
of 2016, 1.1 million homes will be metered. The 1.1 million households will represent over 80% of all
domestic customers and will include 48,000 apartments that can be easily metered.
‘Phase Two’ of the programme relates to metering dwellings that are technically difficult to meter
(e.g. apartments). Irish Water has carried out a study on these matters, which will form the basis of
a proposal to be submitted to the CER for a ‘Phase Two’ programme to commence in 2017.
Currently, there is no figure available for the possible number of dwellings to be metered under the
‘Phase Two’ programme.
53. Who is implementing the metering programme?
Irish Water has established a project team of engineers and construction professionals to manage
and supervise the metering programme. This team maintains a national overview of progress with
teams in eight regional centres. Four regional main contractors covering eight meter regions were
appointed by Irish Water following a public tendering process. These contractors have responsibility
for appointing sub-contractors who are responsible for recruiting suitably qualified staff to carry out
the work. The employment of subcontractors is a matter for each regional contractor. Sub-contracts
are of a size manageable at local level, and reflect the Department of Finance policy in respect of
SMEs (Circular 10/10, “Facilitating SME Participation in Public Procurement”, dated 13 August 2010).
However, contracts must also be sufficiently large to allow optimal efficiency.
As of the end of September 2014 in excess of 1,300 people were employed by the Regional
Contractors. The social inclusion commitment that forms part of the contracts for the metering
programme requires that a minimum of 25% of the jobs be allocated to people on the live register,
27
small businesses and school leavers/graduates gaining employment. In all cases, the Regional
Contractors are exceeding these social inclusion measures.
Date
%
of
employees
from SME’s
30/09/2014 53%
% of employees from %
of
employees
unemployment
apprentices/graduates/school
register
leavers
21%
10%
Under the terms of the metering programme, individual operatives are required to have appropriate
and specific training in meter box installation and hygiene awareness.
54. How can customers find out if and when they will be metered?
The current phase of the metering programme involves installing meters in line with survey
information provided by the Local Authorities. Information on installations is released at least two
weeks before it occurs. Each household that is due to get a meter will receive an information pack
explaining the installation of the water meter. At least two days before the installation, each
household will receive a further communication confirming the timeframe within which the water
meter will be installed.
55. Will apartments be metered and when?
Up to 48,000 apartments that are suitable for metering will be metered before the end of 2016. Irish
Water will make proposals to the CER on future phases of the domestic metering programme.
Capped charges will continue to apply for apartments that are unmetered.
56. What is the cost of the domestic metering programme?
The cost for the supply and installation of meters is €539 million ex VAT. An additional €19 million
has been allocated for the costs of extending ‘Phase 1’ of the programme to include up to 48,000
apartments that are suitable for metering. The costs for ‘Phase 2’ of the metering programme will
be reviewed by the CER as part of the examination of Irish Water’s costs and capital plans for 2017
and 2018.
28
57. Will consumers have to pay for meters?
There is no upfront charge for water meter installations. The metering programme is funded through
borrowing on commercial terms from the National Pension Reserve Fund and will be repaid over
time. These costs are factored into Irish Water costs which were reviewed by the CER .
58. Why not invest the capital for water metering in water mains rehabilitation?
Greater short- and long-term benefits will accrue from investment in the metering programme than
investing in rehabilitation alone.
Metering helps identify customer-side leakage, which it is
estimated accounts for some 10% of overall leakage. Metering will identify leaks eligible for fixing
through the ‘first fix scheme’, which will significantly reduce this element of the overall national
leakage. Metering will also ensure greater awareness of leakage within the network, thus allowing
Irish Water to make more targeted improvements and increase operational efficiency.
With metering, customers will have greater control over their water charges bills through monitoring
of consumption and any customer-side leakage. Irish Water will also use metering data to provide
customers with usage data on their bills.
59. How will customers know if they have a leak?
All Irish Water meters have ‘leak alert’ technology which reports where there is a constant flow of
water through the meter over a defined period of time above a threshold value. Irish Water can also
identify very high users from meter data. Where this occurs, Irish Water will proactively notify
customers by letter, informing them that there may be a leak at the property and providing them
with advice on how to check for leaks. Where the customer cannot identify the source of the leak
they will be requested to contact Irish Water to arrange a free leak investigation survey. Based on
the current data from the metering project approximately 11% of customers have a continuous flow
of water through their meter, suggesting a possible leak. However, initial trials conducted by Irish
Water showed that over 50% of these were attributable to internal plumbing issues e.g. faulty
cisterns.
29
Government water sector reform programme
60. What reforms are happening?
Based on commitments in the Programme for Government, and the 2010 Memorandum of
Understanding between the previous Government and the EC-ECB-IMF for a Programme of
Assistance (2010-2013), the Government is implementing a water sector reform programme based
on three central actions:
 establishment of Irish Water as an independent, state-owned company within the Ervia Group
(formerly Bord Gáis Éireann), based on a public utility model;
 introduction of a new sustainable funding model, to support much needed investment in water
infrastructure, including the introduction of usage-based domestic water charges; and
 independent economic regulation of water services, assigned to the Commission for Energy
Regulation (CER), which has a range of functions in relation to water charge tariffs, protecting
customers’ interests, and scrutinising and approving Irish Water’s costs and ‘water charges plan’.
61. What is the timeline for remaining reforms?
Quarter 4 2014:

The CER to publish a timeline for the establishment of an enduring tariff framework for nondomestic customers.
Quarter 1 2015:

January: Water charging commences.

‘First fix free’ scheme to commence.
Quarter 2 2015:

April: households begin receiving their first bills.
2015:

Irish Water expected to complete its first 25 year water services strategic plan (to be approved
by the Minister for the Environment, Community and Local Government).

The transfer of water services assets and liabilities from local authorities to Irish Water on a
phased basis to commence.
30

Implementation of ‘Transformation Plan 2014-2017’ agreed between Irish Water and the CCMA/
Water Services Transition Office. Agreement contains initiatives and measures to standardise
and improve operations, asset management, customer service, procurement improvement, and
assets data intelligence. The SLAs between Irish Water and the local authorities will evolve on a
phased basis over the transition period as Irish Water moves to an organisational model
appropriate for a utility setting.
62. Why is reform happening?

Water and waste water services are expensive and require increased infrastructural investment.
The current funding situation of only approximately 15% of costs borne directly by users is
unsustainable. A major increase in infrastructural investment is needed.

Irish Water is able to deliver services more efficiently and with greater economies of scale than
31 local authorities could. The utility can manage operations and plan infrastructure with a more
national approach, and leverage third party borrowing for capital investment.

Through the Memorandum of Understanding agreed between the previous Government and the
EC-ECB-IMF in 2010, the Government is obliged to introduce domestic water charges. The
Programme for Government commits to introducing a fair funding model to deliver clean and
reliable water and establishing a new State-owned utility to take responsibility for water
infrastructure.
63. What will be the benefits of reform?
Public:

Security of quality, drinking water supply: vital for public health, with greater supply capacity
needed due to a growing population, economic recovery and climate change.

Improved waste water treatment: protecting public health and the environment by reducing
waste water pollution into water bodies.
Economic:

Increased economic competitiveness: security of water supply will help attract water-intensive
industries such as ICT, pharma-chem and agri-food to Ireland as more countries face water
shortages. These sectors are estimated to support well over 200,000 jobs dependent on water
intensive processes.
31

Supporting employment: Increased infrastructural investment should create additional
employment in construction and related sectors. €500 million a year sustains approximately
4,000 jobs during construction. Considerable jobs are being sustained through the domestic
metering programme and the Irish Water call centre.

Innovation and enterprise: increased focus on water management could help Irish enterprises
tap into a growing global water sector, predicted to be worth $1 trillion by 2020. The European
water sector alone contains approximately 9,000 SMEs.
Financial:

Improved public finances: unlike traditional Exchequer spending and borrowing for water
services, Irish Water’s expenditure and borrowings are not expected to be classified on the
Government accounts.

Establishment cost savings: estimated savings of €87 million through establishment of Irish
Water within the BGÉ (now Ervia) group rather than a ‘greenfield’ establishment.
Environmental:

Greater environmental sustainability: metering-based charges expected to reduce consumption
over time, whilst the proposed ‘first fix free’ policy will significantly reduce customer-side
leakage.

Lower greenhouse gas emissions: more focus on sustainable energy use such as Irish Water’s
current renewable and efficient energy initiatives aimed at reducing costs by 33% by 2020.
Customer:

Independent economic regulation will protect Irish Water’s customers and incentivise Irish
Water to improve its performance and increase efficiency.
64. What is being done to secure efficiencies in Irish Water’s operations?
Irish Water’s operational costs have been carefully examined by the CER, which has set demanding
requirements on Irish Water to reduce its operating costs by 13.5% during 2015-2016, including a 7%
annual efficiency challenge. The capacity to achieve operational savings through the single national
utility model on which Irish Water is based is already being seen – for example, Irish Water has
achieved €12m savings in 2014 through standardised procurement of goods and services. The
Regulator has also insisted on a 7% annual capital efficiency challenge on certain capital costs.
32
Irish Water’s costs will again be reviewed for the post-2016 period, and the Regulator will be
examining the scope for further efficiency savings. Irish Water, under the stewardship of the new
unitary Ervia Board, will be proactively preparing for this process by re-examining all of its
operational costs in detail to identify areas where further efficiencies can be achieved.
65. Why should people pay for water charges when taxpayers already fund it through central
taxation?
Historical under-investment under the existing model means that we have a water services system
which is failing both customers and tax-payers and this is no longer tenable. The Exchequer, put
simply, cannot afford the level of investment required to bring our systems up to date which runs to
billions. The Government has agreed on a funding model that will allow subvention of Irish Water to
help the public offset some of the direct cost of funding water services, whilst also designing the
model in a way that allows Irish Water to operate commercially. The new funding model, which
includes domestic water charges, allows us to address these legacy issues and provide new
infrastructure for the future.
66. What reform progress has been made so far?
Significant progress made including:

establishment of Irish Water, the new national water services authority, and the transfer of
water services functions from local authorities to Irish Water on 1 January 2014, leading to ;
o
Improved asset management, including a new approach to capital delivery from Irish
Water;
o
The commencement of SLAs between local authorities and Irish Water on 1 January
2014, and agreement on a three year transformation plan (2014-2017) to improve
water services;
o
Irish Water becoming the main contact point since 29 April 2014 for customer queries
and reports of water supply outages through its customer call centre;
o
€12 million saving by Irish Water in 2014 through standardised procurement of goods
and services;

publication by Irish Water of its proposed Capital Investment Plan 2014-2016, with over 386
individual projects and a range of sub-programmes valued at €1.77 billion;
33
o
Increased investment in water infrastructure - €350 million expected to be spent in
2014, increasing by an average of €100 million per annum in 2015 and 2016;

metering underway in most parts of the country (Kildare, Kilkenny, Kerry, Cork, Meath, all four
Dublin local authorities, Limerick, Laois, Tipperary, Mayo, Roscommon, Wexford, Sligo, Leitrim,
Carlow, Westmeath, and Offaly).
o
495,000 meters installed through the domestic metering programme to date;
o
approximately 1,300 jobs sustained through the metering programme and 500 jobs
through the Irish Water call centre;
o
approximately 84% of jobs sustained through the national metering programme
obtained by those in one of three ‘social inclusion’ categories (unemployed; employees
of SMEs; graduates/school leavers/apprentices), exceeding the Government’s target of
25%.

the commencement of independent, economic regulation by the CER, including public
consultations on major issues such as customer protections and operational costs.
34
Irish Water governance
67. How is Irish Water accountable?
Oireachtas: The Water Services Act 2013 provides that Irish Water’s annual report and accounts are
to be laid before each House of the Oireachtas.
Irish Water has also established an information service for elected representatives’ queries in
relation to operational matters.
Irish Water is also covered by Freedom of Information legislation.
Minister: Irish Water is required to submit an annual report on the performance of its functions each
year to the Minister for the Environment, Community and Local Government and to the Minister for
Communications, Energy and Natural Resources. A range of Ministerial consent requirements apply,
common to commercial State bodies generally.
Irish Water’s 25-year water services strategic plans will have to be approved by the Minister for the
Environment, Community and Local Government.
Regulation: The utility is accountable to the CER in terms of economic regulation, including in
relation to Irish Water’s water charges plans and its capital investment plans. Irish Water is
accountable to the EPA in terms of environmental regulation.
In making its capital investment plans, Irish Water will consult with the EPA, regional authorities and
planning authorities for whom the plan is relevant. Irish Water must take account of:
 its 25-year water services strategic plan;
 river basin management plans in force;
 local area and county development plans;
 regional planning guidelines;
 strategic development zones; and
 moneys available to Irish Water for infrastructural investment.
The CER will implement a framework for the prioritisation of capital expenditure projects.
Customer: The Government will establish a Customer Forum on a statutory basis, drawing
representation from paying households and businesses to provide a more structured framework for
engagement between Irish Water and its customers on key service issues.
35
68. How will Irish Water’s governance structures be improved?
The Government has initiated a number of measures to improve the governance of Irish Water:
 It is establishing a single unitary board, with new members chosen for their particular
competence and expertise. Expressions of interest from people who consider they have the
skills required for membership of the Board will be sought through the stateboards.ie
website operated through the Public Appointments Service. Appointments will also take
account of advice from NewERA in light of their advisory role on such matters under the
National Treasury Management Agency (Amendment) Act 2014.
 The board will be mandated to ensure that (a) it has a strong focus on improving service and
investing in infrastructure and (b) that the organisation is demonstrably customer focused.
 Enhanced external arrangements are needed to ensure this happens. Customers themselves
are best placed to articulate what customers want, both now and in the future, from a
public water utility. Therefore, the Government will establish a Customer Forum on a
statutory basis, drawing representation from paying households and businesses, to engage
with Irish Water on these matters in a more structured way.
69. Who will make the appointments to the new board of Ervia?
The Government will make appointments to the board of Ervia after a call for expressions of interest
from people who consider they have the skills required for membership of the board. This call will be
advertised through the stateboards.ie website, operated through the Public Appointments Service
and will also take account of advice from NewERA in light of their advisory role on such
appointments under the National Treasury Management Agency (Amendment) Act 2014.
70. Will Irish Water be privatised?
The Government has consistently stated that the supply of water and waste water will remain in
public ownership. This principle was enshrined in the 2007 Water Services Act and reaffirmed in the
Water Services (No. 2) Act 2013. The 2013 Act prohibits the shareholders of Irish Water - the
Minister for the Environment, Community and Local Government, the Minister for Finance, and the
board of Irish Water - from disposing of their shares.
The Government believes that public
ownership of water services is the will of the Irish people and proposes to legislate to ensure that if
36
any future government sought to change this, it would be required to put the matter before the
electorate through a plebiscite.
71. Will there be a referendum to keep Irish Water in public ownership?
The Government is committed to the continued public ownership of the national water and waste
water system and proposes to legislate to ensure that if any future government sought to change
this, it would need to conduct a plebiscite on the matter.
37
Irish Water operational issues
72. What deficiencies existed in operational matters under local authority responsibility for water
services?
Few economies of scale existed in a system in which 34 local authorities delivered water services,
thus driving operating costs higher than was necessary. Operating expenditure per connection, for
example, was more than twice the average of UK water companies.
73. What is Irish Water responsible for operationally?
On 1 January 2014, Irish Water became the national water services authority, responsible for:

operation and maintenance of water abstraction, impoundment, treatment or supply and
distribution;

management of leakage levels within water networks;

dealing with customer and elected representatives queries;

management of new connections to water and waste water networks of minor and major
incidents;

compliance with environmental, health and safety requirements;

provision, operation or maintenance of sewers and waste water collection and treatment
facilities;

water and waste water quality monitoring;

billing domestic and non-domestic customers of public water and waste water services;
It also became responsible for assessing:

the adequacy of current water and waste water infrastructure ;

the future needs for water and waste water infrastructure nationally to meet the needs of all
consumers and to facilitate national economic development objectives;

developing and implementing plans to meet the identified future needs for water and waste
water infrastructure and service.
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Rural water functions relating to inspection of private waste water treatment systems and
monitoring of group water schemes remain with local authorities.
74. How have operational matters changed?

All water services functions (apart from those concerning group water schemes and inspection
of individual waste water treatment systems) have transferred from the 31 local authorities to
Irish Water.

Since 29 April 2014, the Irish Water customer contact centre has been the main contact point
for customer queries and for those who wish to report water supply outages.

Local authorities are conducting certain water services such as operations and maintenance of
plants on behalf of Irish Water through 12 year SLAs. SLAs contain specific measures to support
the move to the utility model by end 2017 and towards continuous improvement in the quality
of water services and the delivery of operational efficiencies in the system. An example of this is
the new, standardised, digital approaches towards work and asset management, procurement
and inventory management capability.

As well as inbuilt reviews of the SLA after two and seven years, there are annual plans with
agreed objectives and standards of performance, set against a budget covering headcount,
goods and services, and investment in the forthcoming year. Agreements may continue beyond
2025 if Irish Water and local authorities agree. Irish Water and the Water Services Transition
Office recently agreed on a ‘2014-2017 Transformation Plan’, which contains initiatives and
measures to standardise and improve operations, asset management, customer service,
procurement improvement, and assets data intelligence.

Irish Water has placed a greater emphasis on addressing the deficiencies within the public
water system (e.g. leakage, water quality, lead piping, infrastructural planning);

The utility has begun centralising procurement of goods and services for the public water
system, leading to savings of €12 million in the first year.

Irish Water is economically regulated by the CER, which will scrutinise and approved its budgets,
capital plans and set domestic and non-domestic water tariffs. As part of regulation, the
Regulator will conduct a partial overall performance assessment of Irish Water to incentivise the
utility to improve its performance in areas like service delivery. Irish Water will be required to
publish the performance results. This will incentivise Irish Water to improve its performance
around a set of key metrics, e.g. customer service scores, drinking water standards, and
39
environmental compliance. Following consultation an overall performance assessment will
commence from the beginning of 2017.

Irish Water’s operational costs scrutinised and controlled. The CER approved an overall allowed
revenue for Irish Water of €2.078 billion for the period from 1 October 2014 to end 2016, which
equates to an 8.2% reduction in Irish Water’s proposed costs for the period. The reductions
included a 13.5% reduction in operational costs by the end of 2016 through a 7% annual
efficiency challenge.
75. What is Irish Water doing to increase water conservation?

Conservation of water is a key objective to meet the growing needs of the country. Currently
Irish Water produces approximately 1,700 million litres of water every day, but up to 800 million
litres are lost in leakage. This cannot continue. Irish Water will implement an integrated
programme of measures to reduce leakage for the monies available. This will involve:
o
a major, sustained ‘find and fix’ project to pursue leaks at a much increased intensity,
guided by expert management (at regional level) and latest technologies;
o
pressure management to optimise pressures so that losses in leaks are minimised and
progress on reducing losses is sustained;
o
targeted mains replacement, based on failure record data, ensuring that the worst
mains are replaced at the beginning; and
o
customer-side leak and usage reduction, aided by the domestic meters, with a ‘first fix
free’ free campaign and customer support to assist in demand reduction.

Customer service improvements targeted by Irish Water include safer, cleaner drinking water,
reduction in lead service mains, improved pressure in areas of deficit, reduced flooding from our
sewers and much improved compliance with discharge standards to protect our environment.

Economic growth requires that Irish Water invests in additional strategic capacity, removal of
capacity bottlenecks in our networks and the ability to offer connections to new development
areas at least cost. Ireland is fortunate to have substantial good quality water resources capable
of meeting all of our present and future needs if planned and managed correctly.
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76. What do annual service plans entail?
Annual service plans encompass a set of operational objectives, key performance indicators and a
related budget, including payroll. These plans set out the context for the delivery of water services
for each local authority for a given year. These objectives cover customer service, regulatory
compliance and cost effectiveness. The annual service plans also include the Capital Investment
Programme and the list of transformation initiatives relevant to each local authority.
77. Have 2015 annual service plans been agreed?
The 2015 process is well under way and there has been significant interaction between Irish Water
and the 31 Local Authorities over the last two months. It is expected that annual service Plans for
2015 will be agreed by the beginning of December 2014. Meeting the CER customer requirements
is at the heart of the 2015 annual service plans.
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Irish Water pay and staffing
78. How many staff are employed by Irish Water?
There are currently 531 staff employed in Irish Water.
79. How many staff are employed on water services in local authorities under the SLA?
In 2014 there was 4,300 staff employed in water services.
80. Will Irish Water staff receive ‘bonuses’?
This is a matter for the Board of the company. The Chairman of Ervia has indicated that that
company has decided that the Performance Related Awards will not apply in Irish Water for 2013
and 2014. Furthermore, an independent review of the pay model for Irish Water is to be initiated
with a view to making a recommendation to the new unitary Eriva Board on the appropriate pay
model for Irish Water.
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Irish Water capital projects
81. What deficiencies existed regarding infrastructure under local authority responsibility for
water services?

Capital investment on water infrastructure needed to increase. The PwC independent
assessment on establishing a public water utility found that the dependence on the Exchequer
for capital funding has constrained investment in the sector in the past. The assessment
assumed annual investment levels of €600 million per annum. In 2013, approximately €300
million was invested in infrastructure.

Significant deficiencies exist in the public water and waste water systems due to a lack of
sustained infrastructural investment. These include:
o
22,181 people on boil water notices;
o
EPA analysis that remedial action is required for approximately 12% of supplies, which
are at risk, and affect approximately 945,000 people;
o
a national leakage rate of up to 49%;
o
inadequate waste water treatment: in 42 urban areas, for example, sewage is
discharged untreated, with rivers and bathing waters at risk of pollution;
o
Ireland on formal notice of an EU infringement case, requiring improvements at 66
waste water urban centres;
o
insufficient drinking water supply for the Greater Dublin Area, which could act as a
future economic constraint – most European capital cities have 15-20% headroom
whereas Dublin operates at approximately 96-99% of full capacity; and
o
major drinking water schemes are antiquated and need overhauling (e.g. the Lee Road
scheme in Cork and the Vartry Scheme, a major water supply for Dublin).
82. What is Irish Water responsible for infrastructurally?
On 1 January 2014, Irish Water became the national water services authority, responsible for:

construction or maintenance of water and waste water treatment plants;

installing water meters; and
43

raising finance to fund improvements and repairs in the water system.
83. How has capital project delivery changed?
(1) Irish Water’s first capital plan commenced in 2014 and will last until 2016. Thereafter, Irish
Water will deliver six year capital plans, which will provide input into river basin management
plans, required under the Water Framework Directive, which also last six years.
(2) Irish Water has adopted a new approach towards asset management central strategic planning
based on accurate asset performance data and full control of all investment decisions. It wants
to plan investment consistently across the asset base rather than on large scale, one-off
investments. An example of this is the proposed Ringsend Wastewater treatment plant upgrade,
where an alternative approach to a treatment plant extension will save the company €170
million in capital investment.
(3) Irish Water’s capital project costs are now scrutinised and controlled by the regulator. The CER
has set Irish Water a 7% annual capital efficiency challenge to non-committed capital costs
(excluding capital maintenance).
84. What is Irish Water doing to reduce leakage?
Irish Water estimates that between 45 and 49% of water produced is lost in leakage, of which 5-6%
is lost on the customer side. The situation varies across local authorities, with 30-35% in the Greater
Dublin Area and over 50% generally in rural schemes. Given total average production of the order of
1,700 million litres per day, this represents a resource loss of some 800 million litres every day. It
should be appreciated that for a network where very little replacement has taken place, with 800km
of mains over 100 years old in Dublin alone, reducing leakage is a long-term challenge. This will
required sustained investment estimated at €100 million per year indefinitely, with realistic targets
of 35-38% nationally by 2022 and 25-28% for the Greater Dublin Area, where this level of leakage
reduction is a critical element of Irish Water’s plan to meet medium term needs in the region.
Leakage is complex and affected by many factors. The majority of leaks are underground on both
public mains and on customer’s supply pipes, requiring significant effort and specialist technology to
find them. Reducing and controlling leakage therefore requires good information, expert
knowledge, specialist equipment and rigorous management.
44
Meters are required to identify leakage on the system. Since 2000, well over €100 million has been
spent installing district meters, mapping of the pipes and carrying out ‘pilot’ leakage detection
projects funded by the Exchequer. However, local authorities acting individually were unable to
reduce leakage significantly (particularly outside Dublin) due to funding and other resource
constraints. Irish Water is committed to moving from a relatively passive leakage control (repairing
pipes identified at the surface) to a proactive approach based on intensive ‘find and fix’
programmes. This will require a coordinated approach with a range of measures based on regional
programmes of work to:

mobilise specialist trained leakage detection crews to find leaks underground with follow-up
repair in a minimum timeframe;

implement pressure management of the distribution system in order to reduce the
propagation of leaks on fragile mains and to reduce leakage flows in existing leaks;

deliver targeted mains replacement based on burst history, such that this investment
delivers the maximum savings in water; and

replace all backyard shared service pipes serving multiple properties, which are a particular
source of leakage in the system. Many of these are also lead mains which need to be
replaced.
The installation of domestic water meters is a significant step towards effective management of
water supplies by providing the means to quantify the actual volumes of water utilised in properties
where meters are installed. This allows for a more accurate determination of unaccounted for water.
Furthermore, metering allows both the customer and Irish Water to better understand the
consumption and likely sites with identifiable customer-side leakage and the potential for savings, as
international evidence has shown that consumption can be reduced by 10-15% through the
introduction of water meters, taking account of both behavioural change and leaks in the property.
That would account for 3-4% of total water produced at present. UK experience showed that funded
programmes of customer-side leak repair delivered lower cost savings in water use than either
distribution ‘find and fix’ or mains replacement. While large scale mains replacement is desirable
over time to improve the resilience of the network, including reducing water quality issues and
customer interruptions, reliance on replacement alone would achieve minimal savings for many
years. Even if Irish Water could afford to replace 0.5% of the network every year (300km per year),
this would represent only 5% in 10 years. For that reason, the approach must include the full range
of measures outlined.
45
Irish Water is currently engaged with local authorities on agreeing a transformation initiative to
enable a national approach to leakage reduction, based on a regional shared delivery model. This
will define the structures, organisation, systems and resourcing required to manage and deliver an
effective leakage reduction programme to meet Irish Water’s targets.
85. What level of investment will there be after 2016?
The CER will determine the level of capital investment after 2016, taking account of the twenty five
year Water Services Strategic Plan to be prepared by Irish Water and approved by the Minister for
the Environment.
86. Are there any impediments to the taking-in-charge of estates?
There is no legal impediment to the taking-in-charge of water services assets which will be
subsequently transferred to Irish Water. The Department of the Environment, Community and Local
Government has issued a circular to local authorities confirming this and advising local authorities to
take-in-charge certain estates, where possible. Work is underway to put in place a strategy, including
funding options, for addressing deficiencies in estates with developer-provided infrastructure that
are not connected to the public water or waste water network.
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Irish Water and regulation
87. What does economic regulation of Irish Water entail?
The CER is the independent, economic regulator of Irish Water and retains the power to advise the
Minister on development and delivery of water services. It has three main functions:
1. set performance standards for the new utility;
2. examine Irish Water’s operational costs and capital plans and approve water charges plans in the
light of these costs; and
3. have powers of direction over Irish Water to produce codes of practice relating to performance
standards, customer billing, payment methods, Irish Water information communication to
customers, and customer complaints.
Irish Water has published a Customer Handbook, which forms part of the ‘water charges plan’. It
provides guidelines to Irish Water regarding required levels of customer service and customer
protection measures. The handbook covers Irish Water’s customer charter, terms and conditions
and codes of practice. The handbook requires that Irish Water pay a €10 charter payment to
customers per breach of certain service quality levels. The CER is empowered to direct Irish Water to
comply with all codes of practice.
CER’s decisions must have regard to:

ensuring Irish Water customers are provided with the quality of service provided for under codes
of practice;

water services are provided by Irish Water economically and efficiently;

Irish Water is operational in a commercially viable manner;

conservation of water resources;

continuity, safety, security and sustainability of water services;

the ability of Irish Water to meet reasonable current and foreseeable water demands;

the recovery of costs of water services in accordance with Article 9 of the Water Framework
Directive;

performance by Irish Water of its functions in a way that enables the State to achieve the
environmental objectives of the Water Framework Directive; and

the need for Irish Water to perform its functions in an open and transparent manner.
47
The Minister for the Environment may give the CER a direction of a general policy nature, which the
CER must comply with. Such directions will only be given with adequate reasoning, consultation and
advanced notice.
The CER has also held public consultations on an economic regulatory framework for the water
sector, domestic and non-domestic tariff structures, and a customer handbook, and has made final
decisions on all of these areas.
88. Has the Government overturned the regulatory process?
No. The allowed revenue approved by the CER continues to apply, save for the impact of a changed
approach to commercial rates which is deemed an ‘uncontrollable’ or pass through cost by the CER.
What the Government has done is to review the policy parameters applying to the use of the
subvention that it provides to Irish Water in order to make charges more affordable. These changes
will be effected by primary legislation as a transitional measure, recognising that the scale of the
reform requires this period of certainty for customers, as the new utility is bedded down. The
enduring regulatory model remains as set out in the Water Services (No. 2) Act of 2013. Irish Water
will be delivering on the efficiency targets set by the CER for the 2015-2016 period.
A second short regulatory period will apply in 2017 and 2018, in respect of which Irish Water will
submit its costs and capital plans in order for the CER to set the overall allowed revenue, approve
capital investment levels and set the tariffs for non-domestic customers. While the capped charges
set by Government will remain in place until 2018, it will be open to the CER to reduce the per unit
price of €3.70 per 1,000 litres after 2016, in the context of determining the allowed revenue and
efficiency challenges for 2017 and 2018.
89. How is Irish Water environmentally regulated?
The EPA remains the environmental regulator of water quality. It continues to oversee enforcement
of drinking water quality regulations, and audits Irish Water in relation to the production of drinking
water. The EPA is able to direct Irish Water to improve the management or quality of a public water
supply. Local authorities retain their supervisory roles in relation to group water schemes and
private supplies.
48
The EPA also continues to regulate urban waste water treatment plants and inspect domestic waste
water treatment systems.
Responding to customers
90. How will the customer centred focus be strengthened?
Customers themselves are best placed to articulate what customers want, both now and in the
future, from a public water utility. Therefore, the Government will establish a Public Forum on a
statutory basis, drawing representation from paying households and businesses, to engage with Irish
Water on matters such as the priorities for investment and service standards in a more structured
way.
91. Who will be on the Public Forum?
The Government will announce details of the forum’s composition in due course.
92. Who will be responsible for investigating customer disputes?
The CER has been assigned the role of protecting customer interests under statute. The approach
taken to dispute resolution for customers of Irish Water is consistent with the general approach for
commercial State companies. This recognises that Irish Water is working under a different regulatory
framework than that which existed prior to 1 January 2014. It was a policy decision of the
Government to establish Irish Water as a public utility and this is reflected in Water Services Acts
2013.
The CER and Irish Water have also agreed to enter into a voluntary ‘Dispute Resolution Agreement’
which sets out agreed working arrangements and processes to deal with customer disputes. The
Irish Water Code of Practice on Complaint Handling has been updated to reflect this agreement. It is
normal practice for the CER to investigate customer disputes with utilities.
In addition, the CER will be engaging with both Irish Water and the EPA to develop complementary
complaints processes to ensure customers are directed in an efficient manner to the appropriate
organisation with their complaint or query. In this regard, it should be noted that Irish Water is also
subject to statutory supervision by the EPA and the Health Service Executive in respect of any
environmental and human health aspects of its water services provision.
The Government has decided to establish a customer forum on a statutory basis, drawing
representation from paying households and businesses to debate and advise Irish Water on these
49
matters, providing a customer perspective on what customers want, both now and in the future,
from a public water utility.
93. How will Irish Water engage with elected representatives?
At national level, Irish Water has established:

a dedicated phone line has been put in place for Oireachtas Members;

Weekly Wednesday Evening Clinic for Oireachtas Members which are held in Leinster House (AV
Room at 4pm;

A fortnightly Irish Water Update for Oireachtas Members;
At local level, Irish Water has established:

A separate dedicated Phone Line for local councillors;

Regional Information Officers have been recruited for the South and West/North West Regions.
They are commencing work in early November and their contact details will be issued to
Deputies and Senators shortly. These Information Officers will also be a critical link between Irish
Water and Local Authority Members and also with local media, including regular slots on local
radio. Elected representatives in the East and Midlands Region will be able to liaise directly with
Irish Water’s Head Office’s Communications Team for the moment – contact details will be
circulated shortly.
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Financing Irish Water
94. How is Irish Water funded?
Irish Water is being funded by a combination of domestic and non-domestic water charges,
Government subvention and the raising of debt on capital markets.
95. How quickly will Irish Water go to capital markets?
Irish Water is currently raising debt from commercial banks in addition to continuing to avail of
NPRF\Ireland Strategic Investment Fund and other government funding.
96. Will Irish Water’s investment plans now be scaled back?
Government has not altered the proposed capital funding of Irish Water, and the level of customer
revenue will drive a larger investment programme than could have occurred if water services
remained with local authorities.
The allowed revenue approved by the CER continues to apply, save for the impact of a changed
approach to commercial rates which is deemed an ‘uncontrollable’ or pass through cost by the CER.
What the Government has done is to review the policy parameters applying to the use of the
subvention that it provides to Irish Water in order to make charges more affordable.
97. What is the Market Corporation Test?
The Market Corporation Test is one of a number of tests used to determine whether an entity
should be classified within the general government sector. The test determines whether an entity
sells its products at an economically significant price which, in practice, would be assessed if the
sales of the producer cover a majority of the production costs. The level of sales dependent on
government funding is also tested.
If Irish Water does not charge domestic customers for water, Irish Water will fail the Market
Corporation Test and be classified within Government.
51