MOST HOUSEHOLDERS are likely to face water charges of between €250 and €400 per annum by the end of 2014, when the metering programme will be almost complete, according to informed sources.
The Department of the Environment refused to comment on the possible cost to residents, describing these and other suggested figures as “totally speculative”.
A spokeswoman said there would be a “clearer picture” in February, adding it was essential to reduce the burden of water costs to the exchequer, as supplies and treatment were costing the State about €1 billion a year.
A flat-rate charge for domestic water is being ruled out. The department’s thinking is that such a system would only encourage householders to leave their taps running, on the basis that the charge would be the same, whatever the level of usage.
Consequently, Minister for the Environment Phil Hogan is believed to be firmly set on establishing a level of water consumption at which no charge at all would apply. The department, however, could not as yet indicate what this level would be.
The principle of establishing a centralised water agency to replace the current system involving 34 local authorities was taken at a Cabinet meeting earlier this month.
The department spokeswoman said the project would be “a massive undertaking” which would contribute to job-creation. There would be further consultations in coming weeks.
It was hoped to have meters installed in “the vast majority of houses” by the end of 2014. Contracts for metering would be issued “early in the new year”. Self-installation by residents was not under consideration.
Mr Hogan told The Irish Times: "The principle is agreed, that we're going down this road, but we haven't set out the detail of how we're going to implement it – that will be done by the middle of February."
He noted water charges by meter were included in the EU-International Monetary Fund bailout agreement, but his party had been “ahead of the posse” even when in opposition by undertaking to “bring it all together under one particular entity”.
The Minister added that it was “a bit like setting up the ESB all over again for an essential natural resource”. He added: “All residential properties will be metered by 2015 at the latest, and we’ll start the process . . . in autumn of 2012.”
The Minister said: “In 2012 we’ll start to roll out the contracts. The details of how we’re going to do that we’ll announce in January.” There would be some “site investigation work” in the next few months and issues relating to installation of the meters would be established.
Comparing the process to the installation of electricity meters, he added: “We want to capture the leakage as well in the pipe network.” There was, he said, “a huge amount of leakage. It varies from 24 per cent to 48 per cent depending on the local authority. It’s not sustainable.”
Labour Senator John Whelan said the new water utility should be established under the auspices of an experienced body such as Bord na Móna, the peat board, which he described as “a perfect fit” in this instance.
He was “diametrically opposed” to a new independent agency, he said, adding: “It is Government policy to reduce the number of quangos.”
Other bodies mentioned in this context include Bord Gáis and the National Roads Authority. However, the department said no decision had been made on this matter as yet.
It is believed the preferred option at senior Civil Service level is the setting up of an independent agency for water. The Government is expected to take this decision in February.
