Frequently Asked Questions - Water Reforms

8/10/2019 Frequently Asked Questions - Water Reforms

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Frequently Asked Questions

Revisions to water charging structure

1. What changes to the charging system has the Government announced?2. Why has the Government made these changes?3. What are the benefits of the revised system?4. How will these changes affect the status of Irish Water as a commercial entity?

Domestic water charges

5. How much will people pay in water charges?6. Who will be a customer of Irish Water?7. Does the capping of bills for customers with medical conditions necessitating high water usage

still apply?8.

Who is liable for domestic water charges?9. What payment options will be available to customers?10.Will I be able to get a pre-paid meter like gas and electricity customers?11.What happens if households do not respond to the Irish Water customer campaign?12.What happens if domestic customers do not pay their water charges?13.Can Irish Water reduce water supply or disconnect if people do not pay their water charges?14.Will Irish Water have power to seek payment from employers or the Department of Social

Protection?15.What free allowances are to be provided?16.Why are households no longer getting the free allowance of 30,000 litres per annum?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?18.Will there be concessions for households with lead piping?19.Will there be concessions for households on boil water notices?20.Will there be concessions for households with hard water?21.What is the tariff for a not permanently occupied dwelling (e.g. holiday homes)?22.Will there be rebates for households moving from unmetered to metered charging?23.Why is the rebate not being paid after 3 months as recommended by the CER?24.How many dwellings will not be metered by the end of 2018?25.What happens to households who do not receive a meter before the end of 2018?26.What will happen to households on group water schemes?27.Will mixed-use premises be charged for domestic water use?

28.

Will mixed-use customers be entitled to rebates?29.Why are mixed-use customers being billed twice?30.How long will charges be capped for?31.What domestic water charges rates will apply after 2018?

Irish Water customer application campaign

32.What do customers who have already registered have to do now?33.What should customers who have not registered yet do?34.What happens if a household does not return Irish Waters application form?

35.

Will Irish Water ask households for PPS numbers?36. 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?

Other customer-related issues

39.Will there be supports for households in tackling customer-side leakage?40.What is being done about the problem with lead exceedences in drinking water?41.Will Irish Water be providing additional services for customers (e.g. plumbing)?42.What do I need to do if I am moving dwelling?

Water conservation grant

43.What households will be entitled to the 100 water conservation payment?44.Why has the Government replaced the previously announced measures with this grant?

45.

How will households receive this payment?46.When will households receive this payment?47.If I move dwelling within the year do I still qualify for a conservation grant?

Meters

48.Why are we metering if there is a capped charge?49.What can customers do to reduce water usage and lower bills?50.How do you read the meter?51.How can I proactively monitor my water usage when the meter is underground?

Domestic metering programme

52.How is the domestic metering programme being rolled out?53.Who is implementing the metering programme?54.How can customers find out if and when they will be metered?55.Will apartments be metered and when?56.What is the cost of the domestic metering programme?57.Will consumers have to pay for meters?58.Why not invest the capital for water metering in water mains rehabilitation?59.How will customers know if they have a leak?

Government water sector reform programme

60.What reforms are happening?61.What is the timeline for remaining reforms?62.

Why is reform happening?63.What will be the benefits of reform?64.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 Watersoperations?66.What reform progress has been made so far?

Irish Water governance

67.How is Irish Water accountable?68.How will Irish Waters governance structures be improved?69.Who will make the appointments to the new board of Ervia?70.

Will Irish Water be privatised?71.Will there be a referendum to keep Irish Water in public ownership?


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Irish Water operational issues

72.What deficiencies existed in operational matters under local authority responsibility for waterservices?

73.What is Irish Water responsible for operationally?

74.

How have operational matters changed?75.What is Irish Water doing to increase water conservation?76.What do annual service plans entail?77.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 projects81.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?

Responding to customers

90. How will the customer centred focus be strengthened?91. Who will be on the Public Forum?92. Who will be responsible for investigating customer disputes?93. How will Irish Water engage with elected representatives?

Financing Irish Water

94. How is Irish Water funded?

95.

How quickly will Irish Water go to capital markets?96. Will Irish Waters investment plans now be scaled back?97. 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 and260 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);

Households with either a water supply only or waste water only service will pay 50% of these

rates;

Metered usage can lead to lower charges than the relevant cap;

the Childrens 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 Waters 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 Waters underlying costs and taking account o f the

Governments 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 waterinfrastructure. In revising the manner in which Government subvention is provided to Irish Water,

particular attention has been paid to Irish Waters capacity to act commercially . In this regard, over

50% of the utilitys 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 acceleratedprogramme 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 companys

capital and operating expenditure does not impact on the exchequers deficit or debt figures.


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Domestic water charges

5. How much will people pay in water charges?

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 childs

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 100water 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 Governments

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

Household Type Capped

Annual

(Quarterly) Bill

Water

Conservation

Grant

Net Cost

Single Adult households with or

without children

160 (40) 100 60

(15)

Multi Adult households with or

without children

260 (65) 100 160

(40)

Dwellings not permanently

occupied

Minimum charge

Maximum charge

125

260

Not eligible

unless the

house is the

persons

normal

primary

residence


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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 customers account;

where water is unfit for human consumption, a 100% discount will apply to the drinking waterportion of a customers 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 tenants 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 Waters 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 tenants 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

Childrens 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 customers bill

for every day that the restriction lasts. Households will, where relevant, still be liable for the chargefor 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 households 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 customers 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 customers 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

apply. The total charge is calculated as the

meter read less a domestic allowance fordomestic usage.

Same as outlined until

the CER decisions on

non-domestic charges.

Not applicable

Domestic Bill

A capped charge for single adult or multi-

adult household, as appropriate

160/260 per year 100

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 Waterdomestic 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 patternsfor 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 m 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 Waters 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.
http://www.water.ie/http://www.water.ie/http://www.water.ie/


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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 detailsbefore 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


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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.


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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 freeproject 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


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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.


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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 Waters customer registration process.

While Irish Water, as part of the transition phase, will have a first fix freescheme 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.


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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 toprovide 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.


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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

freescheme may then be initiated.

50.How do you read the meter?


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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. 1/10 thof 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 wont usually need to

open the meter box or lift the meter lid to take a meter reading as it can be read remotely. Irish

Waters 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 on-

going 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

customers 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 Waters website:

www.water.ie
http://www.water.ie/http://www.water.ie/


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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. 875,000-

880,000 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 ofSMEs (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,


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small businesses and school leavers/graduates gaining employment. In all cases, the Regional

Contractors are exceeding these social inclusion measures.

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 Waters costs and capital plans for 2017

and 2018.

Date% of employees

from SMEs

% of employees from

unemployment

register

% of employees

apprentices/graduates/school

leavers

30/09/2014 53% 21% 10%


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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 isestimated 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.


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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 Gis ireann), 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 Waters 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 non-

domestic customers.

Quarter 1 2015:

January: Water charging commences.

First fix freescheme 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.


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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.


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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 Waters 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 BG (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 Waters

current renewable and efficient energy initiatives aimed at reducing costs by 33% by 2020.

Customer:

Independent economic regulation will protect Irish Waters customers and incentivise Irish

Water to improve its performance and increase efficiency.

64.What is being done to secure efficiencies in Irish Waters operations?

Irish Waters 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.


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Irish Waters 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 1.77billion;


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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 Governments 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.


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Irish Water governance

67.How is Irish Water accountable?

Oireachtas: The Water Services Act 2013 provides that Irish Waters 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 forCommunications, Energy and Natural Resources. A range of Ministerial consent requirements apply,

common to commercial State bodies generally.

Irish Waters 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 Waters 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.


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68.How will Irish Waters 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


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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.


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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 centrehas 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 ofplants 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 regulatedby 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 performancearound a set of key metrics, e.g. customer service scores, drinking water standards, and


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environmental compliance. Following consultation an overall performance assessment will

commence from the beginning of 2017.

Irish Waters 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, whichequates to an 8.2% reduction in Irish Waters 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

freefree 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, regulatorycompliance 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 Roadscheme 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


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raising finance to fund improvements and repairs in the water system.

83.How has capital project delivery changed?

(1)

Irish Waters 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 managementcentral 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 Waters 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?

Ir