Barry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank the witnesses for attending today. Like all committee members, I had hoped to speak to them prior to the publication of the draft document. It would have been useful if the witnesses had been in receipt of Irish Water's submission, as they were not when they met us previously, and they assured us they would speak to us about this. It is water under the bridge.

I hope my questions are relevant to the three core briefs handed down to the Commission for Energy Regulation by the Government. Those briefs relate to effectiveness from a cost base perspective, the economic framework and access to capital markets and customer service standards.

I will start where Mr. McGowan finished. I find it unbelievable that the Commission for Energy Regulation, CER, has not yet ascertained what the first-fix policy is, although charging has been ongoing since October. Was it always the CER's brief, as directed by Government, not to have that in place prior to the commencement of charging? Is that as a result of what has come out in recent days about the excessive costs of repairs, with call-out charges of €188 during office hours, €282 outside office hours and €141 per hour thereafter, as well as €220 for a pressure test?

Mr. McGowan also mentioned that the CER's brief allows it to assess and make recommendations in relation to charges Irish Water may impose on its consumers and other means of income. Is this another means of income? Is this only now coming to light against a background in which the CER has not yet clarified the first-fix policy?

To go back to the start, Mr. McGowan said the cost base was excessive to the tune of 8%. Which costs exactly does the CER find excessive? Does it find the start-up costs excessive? Does it find the ongoing operations costs excessive? Did it factor into its analysis the payment system that exists for staff? Does that fall within its remit or is it something outside its control? In relation to the economic framework and the assessment of its viability in the future and its ability to raise and access funds in capital markets, last week's budget saw a further €65 million in Government subvention through the benefits package, the fuel allowance and tax credits.

We are led to believe that up to one million people have not yet returned their packs. Based on an 80% compliance rate, the total revenue from domestic users might be in the region of €160 million. Has the CER factored a compliance rate into its assessment of Irish Water's income? If so, what was it? Was it 80%, 100% or 50%, which it might be when the dust settles? Has the CER had an opportunity to assess the impact of the increased subvention just mentioned, which has come since the charges were set in motion?

Free allowances were significantly reduced on 1 October compared to when the CER circulated its draft document. The allowance has gone from 38,000 litres for children to 21,000 litres. From where did the relevant data come? What scientific evidence was available to back up that decision? Will the CER publicise where that information emanated from? Was any consideration given to whether people aged 18 and older who are attending college, for example, should be assessed based on an adult charge? A commitment was given to review the charges on an ongoing basis. It sounds to me as though the CER was not sure of the data available to make the assertion in the first place.

I welcome the CER's move to give an immediate refund from day 2 where a boil-water notice has been issued. What I fail to understand and what I am greatly disappointed with is that the CER saw fit to give a discount of only 40% to non-domestic users. What does that say to the commercial sector, to the tourism sector, to the licensed trade, and to restaurant proprietors in Roscommon and other places where a boil-water notice might exist? How are they expected to carry on regardless? How are their businesses expected to succeed when they are being hit with such charges? The costs are greatly excessive, given how they supply water to their customers.

On the first-fix and call-out costs, what data has the CER assessed to allow Irish Water to arrive at the prices mentioned? What analysis has it carried out of similar situations in other areas where water charges are part of the income for those providing it? If those questions are answered they might lead to others.