Oireachtas Joint and Select Committees

Tuesday, 1 July 2014

Joint Oireachtas Committee on Agriculture, Food and the Marine

Water Charges: Commission for Energy Regulation

5:50 pm

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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When did the commission request the pricing policy from Uisce Éireann? In excess of €185 million is earmarked to be spent on the establishment of Uisce Éireann as a corporate entity. The commission’s role is like that of county councillors in monitoring water services and their improvements while the executive role has been handed over to Uisce Éireann. Public representatives would traditionally have had an input into this process but now we do not which is very frustrating. What is the commission’s view on this, particularly as there have been no improvements or fixing of leaks yet?

In a reply to a question on a capital project for a wastewater treatment in my constituency, Irish Water stated, as a regulated national utility, it must submit its proposed capital investment plan to the regulator which will assess it to ensure it is appropriate and delivers value for money for customers. Ultimately, it is the Commission for Energy Regulation that decides what investments can be made. Would the commission go to, say, Rathdowney, County Laois, to determine whether a new sewage treatment plant is required for the town? Would it talk to Uisce Éireann, local businesses and people on the need for such a plant? Is this a correct interpretation of the commission’s role in deciding capital investment plans?

The Department of Health and Children and Health Service Executive will set out the parameters for charge exemptions and medical conditions. For those with a disability which might not fit into the criteria of a medical condition, will they come in under that heading? When the Bill was going through the Dáil, I submitted amendments to exempt pensioners, particularly those living on just a State pension, from water charges. What is the commission’s view on such an exemption?

The witnesses stated the average charge per household should be no more than €240 per annum from now until the end of 2016, and that is fair enough. In terms of the minimum charge, an elderly person who lives alone may spend time in respite care or with relatives or may have periods of hospitalisation. They may spend periods of time outside the State, such as living with relatives abroad for a period of time. Do the witnesses have a view on a minimum charge for primary residents?

This charge will work in two ways. There will be the charge for the household through the bill and a transfer of money from the Exchequer, or from the property tax as happened this year of €186 million. What percentage should be in the bill which comes in the post and what percentage should continue to be subvented by the Exchequer and taken from general taxation?

With regard to the economic rate, it has been stated there will be no change until 2016. What do the witnesses see as the economic rate? Have they done a calculation on the economic rate for water? What does it actually cost to provide it per household? Do they see it moving quickly towards the full economic rate being included in the bill in the post, perhaps over three to six years? In other words, the full economic rate would be levied through water charges.

The Taoiseach has answered the question on the reduction in supply as he told us a long time ago there would be a reduction in supply for people who cannot pay or who will not pay. There are probably people who cannot pay, such as those in negative equity. They are already on a starvation diet and freezing during the winter trying to heat the house in which they live. They suffer great deprivation. What level of supply will these people have? These are people who simply cannot pay. Uisce Éireann will have the power to turn down the water supply electronically. What level of supply will they get? Will they get 1 gallon, 10 gallons or 1 litre per day? This will be a major question for the regulator because the issue will arise. I know many people in this situation, such as constituents who do not have tomorrow's dinner. They do not have breakfast for tomorrow morning. How do the witnesses envisage this panning out? What will be the level of reduction? How much water will they get into their houses?

Impaired water quality is an issue. The witnesses mentioned a reduction in the bill of 50% in cases where water is not fit for human consumption, and perhaps going beyond this reduction in cases of ongoing and continuous boil notices. There is a problem with regard to hard water, which is where there is lime in the water. In the part of the planet which I inhabit in the midlands there is a huge problem with regard to lime content in the water. This is the case in Kildare, Laois, Offaly and other counties. I have an expensive water softener in my house as do many of my neighbours. Even with this we still have problems with electric gadgets being corroded and blocked. People who cannot afford to put in a water softener are bedevilled with problems. Do the witnesses envisage these people getting a reduction? The water coming in is not of a quality which should be going into a house with regard to electrical appliances. It costs hundreds of euro to deal with electric kettles, showers and washing machines and other appliances which are being destroyed.

With regard to projected increases, a €240 average is envisaged for the first two years. On the first day of a sale one always pitches good prices to attract the public. This question is linked to that on the economic charge which I asked earlier and the witnesses may link the two for the purposes of answering. What is the projected percentage increase over a three to five-year period? Do the witnesses see it as being 5% or 10% a year? What do they consider reasonable?

Tenants will be liable for water charges in private rented and local authority accommodation. An issue will arises where a tenant cannot get a landlord to fix leaks in the pipes or the plumbing system, be it the local authority or a private landlord. Hundreds of gallons would go through a small leak over a week or a month. How will we address this? Tenants tend to be a lower income group.

We do not have an out-of-hours service arrangement between Uisce Éireann and six local authorities, including Laois County Council. I stumbled across this because of a weekend emergency. A problem which occurred on a bank holiday weekend could continue for 72 hours or longer without any emergency services. Uisce Éireann has tried to tell me and the public there were no emergency services prior to it taking over but there were and I have highlighted this. I ask the witnesses to deal with this because it is a huge issue of concern.