Mr. Paul McGowan:

Deputy Stanley referred to an average charge of €240 for the first two years and asked about the position beyond that. He also asked about the economic rate. Deputy Coppinger asked how there can be full cost recovery and yet a charge of €240. Those questions are within the same ambit. The Deputy is right. There are three sources of revenue to Irish Water - non-domestic water charges, domestic water charges and Government subvention. When taken together those three will equal the total revenue Irish Water will earn. To be clear, as long as there is a level of Government subvention, the charges to customers will reflect that. It stands to reason that if Government subvention falls, charges would rise to compensate for that, all other things being equal. It is as straightforward as that.

We have not done the analysis in terms of what the charges will be in the future. We have been clear that we are looking at the first two years to the end of 2016. That is our interim revenue control period. As this is a new process it is important that we do not try to forecast too far forward. We need to learn more about the dynamics of the water system. We would expect our next price control would be a typical five or six year price control. When we consult on that, probably in 2015 or 2016, there will be more information about the likely charges for the following five or six years.

Deputy Stanley raised the issue of hard water, which was something that came back to us in terms of the responses we received. Everybody acknowledges that in Ireland hard water is a fact of life for many people. We have looked at other regimes. Discounts do not typically apply for areas that have hard water. Our focus is very much in terms of where a discount will apply where the water is not fit for human consumption. That is the focus we are maintaining with regard to that entire area.

The Deputy also raised the issue of the reduction in supply and customers who cannot pay or will not pay. Ms Mannion may have more information in terms of what the outcome of a supply restriction may be but it is important to distinguish between those who cannot pay and those who will not pay, as we do in the energy sector. In terms of people who cannot pay, Irish Water will have obligations to work with those customers to ensure that as far as possible, payment plans that can meet the requirements of the individual customer are put in place and that there are many payment options to ensure people have different means by which they can pay to allow them pay a little at a time on a regular basis or pay it off in lump sums. It is important to distinguish between the cannot pay and the will not pay customers, as we do in the energy sector.

I have covered the economic rate. The Deputy asked about people who do not spend much time in the residence because they are in respite, they travel or whatever. To be clear, this is about the primary residence. If it is their primary residence and they are on a meter, effectively, they will be paying nothing if they are not in the residence because they will not consume water. We are talking about a minimum charge for non-principal primary residences.