Oireachtas Joint and Select Committees

Tuesday, 21 October 2014

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Water Tariffs: Commission for Energy Regulation

2:55 pm

Mr. Paul McGowan:

The Shannon scheme is still under investigation. Options and costings will be prepared but we will have to be convinced that it is needed and that the expenditure is efficiently incurred. It is too early to give the Deputy a specific answer. In the overall context, we will also be investigating other areas in which capital expenditure can be made, for example, in terms of reducing demand or fixing leaks. A project of the significance of the Shannon scheme would only proceed with our sanction based on the case made for it.

Only real costs are being passed to customers based on our analysis. We do not set specific targets for Irish Water in regard to any individual category. We set Irish Water a target and it is up to the company to decide how it will achieve the target, whether through reducing its labour costs, energy costs or consumables costs.

We do not manage Irish Water. We regulate Irish Water so we set targets and then it is up to it how it delivers on those targets.