Mr. John McCarthy:

-----but purely for running costs. That is a contribution, in effect, by the State in terms of the extent to which it is buying services from Irish Water. That €399 million covers the cost of what we call a product subsidy because the full cost of water production is not being borne by consumers. The cost of capping to the extent of people's usage would be beyond the €260 and the €160 caps for one- and two-person households, and that is set out in what we call a funding letter between ourselves and Irish Water.