Phil Hogan (Carlow-Kilkenny, Fine Gael)

I propose to take Questions Nos. 8, 16, 21, 24, 31 and 43 together.

The key objective of the Government's water reform programme is to put in place structures and funding arrangements that will ensure that we have a world class water and waste water infrastructure that meets all environmental and public health standards and is well positioned to attract foreign direct investment and support job creation and maintenance. The Government considers charging based on usage the fairest way to charge for water and has decided that water meters should be installed in households connected to public water supplies. International evidence has shown that where meters have been installed, significant reductions have been achieved in the level of consumption and this is also borne out by the water savings achieved with metering in the group water sector. Irish Water will be responsible for the metering programme and, in common with meters for other utility services, the meters will be the property of Irish Water.

The Government has also decided to assign responsibility for the economic regulation of the water sector to the Commission for Energy Regulation. The primary role of the regulator will be to protect the interests of customers and to ensure a consistent and appropriate level of service is provided to customers. My Department is working with the CER on the development of the regulatory framework for the water sector and legislation will be prepared to provide the commission with the necessary powers to fulfil its new role.

The Department estimates that there are approximately 1.35 million domestic properties connected to public water supplies in Ireland. Following detailed analysis of available data, it is estimated that up to 300,000 of these households may not be metered in the initial metering programme due to either the high cost or the technical difficulty in doing so. I expect an increasing number of households will be metered in the longer term as shared service connections are replaced and further options relating to metering apartment blocks are evaluated, including internal metering. Households which are not initially metered will pay for water on an assessed basis.

In keeping with international practice regarding water metering, the meters will be installed at the boundary of the property, most typically in the footpath at the front of a house. Detailed cost estimates on the metering programme have been prepared by my Department. However, it would not be appropriate to release these estimates in advance of the competitive procurement process. The installation of the meters is labour intensive and will provide 2,000 jobs per annum during the course of the metering programme. This is in addition to the significant employment that will be brought about through rolling out an enhanced Department water services investment programme. The framework for water charges, including the charges for unmetered customers and the level of any standing charges, will be determined as part of the regulatory process. No decision has been taken on the level of the free allowance. Almost 300 submissions were received from organisations and individuals as part of the public consultation on the water services programme. The submissions are being examined and will be taken into consideration in developing the implementation strategy for the transition of water services functions to Irish Water.

With regard to rain water harvesting, the provision of a storage tank and the cost of its installation are important considerations. The cost of installing a rain water harvesting system will be influenced by the existing roof drainage arrangements and the level of storage required. The cost of retrofitting an average-sized suburban semi-detached household with a rain water harvesting system is estimated at between €4,000 and €6,000 and would also require significant modifications to internal plumbing systems to avoid cross-contamination with the public water supply.

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