Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Ba mhaith liom athbhliain faoi shonas a ghuí ar gach duine sa Teach.

I am replying on behalf of the Minister, Deputy Phil Hogan, who is currently dealing with legislation in the Seanad. I convey his apologies to the House.

The programme for Government contains a commitment to the introduction of water charges based on usage above a free allowance. The Government considers that charging based on usage is the fairest way to charge for water and it has decided that water meters should be installed in households connected to public water supplies. The introduction of water charges for all users will create a sustainable funding model for the delivery of water services.

The Government has decided to assign responsibility for the economic regulation of the water sector, including the setting of water charges, 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 them.

I am confident the Commission for Energy Regulation, with its reputation for independence and rigorous oversight of utilities, will protect the interests of domestic and non-domestic customers. An appropriate approach to charging customers will be put in place by the regulator and a public consultation will take place later this year as part of the regulatory process. Households will be informed of the level of charges well in advance of their introduction. No decision has been taken yet on the free allowance. This will be a matter for consideration by the Government and will be reflected in the charging structure put in place by the regulator.

An interdepartmental working group has been established to advise the Government on the appropriate method for addressing water poverty and water affordability issues which, as Deputy Phelan pointed out, may arise with the introduction of domestic water charges. The group will examine the issues arising with regard to the free allowance, affordability issues and specific medical conditions which require high water usage. Supported by the ESRI, the group is seeking to identify the key groups which may be significantly impacted upon by the introduction of water charges.

The group comprises officials from the Department of the Environment, Community and Local Government, the Department of the Taoiseach and the Departments of Social Protection, Finance and Public Expenditure and Reform. The group is to prepare a report for consideration by the Government to enable decisions on the proposed approach to be taken in advance of proposed public consultation by the Commission for Energy Regulation during 2014 on the design of domestic water tariffs.

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