Irish Water has confirmed that 64 per cent of customers – or 975,000 households – had paid all or some water charges by the fourth billing cycle, which related to the fourth quarter of 2015. The payment rate had improved gradually through the year, with 44 per cent paying at the end of Q1, 55 per cent at the end of Q2 and 61 per cent at the end of Q3.
However, revenue received during the fourth billing cycle was €33.4 million compared to €42.3 million for Q3, €38 million for Q2 and €30.5 million for Q1. With the fourth cycle of bills being sent to customers in January and February 2016, the lower revenues may reflect the uncertainty caused by campaigning for the election held on 26 Feb in which the future of water charging was a central issue.
The figures come after the Republic’s new government announced a suspension of domestic water charges with effect from the end of March 2016. Charges for services provided up to March 2016 continue to apply and Irish Water is still pursuing payment from customers for services provided in January, February and March of this year.
Total revenue from charges paid by domestic customers in the first full year of billing was €144.2 million, or 53 per cent of total revenue due from domestic charges.
As part of the deal between Fine Gael and Fianna Fáil, charging will be suspended until an independent commission has reported back on the best way to fund water services in the country. The commission is expected to take around nine months to report.
There are also set to be changes to Irish Water’s governance, with it becoming a directly accountable state agency, ending its existing status as a subsidiary of Bord Gais.
Irish Water was created in January 2014, taking overall responsibility for water services which had previously been delivered by 34 local authorities across Ireland. Its metering programme, which have seen over 800,000 domestic properties fitted with meters, has proved unpopular with the public, as has the imposition of water charges for the first time.