Coalition considers fixed-rate water charge until 2018

The Coalition is now considering extending the period during which homeowners will pay a fixed rate water charge until 2018, The Irish Times has learned.

A number of sources have confirmed this longer than expected flat-rate period is being seriously examined as the Economic Management Council prepares to finalise its revised water charges package.

The EMC – comprising Taoiseach Enda Kenny, Tánaiste Joan Burton, Minister for Finance Michael Noonan and Minister for Public Expenditure Brendan Howlin – will meet again tomorrow to discuss the package.

Minister for the Environment Alan Kelly and Minister for Communications Alex White will also attend.

Extending the flat rate to 2018 would also move the introduction of metered charges into the lifetime of the next government and would help minimise the issue of water metering as a general election issue, with the election due in spring 2016.

A senior Coalition source said the move would be designed to give people more time to adjust to the idea of water metering while also paying flat-rate bills, as well as allowing for the installation of as many meters as possible.

EU rules

The revised water package is expected to be unveiled within a fortnight, and the EMC is finalising the details on the exact structure and new levels of payment it can create while staying within

European Union

rules about keeping Irish Water off-balance sheet.

The Government spokesman yesterday said the Coalition had “one shot” to get the issue right.

It comes after Ms Burton yesterday told the Dáil she expected the bill for a family of two adults and two adult children to come in under €200.

However, her spokesman clarified this included the €100 welfare package and the proposed €100 tax relief that are expected to be included in the revised plan.

In effect, it means a family with two adults and two children would now have a bill below €300 – but this would be reduced to under €200 when various reliefs are claimed.

Her spokesman later added Ms Burton was only expressing her view, and said work on the revised water package is ongoing at the EMC.

Another Government source said that the Tánaiste’s figures are “probably an underestimation”.

Cap on charges

The Irish Times

reported yesterday that the issue of higher charges for families of dependent adult children is likely to be dealt with through a family water charges cap around the €300 mark. One source said yesterday: “It may end up a bit more than that, it may end up less.”

Under the assessed estimated charge, an average household of two adults and two children under 18 – who go free – would pay €278, comprising a €176 payment for the first adult and €102 for each additional adult.

This would mean substantially higher payments for parents of dependent adult children, such as those in training or education but still living in the home.

The assessed rate has been initially applied to homes without meters, but the Coalition has considered using this as the extended fixed-rate charge that will apply for a number of years. Anyone with a meter installed whose use would still come in under the charge would still be entitled to a rebate.

One source said the additional payment for every adult – which stands at €102 under the assessed charge system – is “probably unlikely”.