Water charges cap may be extended until 2021

Fine Gael and Labour are both considering linking the maximum amount a householder will pay in water charges to the rate of inflation if re-elected to office.

It is understood both parties believe the capping of charges should remain until 2021 – the end of the next government’s five-year term – at least.

The Coalition put a cap in place in November 2014 when it substantially recast its original water charges plan.

The cap now stands at €160 for a single-adult household and €260 for a household with two adults or more, but these amounts drop to €60 and €160 when the €100 water conservation grant is taken into effect.

The current level of charges will apply until December 2018 but the Government has provided for capping of charges beyond that point, subject to a ministerial order being passed by the Oireachtas.

It means a reassessment of water charges, the most controversial measure of the Coalition’s term, will have to be carried out by the next government.

Inflation

Fine Gael strategists this week discussed the approach to take and linking the charges to inflation from 2019 onwards is one of a number of options being examined for inclusion in the party’s general election manifesto.

It was stressed that a final decision had yet to be made, and sources said more contentious issues such as water charges were among the manifesto commitments being left until last

A Fine Gael source said people would have to be given “certainty” when paying their water charges and that more time had to be given to allow homeowners adjust to the metering system.

It is understood Fine Gael will not seek to change the entitlement to a €100 water conservation grant for those who have registered with Irish Water.

Labour Party sources indicated its manifesto would also contain a commitment to link the water charges cap to inflation until at least the lifetime of the next government but suggested meter charges could be a possibility thereafter.

Earlier this week, Irish Water said 61 per cent of customers were now paying water charges after nine months.

This compared to an initial compliance rate of 44 per cent for the first three months and 55 per cent for the first six months.