Water charges: Where do we stand and what happens next?

Water charges - a brief history

In his budget speech in December 2009, minister for finance Brian Lenihan announced preparations for water charges were under way.

In November 2010, the government published the memorandum of understanding on the conditions of the €85 billion EU-IMF bailout, which said water charges will be introduced in 2012 or 2013, by which time water meters were to be installed across the State. It also said the responsibility for water would be transferred from local authorities to a new water utility.

In July 2013, Irish Water was incorporated as a semi-state company.

(Timeline: A brief history of water charges in Ireland)

When did the charges begin?

Metering started on Wednesday, October 1st 2014 and the first bills began to arrive in early January, 2015. After an underwhelming sign-up rate, minister for the environment Alan Kelly announced a revised, capped, water charges package in November 2013.

The charge was frozen this year following the general election, with customers still billed up to the end of March 2016, according to Irish Water.

How many have paid?

In its fifth and latest billing cycle, which ran from January to March of this year, Irish Water experienced a decline in revenue of nearly 50 per cent. This was the first cycle to follow the announcement that the charge would be suspended for nine months.

The utility company received €18.3 million in billing cycle five, down from €33.4 million collected in billing cycle four.

About €30.5 million was collected during the first billing cycle. This went up to €38 million in the second cycle and peaked at €42.3 million in cycle three before declining to €33.4 million in cycle four. About €162.5 million has been paid to date, well below the €338.7 million due.

Where do the parties stand?

Fine Gael are in favour of retaining water charges and Irish Water, while Fianna Fáil favour a slimmed-down utility in place of Irish Water.

Fianna Fáil recently proposed the abolition of charges, despite initially being in favour of suspension as part of the deal with Fine Gael to support a minority Government on certain matters. The party favours a refund in the form of a tax credit.

Sinn Féin favours abolition and an unspecified form of refund for those who have paid. Both AAA-PBP and the Social Democrats want the abolition of charges and for Irish Water to be scrapped.

The Green Party is in favour of a publicly-owned water service with charges, but with a basic allowance. Labour is also in favour of charging for water but is seeking an allowance.

What next?

An independent expert commission is examining the future of the water charges. It is due to report back at the end of November and its recommendations will then be forwarded to an Oireachtas committee for consideration.

The Oireachtas will make a final decision in a vote by the end of March on whether or not to retain charges.

Under the agreement reached by Fianna Fáil and Fine Gael, water charges can be re-introduced from March 31st of next year.

Irish Water said in May it would suspend the issuing of fines for late payment, which come to €30 for a single adult household and €60 for a two-adult household after 12 months.

Whether or not there will eventually be refunds for those who have already paid remains unresolved.