Household water charges will not be levied next year, and may not be imposed until 2014 following the introduction of a nationwide meter installation programme.
The Government has chosen not to introduce an interim flat rate of residential water tax pending the installation of water meters in 1.1 million homes connected to the public water mains supply.
Up to €550 million from the National Pensions Reserve Fund has been earmarked to be used to undertake the meter installation programme, to allow water charges to be levied from 2014. A Water Regulator will also be appointed.
The introduction of water charges will reduce the general Government investment required to fix and maintain water infrastructure, reduce leaks, meet future water demands, and comply with the EU Water Framework Directive, the plan states.
No details of a proposed charging system have been given, and the expected returns are not estimated in the plan. However it does state that water charges will lead to significant capital expenditure savings.
