Developments in our water sector policy Stephen Dineen Assistant Principal, Water Sector Policy Department of Housing, Planning and Local Governmentam – As

Outline of Presention Context Recap on developments Confidence and Supply Arrangement commitments Joint Oireachtas Committee on Future Funding of Domestic Water Services Water Services Bill 2017 New funding model for water services EU Directives Improving transparency and accountability Conclusions

Water policy context Drinking water supplies Public water supplies: 80% Public/private group schemes: 9% Other: 11% Wastewater services Public sewerage services: 66% Domestic wastewater treatment systems: 29% Other: 5% Remedial Action List Approx. 736,000 people, 87 water supply zones Water quality during 2009-2015 21 rivers in pristine condition, over 500 in 1980s 46% of lakes have good water quality

Confidence & Supply Arrangement Irish Water will be retained as a single national utility in public ownership - responsible for delivery of water and wastewater services External advisory body to be established to build public confidence in Irish Water - improve transparency & accountability, report on performance Set out mechanism to examine future funding of domestic water services Charges suspended for nine months from July 2016, extended to end 2017 Expert Commission reported in November 2016 Joint Oireachtas Committee reported in April 2017, approved by both Houses of the Oireachtas.

JOC on Funding of Domestic Water Services Funding domestic water services through general taxation Long-term funding certainty for Irish Water through multi-annual budgetary cycles Curbing of water wastage through approach based on incentives, levies and other measures. CER to set average consumption level. Public ownership of water services Enhanced measures to increase water conservation Use of district metering, existing domestic meters and modern technology to support leakage reduction

Legislation Water Services Bill 2017 Reflecting recommendations of the JOC on Future Funding of Domestic Water Services Water Services Bill 2017 Proposing a referendum on the public ownership of water services Private Member’s Bill – 35th amendment to Constitution Water abstractions register Guidance on relationship between physical planning and river basin management plans Water Framework Directive

Irish Water Business Plan Plan to 2021 Supported by Government subject to budgetary & regulatory review Capital investment of €5.5 billion Operational efficiencies of €1.1 billion

Present Funding Model for Irish Water Irish Water annual opex & capex of c.€1.3 billion Revenue from Customers Subvention from the Local Government Fund Equity from the Minister for Finance Debt

New Funding Model JOC recommended looking at feasible options to introduce funding certainty over the long-term from existing general taxation provide funding to the utility specifically for investing in water infrastructure to meet Water Framework Directive obligations Key principles Providing certainty over multi-annual period balanced with Oireachtas annual budget role Supporting the regulatory process Improving transparency of funding flows Compliance with the Water Framework Directive

New Funding Model Providing as much certainty as possible prior to the commencement of the regulatory process Approving of costs by the CER State paying for normal domestic usage – all channelled through DHPLG’s Vote

Other Water Funding Rural Water Sector Multi-annual Rural Water Programme and subsidies Working group to follow up on JOC recommendation on additional investment requirements of this sector Focus on sustainable improvements in water quality

EU infringements EU Urban Waste Water Treatment Directive Infringement procedure, October 2013; detailed response to Reasoned Opinion in November 2016 40 urban areas where Commission believes Ireland is non-compliant Case C-427/17 Commission v. Ireland Drinking Water Directive Exceedances of THMs levels in some drinking water supplies DHPLG and Irish Water have produced plan, communicated to Commission Water Framework Directive Draft river basin management plan; engagement with Commission

Water Framework Directive Current state of our waters Pressures on water quality Draft River Basin Management Plan 2018-2021 Proposed actions Expected results by 2021

Water Advisory Body Advise on measures to improve transparency and accountability of Irish Water Quarterly reports to an Oireachtas Committee on performance of Irish Water on Business Plan implementation, with regard to: cost reduction & efficiency improvements procurement, remuneration & staffing policies infrastructure delivery & leakage reductions improvements in water quality, including elimination of boil water notices responsiveness to the needs of communities and enterprise

Public engagement National Water Forum Public Water Forum Irish Water customers Public Water Forum Rural water services National Rural Water Services Committee 6 month public consultation on Draft River Basin Management Plan. Local Authority Waters and Communities Office. Consultation on River Basin Management Plans National Water Forum

Conclusion Legislation to give funding clarity to public water services Actions to address EU infringement cases Water Framework Directive Improvements to transparency, accountability and engagement Flows of funds; Water Advisory Body; National Water Forum

Thank you Contact details: Stephen Dineen, Water Sector Policy stephen.dineen@housing.gov.ie