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

2. 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

3. 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
21 rivers in pristine condition, over 500 in 1980s
46% of lakes have good water quality

4. 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.

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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

14. 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

15. 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

16. 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

17. Thank you Contact details: Stephen Dineen, Water Sector Policy