1. WSNTG Annual Conference September 2006 Water Services National Training Group 10 th Annual Conference 7 th September 2006

2. WSNTG Annual Conference September 2006 Affordability Criteria DEHLG Perspective Gerry O’Donoghue Senior Adviser Water Inspectorate, DEHLG

3. WSNTG Annual Conference September 2006 Affordability Exchequer - VFM - other schemes - Appropriateness Local Authority - non-domestic marginal capital cost - development revenue - operating costs

4. WSNTG Annual Conference September 2006 Affordability  CCMA/DEHLG: Guidelines on Affordability  L1/06: Budgetary responsibility

5. WSNTG Annual Conference September 2006 Contents  Statutory Requirements  Policy  Unit Cost Issues  Water Pricing Policy  Justification / Benefits  VFM  Recommended Approach

6. WSNTG Annual Conference September 2006 Statutory Requirements UWWTD Article 3 1.Member States shall ensure that all agglomerations are provided with collecting systems for urban waste water, –at the latest by 31 December 2000 for those with a population equivalent (p.e.) of more than 15,000, and –at the latest by 31 December 2005 for those with a p.e. of between 2,000 and 15,000.

7. WSNTG Annual Conference September 2006 Statutory Requirements UWWTD Article 3 contd. “Where the establishment of a collecting system is not justified either because it would produce no environmental benefit or because it would involve excessive cost, individual systems or other appropriate systems which achieve the same level of environmental protection shall be used.”

8. WSNTG Annual Conference September 2006 Statutory Requirements UWWTD Definition of ‘Agglomeration’ “an area where the population and/or economic activities are sufficiently concentrated for urban waste water to be collected and conducted to an urban waste water treatment plant or to a final discharge point”

9. WSNTG Annual Conference September 2006 Statutory Requirements UWWTD Article 7 “Member States shall ensure that, by 31 December 2005, urban waste water entering collecting systems shall before discharge be subject to appropriate treatment as defined in Article 2(9) in the following cases: –for discharges to fresh-water and estuaries from agglomerations of less than 2,000 p.e. –for discharges to coastal waters from agglomerations of less than 10,000 p.e.”

10. WSNTG Annual Conference September 2006 Statutory Requirements “treatment of urban waste water by any process and/or disposal system which after discharge allows the receiving waters to meet the relevant water quality objectives and the relevant provisions of this and other Community Directives” UWWTD Definition of ‘Appropriate Treatment’

11. WSNTG Annual Conference September 2006 Statutory Requirements  Water Framework Directive –Water Quality Objectives –Measures –River Basin Management Plans – Draft mid- 2008, Public Consultation, publish mid-2009

12. WSNTG Annual Conference September 2006 Policy  Programme for Government (June 2002) –Secondary Waste water treatment for population centres over 1,000.  National Spatial Strategy –5.3.2, Housing Location in Rural Areas –Development in smaller towns and villages.

13. WSNTG Annual Conference September 2006 Unit Cost Issues Treatment Plants  Location of site –distance from existing and planned development –distance from suitable receiving waters for discharging treated effluent –Access and services  Scale of the plant  Influent quality i.e. industrial load  Level of treatment required i.e. effluent standard  Technology

14. WSNTG Annual Conference September 2006 Unit Cost Issues WWTP AB 5BOD:5SS:1P Effluent 25BOD:35SS Effluent

15. WSNTG Annual Conference September 2006 Unit Cost Issues Collection System  topography - gravity system or pumping  density of existing and planned development (length of sewer per house necessary to serve area)  ground conditions (rock, peat, length of sewer in roads)  proximity to existing sewer or treatment plant site  storm water drainage (separate, partially separate or combined drainage system)  Ancillary route costs (reinstatement, wayleaves)

16. WSNTG Annual Conference September 2006 Unit Cost Issues

17. WSNTG Annual Conference September 2006 Unit Cost Issues - Scale

18. WSNTG Annual Conference September 2006 Unit Cost Issues - Scale

19. WSNTG Annual Conference September 2006 Water Pricing Policy  Circular L16/02, para. 5.14 “Domestic capacity of treatment plants proposed by local authorities for 100% funding by the DELG should be limited to that required to meet the domestic needs of the area being served by the existing collection or distribution system and to provide spare capacity to meet any likely residential growth within the area served by that network.”

20. WSNTG Annual Conference September 2006 Water Pricing Policy  “Necessary upgrading of networks within the area served by existing collection or distribution systems will also be 100% funded by DELG.”  “Domestic capacity in excess of that outlined in the first two indents and all non-domestic capacity of treatment plants and networks proposed by local authorities, consistent with their development functions, will be funded by them on a marginal capital cost basis.”

21. WSNTG Annual Conference September 2006 Water Pricing Policy Water Pricing Policy Workshops, 2003  Eligible for 100% DELG funding: Sewer costs to the extent necessary to service the existing network - Area A Notes 1. These sewers are not all necessarily located within the area A 2. Where environmentally and economically justified, and considered appropriate for public funding, works to service existing domestic needs outside the existing network may be considered for DELG funding

22. WSNTG Annual Conference September 2006 Water Pricing Policy  In an unserviced area Department funding is limited to: –An economically justifiable contribution for the environmental benefit, subject to it being appropriate for public funding. –A contribution of at most 40% in relation to the cost, or marginal cost, for servicing future development.

23. WSNTG Annual Conference September 2006 Water Pricing Policy Unit cost of serving the existing domestic demand/load is entirely independent of the non-domestic capital contribution to the cost of the scheme

24. WSNTG Annual Conference September 2006 Justification / Benefits Environmental or Public Health Justification  unsuitable ground conditions for percolation,  not just due to poor design, construction or maintenance of the single house treatment system  not relevant where local authority continues to grant approval to applications for planning permission for new residential or other development on the basis of septic tanks or single house treatment systems in that location.

25. WSNTG Annual Conference September 2006 Value for Money - Benchmark  cost of serving each individual house with a collection system and treatment capacity V.  leaving each house to be served by a septic tank or other single house treatment system as granted approval under Planning Regulations

26. WSNTG Annual Conference September 2006 Value for Money - Benchmark  Single house treatment system - €8,000 per unit  If cost of connecting to public system exceeds €10,000 per house then no VFM for taxpayer

27. WSNTG Annual Conference September 2006 Value for Money / Benefits Weak CaseStrong Case No pollutionExisting Pollution Continued PP on septic tanksHigh density Low densityPlanned development (in accordance with Dev. Plan) No Planning Strategy (per LAP/NSS) No options Other options

28. WSNTG Annual Conference September 2006 Approach  Look at serving the core area of the town or village in a cost effective manner  Examine each outlying area separately to establish unit cost of collection system and increase in cost of additional treatment capacity  Consider:- –Seeking SLI funding –Use more economic collection system technologies –Allow outlying areas remain on single house systems –Defer development of outlying sewers

29. WSNTG Annual Conference September 2006 Summary  Current indicative threshold for affordability of sewerage schemes at €10,000 per existing house.  Service core areas of villages & towns  Outlying areas may be phased as new developments arise, or may be eligible for SLI part funding

30. WSNTG Annual Conference September 2006