Proposed increases in water charges for non-domestic users from October will excessively penalise small businesses and farmers, an Independent Dáil deputy has claimed.
Seán Canney, a TD for Galway East and former minister of State for the Office of Public Works, has called on the Government to intervene with Uisce Éireann and instruct it not to impose the new charging regime.
New Tariffs and Increased Costs
The new tariffs for water and wastewater will be introduced on October 1st. The standing charge per connection will double from €43 to €83 and there will be a 15 per cent increase in water charges for Band 1 users (who use a volume of less than 1,000 square meters), with other ranges of increases for larger users.
Mr Canney argued that the timing of these increases is particularly problematic, given the current economic climate. He stated that increases in electricity and other costs had already made trading difficult for small businesses and farmers.
“Uisce Éireann is now intending to increase the cost of water to these businesses at the wrong time. The doubling of the standing charges for water connections will place an excessive cost on farmers, especially suckler and dry stock farmers. Farmers’ income has fallen, as confirmed in the latest Teagasc survey, and small businesses are struggling to keep their doors open,” he said.
CRU Approval and Irish Water's Response
The changes were approved by the Commission for the Regulation of Utilities (CRU) earlier this year. Irish Water defended the increases, stating that there had been no update to tariffs for business customers since they were last set in 2019.
The company also pointed to a CRU information note that said the majority of customers will see bill increases of less than €250 annually. Furthermore, Irish Water highlighted that customers facing larger increases could also benefit from a bill-capping arrangement if the cost of the increased tariff is €750 more.
Irish Water provided a breakdown of the anticipated impact on customers:
- 86 per cent of customers (162,905 connections) would see annual bill increases of less than €250.
- 5.4 per cent would see annual bill increases of between €250 and €500.
- 7.4 per cent would see annual bill increases of between €500 and €5,000.
- Less than 1 per cent would have bill increases of €5,000 or more.
Concerns About the Impact on Rural Ireland
“We may see further closure of small family businesses and the strong movement away from farming. The Government need to intervene as a matter of urgency,” he said. “This is not good news for rural Ireland and the rural economy will bear the brunt of these unnecessary and ill-timed increases”.
The Potential Consequences
Mr. Canney's concerns about the potential consequences of the increased water charges are not unfounded. The potential for business closures and a further exodus from farming in rural Ireland could have a significant impact on the economy and social fabric of these communities. The government's response to these concerns will be crucial in mitigating these potential negative impacts.
A Pressing Issue for the Government
This issue presents a significant challenge for the government. They must balance the need to ensure the sustainability of Irish Water with the need to protect businesses and farmers, particularly in rural areas, from excessive financial burdens. The government's decision on whether to intervene with Irish Water and the new charging regime will be closely watched by businesses, farmers, and the public.
It remains to be seen how this issue will unfold. The government's response will be critical in determining the future of water charges in Ireland and the impact they will have on businesses and farmers.
