Donegal TD Thomas Pringle says that a reduction in water rates for commercial use in the switchover to Irish Water appears unlikely, despite recent reports to the contrary.
Speaking on the matter in the Dáil this week, the Independent TD for Donegal asked the Minister for Environment Phil Hogan if he foresees a reduction in commercial water rates under Irish Water in view of the fact that the local authorities have been operating the ‘polluter pays’ principle in relation to commercial water rates for many years and full cost recovery for the supply of water to commercial users.
“There have been reports that there would be a reduction in commercial rates because domestic users have been getting water for ‘free’ and commercial users have been paying for everyone, but I don’t believe that to be the case.
“Local authorities operated for many years on a full cost recovery basis in the charging of commercial users and also operating in the ‘polluter pays’ principle in setting water charges, which means that the aspect to supply water to commercial users in local authority areas is fully paid for by those commercial users so it will have no bearing on the cost of providing water for domestic users or the charges in relation to that, so I believe commercial users will not see a significant reduction.
“The Minister stated that it will be a matter for the Commission for Energy Regulation to determine the appropriateness of costs incurred in the operation of Irish Water as part of the process of setting the tariffs for both the domestic and non-domestic sector in the future, so to say that the commercial sector will see a reduction is simply untrue.
“As a centralised authority Irish Water could well create a set rate for all commercial users on a nationwide basis, which may result in a slight reduction in some areas, but in reality it is unlikely that the majority of commercial users will see any reduction in their water rates,” stated Pringle.
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