Irish Water's change to Uisce Éireann to cost €5m

The change of ownership will involve additional rebranding costs.

Proposals to change the ownership of Irish Water into one entity called Uisce Éireann from next year will cost at least €5m, the Government has said, with the name change having the potential to “result in additional costs” from rebranding.

Minister for Housing Darragh O’Brien recently published the Water Services (Amendment) (No. 2) Bill 2022, which will separate Irish Water from Ervia, of which the utility is a subsidiary, and mean it is known only by its Irish name in future.

Mr O’Brien said that the separation of Irish Water from Ervia is “in the best strategic interests of the water services and gas networks businesses” with an intention for it to take effect on 1 January 2023.

However, in an explanatory memorandum accompanying this legislation, the Government outlined the financial implications of the move.

It said: “The costs arising from separation of Irish Water from the Ervia Group include once-off separation costs of €5m.

“The change in Irish Water's name to Uisce Éireann may result in additional costs being incurred by Uisce Éireann in branding across the organisation. It is intended that such costs will be kept to a minimum and the Department of Housing, Local Government and Heritage intends to engage with Irish Water on the approach to this matter as well as quantifying the costs involved.” 

The memorandum also said that as Uisce Éireann will take over local authority water services from January 1, 2023, it will also be necessary to rebrand relevant local authority vehicles and premises with the new logo “at this time in any case”.

What's your view on this issue?

You can tell us here

Under the new law, it states that the utility’s CEO and chairperson will give evidence to the Public Accounts Committee when required, and it will provide for the transfer of certain staff, rights and liabilities and records from Ervia to Uisce Éireann.

According to Irish Water’s annual report for 2021, however, a “huge body of work” has already been carried out last year on this separation of Irish Water from Ervia.

Its chair Tony Keohane said: “Legislation is required to facilitate the separation of Irish Water from the Ervia Group, however this separation has already effectively been put in place on a non-statutory basis following the recent appointment of a CEO for Irish Water, Niall Gleeson and an Irish Water executive team.” 

Rising profits

That same annual report highlighted how the number of staff earning over €100,000 at Irish Water last year increased by 43 to 176 staff. Operating profits also jumped by 46% to €382m at the utility.

Last year, an Oireachtas committee heard that much of the costs of transferring Irish Water to the standalone entity relates to ICT issues.

Department of Housing, Local Government and Heritage assistant secretary general Feargal O’Coigligh told TDs and senators at the time: “There is one single ICT network in the Ervia group. We are dividing that into two separate networks.

“There are legal costs because the company has a significant legal journey to go on. For example, Ervia procured many contracts for a range of services on behalf of both companies. Those contracts need to be amended and so on. A significant amount of work is involved in doing all that. Those are the kind of areas where costs arise.” 

Mr O’Coighligh said that annual costs of the separation between Gas Networks Ireland and Irish Water would be around €10m, although he said “we have not settled on a final figure”.

Irish Water has been contacted for comment.