Uisce Éireann seeks extra funding due to higher energy costs and to bolster workforce

Extra funding sought included €60m in additional energy costs and an additional €12m for temporary contract roles to bolster its workforce.

The regulator for utility companies is "extremely concerned” by a request from Uisce Éireann for an extra €154m in funding for 2024.

The Commission for Regulation of Utilities (CRU) said the company, formerly known as Irish Water, has been in operation for 10 years but its efficiency targets are being missed as it fails to reduce operating costs.

The CRU decided to grant 81% of the additional funding sought, meaning Uisce Éireann's operating budget for next year will rise to €837m.

Uisce Éireann said it needed increased funding due to higher energy prices and the costs associated with the reform of the water sector.

“These cost impacts are real, material, and beyond management control,” Uisce Éireann said.

The extra funding sought included €60m in additional energy costs and an additional €12m for temporary contract roles to bolster its workforce.

CRU said there was “a case to be made” for the increased energy funding, and granting the bid for more staff funding would allow Uisce Éireann to “meet the services to customers at the level expected”.

However, it also noted this temporary funding for more staff must be treated in a “ring-fenced manner” and not become embedded as part of the company's costs.

On the subject of efficiency, where semi-State companies must reduce operating costs over time, the original target of a 6% reduction was deemed “not achievable” by Uisce Éireann.

CRU said it was concerned the company was now aiming for a 1% reduction in operating costs, rather than 6%, as part of its efficiency targets.

In a statement, Uisce Éireann said it was committed to ensuring “value for money and efficiency in the provision of water services”.