Utilities regulator urged not to hike water charges for businesses 'beyond the point of sustainability'

On Tuesday, CRU announced plans to approve a 9.8% increase in water charges for non-domestic and wastewater, set to take effect from October 1. Uisce Éireann had sought a rise of 13%, according to CRU documents.

The Department of Enterprise urged the regulator not to hike water charges for businesses to the extent it has decided upon, as it warned Ireland faces a “period of pronounced economic uncertainty”.

In its submission to the Commission for Regulation of Utilities (CRU), the department said it understood the need for significant investment in the country’s water infrastructure, but rising cost pressures on businesses could not be ignored.

“Increasing cost pressures on the enterprise base carries risks to both the broader economy and to the long-term objective of the sustainable and reliable provision of water in Ireland by extension,” it told the CRU.

On Tuesday, CRU announced plans to approve a 9.8% increase in water charges for non-domestic and wastewater, set to take effect from October 1. Uisce Éireann had sought a rise of 13%, according to CRU documents.

The regulator said the “significant level of tariff increases is required” to enable the utility to invest in essential infrastructure across the country.

It said it was obliged to ensure Uisce Éireann operated in a commercially viable manner under the law, but it did not have a comparable legal obligation in relation to the affordability or competitiveness of water charges for businesses.

The Department of Enterprise said it advocated another approach to avoid reaching “beyond the point of sustainability for the enterprise base”.

“The department is also conscious of the substantial contributions made to the State by the enterprise base and would request the CRU consider a tariff structure that would balance the financial needs of water services with the long-term economic viability of the enterprise base,” it had said.

Other submissions made to the CRU regarding the tariff increase included one from Guinness-maker Diageo, which called for smaller incremental increases spread out over several years.

“There was an increase of over 30% in water charges last October, which have already had a considerable impact on our costs,” it said.

“Introducing an additional 10% increase just a year after this substantial hike poses challenges for budgeting and financial planning within such short intervals between significant increases.” 

Business group Ibec, meanwhile, said the Government must cover the water tariff increase for 2025 and should increase capital allocations to Uisce Éireann to cover its investment programme and operations.