New water charges for businesses
The Commission for Regulation of Utilities (CRU) recently finalised its decision on the Irish Water’s Non-Domestic Tariff Framework. Within the next few weeks Irish Water will be communicating with water users and customers to clarify this new information. It is important to note that new changes come into effect on 1 May 2020.
The decision covers:
- The design of the new price structure
- A review of the costs of serving the business community
- How its planned to gradually transition business customers to the new framework over time
Key changes published
- National Charges as opposed to individual Local Authority charges
- Charges which reflect the actual costs of providing water services to the business sector
- Increases or decreases in charges for business customers depending on current charges
- Transitional arrangements to ensure bill changes are implemented fairly and with time to plan ahead
- Four separate tariff classes for metered connections: Bands 1 - 4
Who is affected
The new business charges will apply to both business customers and mixed-use customers who use water services for both business and domestic purposes. Irish Water’s analysis indicates that 83% of connections will see their annual bill decrease, stay the same, or increase by less than €250. Only 17% of connections will see their bill rise by €250 or more.
How will the changes be managed?
- Transitioning customers - changes don’t come into effect until 1 May 2020
- Irish Water to apply the new enduring tariffs to customers whose annual bill is expected to decrease or increase by no more than €250 from 1 May 2020
- Customers facing an increase in their annual bill from €250 to €750 will transition to their enduring tariff rates over three years from 1 May 2020
- For customers that are estimated to face an increase in their bill of €750 or greater, Irish Water is to automatically apply a 10% cap to their annual bill over three years starting from 1 May 2020. Customers can opt-out of receiving this cap.
To ensure your business is fully prepared for this transition, take advantage of advice on the Irish Water Website as well as a comprehensive Tariff Calculator.
It has been a warm summer and with that, the SFA encourages members to continue to be conscious about your water usage in both your homes and your businesses. By practicing water conservation, you save your business money on tariffs while also contributing to a much-needed cause. To learn more about water conservation visit the Irish Water website.