Proposed Hike in Water Charges Unacceptable & Needs to Be Reviewed
IFA Environment chair John Murphy said the proposed increase in water charges, which are due to be introduced on the 1st October, are unacceptable and need to be reviewed.
He said that one of the guiding principles of the tariff framework is they should be equitable and not unduly discriminate between customers.
“This is certainly not the case as the proposed increases nearly double the standing charges for water connections, which will place an excessive cost on farmers that use low volumes of water,” he said.
“The new tariffs will disproportionately impact farms that use low volumes of water and/or have multiple connections. The farms primarily impacted are extensive farming systems and the most financially vulnerable with average incomes of €15,000 per annum,” he said.
The Commission for Regulation Utilities (CRU) is proposing a 47% increase on standing charges increasing the charge from €43.02 to €83.02 per connection. The volumetric charges for Band 1 (<1,000 m3) are to increase by 15% from €1.87m3 to €2.19m3.
“These proposed increases come at a time when many farm families are under significant financial pressure. Given the economic vulnerability of these farms, the principle of full cost recovery is not justified. There are serious equity issues that have not been addressed in the proposed increases and they need to be reviewed,” he said.
He concluded that farmers goodwill around the development of the water infrastructure network will be seriously damaged if the proposed changes are introduced without some recognition within the framework of the financial vulnerability of these farming systems and their ability to pay.
