A proposed increase in water charges due to be introduced on October 1 has been criticised as “unacceptable”, with the Irish Farmers’ Association (IFA) calling for the increase to be “reviewed urgently”.
Uisce Éireann has said that, following a public consultation, the Commission for Regulation of Utilities (CRU) has decided on updated non-domestic tariffs.
A new set of national water and wastewater business charges will come into effect from October 1, Uisce Éireann said.
The Irish water authority said that the charges are being updated because the tariffs approved under the CRU’s 2019 decision on the Non-Domestic Tariff Framework expires on September 30.
John Murphy, the IFA’s environment chairperson, said that “one of the guiding principles of the tariff framework is that it 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,” Murphy claimed.
He added: “The new tariffs will disproportionately impact farms that use low volumes of water 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.
The water service standing charge for ‘band 1’ water users (consumption less than 1,000m3) is set to increase from just under €44 to €83 per year.
“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,” Murphy said.
“There are serious equity issues that have not been addressed in the proposed increases and they need to be reviewed,” he added.
According to Murphy, 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.