New charge to put Galway families in deep water

The St Vincent De Paul (SVP) has warned that water charges will be the straw that breaks the camel’s back for many Galway families unless they implement additional measures to help low income households.

Last week the Commission for Energy Regulation said water will cost €176 for houses with one adult and €102 for each extra adult. A couple with two children will have to cough up €278 annually.

The former minister for the environment Phil Hogan insisted the average household would pay €240 a year. Just three months later, the commission’s figures are 20% higher.

Labelling the charge per litre as one of the highest in Europe, the SVP believes the proposals will have serious implications for low-income households as alleviation measures are not properly targeted to those who need them the most.

The Government’s decision to give financial assistance via the household benefits package is an untargeted measure. The charity believes it should be directed to those in receipt of fuel allowance.

“Using the fuel allowance instead of the Household Package would mean that Government could target assistance directly to older people, unemployed, one parent families and people in receipt of disability allowance.  If measures are required for people who are struggling then they should go to people we already know are in difficulty,” says Brendan Hennessy, SVP social justice officer.

This has been backed up by the Economic and Social Research Institute (ESRI), which stated that the the household package “would not have as great an impact on low income households as one based on the fuel allowance”

The proposed charge of €4.88 per 1,000 litres – one of the highest in Europe– establishes a culture of high charging.

“This could have serious implications after 2016 – the end of the transitionary period. It is also represents the end of the time limit of Government’s subsidy to Irish Water.”

Irish Water had proposed a standing charge and a fixed national rate for consumed water. One month later, prior to local elections in May, the Government directed there should be no standing charge and allowances to each household and child under 18.

SVP said we need to use the time up to 2016 to learn about water consumption and the impact of water pricing and water poverty.

“Coherent, evidence-based, long-term solutions to addressing water affordability and the secure funding future of Irish Water need to be found.”

According to the commission’s draft water charges plan, people with water meters will have consumption-based charges, but will have their bills capped at the assessed charges for six months after the meter is installed.

A property that only requires one of the services – for example a house with a septic tank for dealing with waste water – will be charged at a rate of €2.44 per 1,000 litres.

A typical power shower uses about 80 litres of water so a shower every day will cost them 38 cent or €139 a year.