The Second Abolition of Domestic Water Charges and The 1998 Water Services Pricing Policy
Domestic water charges in Ireland were thus prohibited under the Local Government (Financial Provisions) Act 1997, passed in May 1997 shortly before the June 1997 general elections in which Fine Gael lost to Fianna Fáil under Bertie Ahern. However, given popular discontent the new government chose not to pursue domestic water charges. Instead, it embarked on extensive consultations which resulted in the 1998 water services pricing policy. The policy banned cross-subsidy of domestic services from non-domestic charges. For non-domestic users it required the recovery of average operational and marginal capital costs of water services from these users. It also foresaw the metering of all non-domestic users by 2006. Domestic operational costs were to be paid for through a local government fund, and capital costs were to be financed through the capital programme of the Department of the Environment, Heritage and Local Government.
As a result, according to one critical observer, "a generation of people is growing up without realizing that water is expensive to deliver". According to a water industry source, Irish households use more water than UK metered equivalents. Investment costs are rising as water is accessed from further afield and from water bodies that are potentially sensitive fish habitats.
Read more about this topic: Water Supply And Sanitation In The Republic Of Ireland, History Since 1977
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