A Cabinet member has been asked to “intercede” with an independent regulator by Minister for Enterprise Peter Burke amid industry backlash over changes to the charging regime for commercial wastewater.
The new regime – beginning in October – is part of a years-long effort to harmonise water charges for businesses, including for trade effluent – wastewater that can contain higher levels of pollutants.
A draft decision from the Commission for Regulation of Utilities (CRU) in January prompted criticism from several sectors, including warnings of higher industry costs.
In April, Burke wrote to Minister for Housing James Browne with “grave concerns” about the timing and scale of increases for the most-exposed firms. Some may eventually see a tenfold increase, with a small group of large users facing increases of more than €1 million.
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The commission, which operates under Browne’s department, had proposed a transition period to 2030, but Burke wanted more time. “I would urge you to intercede on behalf of the affected enterprises,” he added in a letter released under Freedom of Information laws.
He said substantial increases would likely “affect our overall competitiveness” and could be an “existential threat” for some, giving others “reason to reconsider the extent of their existing and future investments in Ireland”.
“Notwithstanding the CRU’s status as an independent regulator ... I would ask if there is any scope for your department to intervene before these latest cost increases are imposed on enterprise.”
The commission has said some large users operate under legacy charging arrangements which give an unfair advantage and an effective subsidy from the exchequer.
The Department of Enterprise said the letter was sent in the context of a commission stakeholder consultation on the matter which sought external input.
Browne replied to Burke that the commission “is, as you are aware, an independent regulator”. However, he added that officials believed it was considering extending the transition period beyond 2030.
Asked if Browne had interceded, his department said it “cannot comment on or input into any decision or determination made by the CRU. The CRU is the regulator and is independent in its functions.”
Labour Party environment spokesman Ciarán Ahern expressed “serious concerns” about Burke’s letter, accusing the Government of “sacrificing environmental concerns at the altar of big business”.
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The commission decided on an extra year for the transition period, and also to cap bills at a lower level than initially signalled, increasing over time. Other requests from industry were not accepted.
Ahern said the outcome appeared to deliver “exactly as Minister Burke had been asking for”.
Jenny Lawler of the Water Institute in DCU said the final decision would not remove the new charges but delay their impact, giving companies more time to adapt. “Extending the transition to five years instead of four, and capping increases more tightly at the beginning, significantly softens the immediate financial impact on businesses.”
The commission said its decision followed independent assessment of evidence and extensive public consultation. The extension of the transition period followed a review of feedback, including recent cost pressures triggered by the conflict in the Middle East.
The final decision “provides a fair and equitable outcome for all non-domestic customers, and addresses the inequity whereby a small number of customers remained on legacy charging arrangements that predate the establishment of Uisce Éireann”, it said.
The Department of Enterprise said it welcomed the elements to “mitigate the impact on enterprises most exposed to increased costs”, especially the longer transition period.
Those who raised issues during the consultation included employers’ body Ibec, airport operator DAA, chip manufacturer Intel, pharma company Bristol Myers Squibb, Enterprise Ireland, brewers and distillers.
