Water meters could cost State €800m

INSTALLATION PROGRAMME:THE INSTALLATION of water meters could cost the State less than €200 million or more than €800 million, depending on the method chosen, the Oireachtas Committee on the Environment, Transport, Culture and Gaeltacht has heard.

Installation of the meters in every home in the State will start later this year as part of the Government’s plan to introduce water charges.

Dr Edgar Morgenroth, associate research professor at the Economic and Social Research Institute, said research suggested putting water meters inside homes would cost less than €200 million, if they were provided to 1.48 million households. Placing them at the boundary of properties would cost more than €800 million.

He called for a cost-benefit analysis of both options. “The key difference in terms of benefit is that leaks external to a property are not immediately attributable to the householder if the meter is located inside the property,” he said. “On the other hand, internal meters are more likely to be monitored by householders.”

He advised against giving a free water allowance to people unable to pay the charges, saying it would not encourage them to preserve water.

Instead of this, Dr Morgenroth suggested giving a cash allowance, which would act as an incentive to use as little water as possible. He also highlighted the huge variation in water charges levied on businesses around the State.

The price of water in Wicklow, at €3.04 per cubic metre, was more than double that in Kildare (€1.49), yet both counties received some of their water from the Liffey, he said.

Dr Morgenroth also raised the idea of regional water charges, saying the cost of extracting water was low in areas such as the Shannon basin but charging the same price for water throughout the country would remove this comparative advantage.

Meanwhile, Minister of State for Communications, Energy and Natural Resources Fergus O’Dowd said up to 2,000 jobs a year would result from the metering programme. He said there would be national supply contracts for the procurement of boundary boxes and meters as well as up to 200 local installation contracts.

“The installation of the meters is labour intensive, involving minor excavation and reinstatement works after the installation of the meter,” Mr O’Dowd said. “The type of jobs involved will include general operatives, small-excavator drivers, plumbers, fitters, supervisors, site agents, contract managers and accounts and administration staff.”

He said international experience suggested water meters could reduce consumption by at least 10 per cent.