The funding model for Uisce Éireann was agreed by Government, in September 2017 in the context of the decision to move away from charges for domestic water services and based on recommendations made by the Working Group on the Future Funding Model for Uisce Éireann.
The funding arrangements are based on different approaches to the domestic and non-domestic sectors. The cost of providing normal domestic water services is met exclusively by Exchequer funding through a subvention along with a capital contribution. The subvention received from the Exchequer on behalf of domestic customers covers the domestic portion of operational (current) expenditure along with a contribution towards the domestic portion of capital investment. The balance of the cost of domestic investment is funded through a capital contribution from the Exchequer.
The cost of providing non-domestic services is met by a combination of a non-domestic tariff framework and a loan facility provided by the Minister for Finance. The revenue received from non-domestic billing covers the non-domestic portion of operational (current) expenditure along with a contribution towards the non-domestic portion of capital investment. The balance of the cost of non-domestic investment is funded through a loan facility provided by the Minister for Finance.
The €1 billion equity investment announced in the budget is a contribution towards non-domestic services. I am currently considering the mechanism and timing of providing the €1 billon equity investment in consultation with the Minister for Finance.
The Exchequer capital funding provided to Uisce Éireann over the last five years is set out table below.
|
|
Actual 2020
€m
|
Actual 2021
€m
|
Actual 2022
€m
|
Actual 2023
€m
|
REV 2024
€m
|
|
Capital Funding
|
679
|
599
|
717
|
971
|
983
|
Over €2.7 billion (current and capital, including €1 billon equity) is being provided to Uisce Éireann to meet the cost of water services in 2025.
The amount of loans extended by the Minister for Finance in each of the last four years and the total that may be drawn down in 2024 is set out below.
|
|
2020
|
2021
|
2022
|
2023
|
2024
|
|
Debt facility
|
€372m
|
€130m
|
€112m
|
€201m
|
€184m
|
