commitment made in the renewed programme for government, published in october 2009, to introduce charges based on a system of a free allowance per household, with charges on usage above the allowance. one month before the government's agreement with the troika, the administration's 'national recovery plan 2010–2014' stated that metering would form part of charges and be introduced by 2014. domestic water charges, a requirement under the ec-ecb-imf's programme of assistance, were to be introduced in quarter 4 2014, with households receiving their first bills in quarter 1 2015. bills would be issued for usage in arrears, similar to those for electricity or gas. households were to receive a free allowance, with charges based on metered usage above the free allowance. environment minister phil hogan said households unmetered at the time of charges introduction would be charged on an assessed basis (e.g. dwelling type, number of people in a house etc.). non-domestic customers pay a combined charge for water and wastewater. local authorities set the rates. in 2013, the national average water rate stood at €1.13 per m3. the national average wastewater rate was €1.19 per m3. €2.37 per m3 is the average combined rate. some variation exists in the local authorities' rates, with kildare county council having a combined rate of €1.59 per m3, in contrast with €3.04 per m3 charged by wicklow county council. the cost of water for industrial users has remained relatively static since 2007. investment under the eu's urban waste water treatment directive 1991, local authorities are obliged to construct secondary and tertiary water treatment plants by 2008. new wastewater treatment plants were built in dublin, cork, limerick and galway between 2000 and 2011, generating additional capacity equivalent to the needs of a population of 3.96 million. over the same period, drinking water treatment capacity has been increased by an amount sufficient to meet the needs of a population equivalent of 1.4 million people. the compliance level under the eu urban wastewater treatment directive increased from 25% to 93%. under the government's 'infrastructure and capital investment 2012–2016' blueprint, €1.58 billion in capital investment is to be allocated for water services between 2012 and 2016, with €326 million now earmarked for 2013. the majority of the funding will be channelled through the 2010–2013 water services investment programme, which is targeting reduction in leakage levels; improvements in drinking water standards; capacity and security of supply (including planning a new long-term source for the greater dublin area) and wastewater discharges. infrastructure under the greater dublin strategic drainage strategy is also promised. financing and subsidies funding for maintaining and improving the water supply and sanitation infrastructure comes from the department of environment, community and local government. indirectly, substantial funding historically came from the european union through its european regional development fund. in addition, local authorities levy planning contributions mainly for small capital improvements. group scheme members are entitled to a subsidy from their local authority. after the abolition of domestic water charges in 1997, it was intended that this scheme would extend those benefits to households supplied by group water schemes. the amount of subsidy is 100% of the qualifying expenditure, meaning that all running costs of the scheme are covered by the subsidy as long as they do not exceed the subsidy limit. the amount is around €50 per house per year. group water schemes are also entitled to technical and grant assistance for any upgrading works that may need to be carried out. efficiency and levels of water leakage leakage levels in ireland currently stand at 41%, with considerable variation between local authorities, in part explained by corrosion of antiquated pipes. as part of the national water study, conducted in 2000, a water audit was undertaken for 91 water schemes outside dublin to establish levels of non-revenue water (nrw). the report noted that the poor quality of data and the low level of consumer metering limited the reliability of their figures. they found an average level of nrw of 47%, corresponding to 34 litres/connection/hour and 29 m3/km/day. this compares to only 10.1 m3/km/day in england, scotland 21.3 m3/km/day, netherlands 1.6 m3/km/day and denmark 1.7 m3/km/day. development of water charges first abolition of domestic water charges (1970s) domestic rates, which financed the cost of water services, were abolished for the first time by a fianna fáil government following the 1977 general election. in the same period, an increase took place in income tax and value added tax. the revenue from these increases, and from borrowing (which was high during the late 1970s and early 1980s), was used to fund the local authorities. these had previously relied on domestic rates for their funding, but from this time the central government paid a "rate support grant" to local authorities. however, in 1983 the then fine gael-labour government decided to cut this grant and passed legislation to allow councils to levy service charges. this was perceived by some as "double taxation", since the previously increased taxes remained at their high levels. opponents also argued that rates were unrelated to consumption and that there were insufficient provisions to protect the poor. dublin fight against water charges (1994–1997) a number of councils decided to introduce water charges, while others such as dublin initially decided against introducing them. after water charges were introduced in dublin in 1994, an anti-water charges campaign was initiated and included demonstrations and a boycott of the new charges. the city threatened to cut the water supply to those who did not pay. after lengthy court battles, some non-paying users were cut off, but the non-payment of water charges continued. on 19 december 1996, on the eve of general elections, the minister for the environment brendan howlin from the labour party of the rainbow government of fine gael–labour party–democratic left announced that the water charge was going to be replaced by a new system in which motor tax collected in each area would be the source for local council funding. second abolition of domestic water charges (1990s) 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, because of popular discontent, the new government chose not to pursue domestic water charges. instead, it embarked on consultations which resulted in the 1998 water services pricing policy. this policy banned cross-subsidy of domestic services from non-domestic charges. for non-domestic users, the policy 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, community and local government. water services bill 2003 the water services bill 2003 was presented to the oireachtas by then environment minister, martin cullen of fianna fáil. the bill was designed to consolidate ireland's existing body of 15 different enactments into a single act, and to transpose eu water legislation. cullen called it "the first root and branch consolidation and modernisation of water services law for more than 120 years since the public health (ireland) act 1878", adding that "like the victorian sewers which we have upgraded or replaced, this bill replaces victorian legislation with a new modern legal framework." in september 2004 cullen's successor, environment minister dick roche, also of fianna fáil, defended the proposed bill in dáil éireann. there he was faced with charges that the bill was a "trojan horse to introduce privatisation and domestic water charges". the opposition also criticised the lack of a statutory right of access to water in the bill, lack of public participation in the review of proposed strategic plans, calling the bill "a thinly disguised attempt to privatise the water supply" as well as "a formula to get around the 1997 act and re-introduce water charges by another name." ultimately, the bill was not passed. according to an unattributed opinion piece in the irish times, if the water services bill, 2003, had been passed earlier and implemented effectively, people would not have had to boil their drinking water in galway in 2007 because of an outbreak of cryptosporidiosis. water services act 2007 in may 2007, the fianna fáil-progressive democrats coalition enacted the water services act 2007. as well as updating and consolidating existing legislation, the act introduced a system to regulate group water schemes, assigned the epa with supervisory responsibilities, and placed duties of care on water services users regarding water conservation. fianna fáil-green party government policy (2007–2011) in 2008, the minister for the environment, john gormley, green party leader and former lord mayor of dublin from 1994 to 1995 during the water charges conflict, said that domestic water charges would not be introduced during the lifetime of the government. he also said water shortages would be a key issue that ireland would have to grapple with in the future. the minister said there were other ways of tackling potential shortages which have already left some larger urban areas – particularly dublin – struggling to meet demand during prolonged dry spells. the main focus of government policy would be to reduce the leakages from main water supply pipes. in october 2009, however, fianna fáil and the green party agreed on a renewed programme for government, which pledged to introduce domestic water charges based on a system of a free allowance per household, with charges only on usage in excess of the allowance. in october 2010, the administration's 'national recovery plan 2010–2014' pledged that metering would form part of charges. metering was to be introduced by 2014. as part of the ec-ecb-imf programme of assistance to ireland, agreed in november 2010, the coalition agreed to the introduction of domestic water charges in 2012/2013. fine gael-labour government policy (2011-2015) in march 2011, the new fine gael-labour government's programme for government (2011–2016) contained commitments to a water policy similar to the previous government. in january 2012, the minister of environment, phil hogan, announced a six-week consultation on a planned fundamental reform of the water sector. following that, a metered domestic water charges would be introduced and a new public utility, irish water, would be established and take over responsibilities for drinking and waste water services from the local authorities. independent economic regulation, through the commission for energy regulation, would oversee the new utility's running costs, infrastructural investment plans and the design and level of domestic and non-domestic water charges. in july 2013, irish water was legally established and began a national metering programme. the company was expected to initially install meters for approximately 1.05 million households. domestic water charges were scheduled to commence in october 2014, with households receiving their first bills in quarter 1 2015, with bills paid for usage in arrears. irish water would hence become the national water services authority, assuming all responsibilities for water services from local authorities - except for those relating to certain rural water services and inspections of wastewater treatment systems. ireland's 34 local authorities were to continue to provide some drinking and waste water services on behalf of irish water through a service level agreement. irish water (2015-present) from 2015, irish water became responsible for providing water and wastewater services, with the intention that the company would be funded through direct billing. the new company was set up as a subsidiary of an existing semi-state corporation, bord gáis (ervia). the newly created company took on the existing local authority employees and water management facilities, pipes and infrastructure. while irish water initially issued bills and was funded through payment from residential users, by 2017 the scale of protest and push-back against charges resulted in the suspension and ultimately scrapping of the funding model.