Capping Non-Domestic Connections bills

The Commission for Regulation of Utilities' (CRU) decision to update the Non-Domestic Tariff Framework will provide for new water and wastewater tariffs to apply on 1st October 2024 and will result in bill increases for customers.

The transitional arrangements (including bill capping arrangements) in place since 1st October 2021, will expire on 30th September 2024.

The latest CRU decision provides for new, bill capping arrangements which will apply to those connections facing bill increases of €750 or more in their annual bill. Those connections that see an increase of less than €750 will immediately move to the tariffs effective from 1st October 2024.

To mitigate the impact of a significant bill change for the 2024/2025 tariff year, a 75% cap will be applied on the maximum annual increase allowed for non-domestic customers facing a bill increase of €750 or more. For those customers whose annual bill exceeds the €750 monetary threshold based on their previous year’s usage, the cap ensures that bill, for a given level of usage, bills will not increase by more than 75% per annum.

In the example below a bill is calculated for a customer facing increases of more than €750. Several case studies have also been published in section 5 of Uisce Éireann’s customer information paper showing how customers will be impacted by the non-domestic rates applicable from 1st October 2024.

A metered connection using both water and wastewater services has an AQ of 4,500m³ and will see an annual bill increase of more than €750. In this instance the annual bill increase is 75% or more as the customer is on a 10% cap and is not charged the enduring tariffs applicable for the period up to 30th September 2024. 

Note: The Annual Quantity calculates the volume of water supplied or wastewater collected over a prior 12 month period. For more information on Annual Quantity visit: www.water.ie/businessaq

To determine if a 75% should apply the following is calculated:

• Taking into account the 10% cap on the maximum bill increase between 1st October 2021 and 1st October 2024, this customer’s annual bill is €9,984.
• From 1st October 2024, the connection will be assigned to metered Tariff Band 2 as their AQ is between 1,000m³ and 20,000m3.
• Using the same AQ  (4,5000m3) the bill calculated using the new rates for Tariff Band 2 is €18,276, which means an increase of €8,292.
• As the annual bill increase exceeds €750, a 75% cap  will be applied – see details below.

A 75% cap is designed to limit the bill increase for those non-domestic customers most adversely affected by the tariffs change effective 1st October 2024.

When the 75% cap is applied, tariff components (i.e. standing charges and volumetric charges) are calculated to ensure a customer connection’s bill does not increase by more than 75% per annum assuming the volume of water used (or wastewater discharged) does not change over the tariff year.

The above table summarises this customer’s capped bill for the 2024/25 tariff year. It shows the effect of the 75% on the maximum annual bill increase between 1st October 2024 and 30th September 2025.