Uisce Éireann invested over €1.2 billion to improve Ireland’s water and wastewater infrastructure in 2023

Uisce Éireann report shows significant progress in delivery of safe, secure and sustainable water for Irish communities.

Uisce Éireann’s capital expenditure on critical water and wastewater infrastructure exceeded €1.2 billion last year, delivering improved drinking water quality to customers, reducing wastewater discharges to the environment and building resilience in Irish water supplies. Its Annual Report 2023, published today, shows a range of key achievements for the organisation including assuming full responsibility for the delivery of all public water services in Ireland, transitioning to a centrally managed national utility.

Key highlights for the year include:

• 4,597 connection offers associated with 42,970 housing units
• 1.72 billion litres of drinking water and a 1.26 billion litres of wastewater treated daily
• Compliance of Public Water Supplies with the drinking water microbiological and
  chemical standards in 2022 was 99.7%
• Recognised 51 newly built or upgraded water and wastewater treatment plants
• Recognised 512 km of water main and 122km of sewers laid or rehabilitated
• Financial highlights of 2023 include:
  • Revenue of €1.560 billion (comprising €1.068 billion Government subvention
    and €492m in Non-Domestic and New Connection revenue)
  • Capital expenditure reached €1.289 billion (on an accruals basis)
  • Operating costs (exclusive of bad debts) of €984 million with net assets
    increasing to €5.579 billion

The report shows that capital investment by Uisce Éireann amounted to €1.289 billion (up from €1.061 billion in 2022) representing an increase of €228m. Of this, 41.2% (€531m) was spent on enhancing the quality of water and wastewater services; 17.8% (€229m) on conservation; and 41% (€528m) on future-proofing water and wastewater treatment plants and networks.

On January 1, 2023, Irish Water transitioned to Uisce Éireann and became Ireland’s new standalone water utility. A key focus was establishing the supports and processes to enable the smooth transfer of Local Authority Water Services staff, and enabling the successful integration of all employees in the new shared organisation. This ongoing work is vital to fully deliver the benefits of a national utility model with strong local teams delivering in and for communities throughout the country.

Commenting on the report, Niall Gleeson, Uisce Éireann’s CEO stated that the organisation’s strong performance in 2023 was delivered in a year of complex change and challenge.

“During the year we prioritised the investment of over €1.2 billion in Ireland’s critical water and wastewater infrastructure. This level of investment enables us to make essential multi-generational improvements targeted at providing resilient water services, benefiting communities and supporting growth and development across Ireland.”

“Our primary focus continues to be delivering safe, clean and environmentally compliant water and wastewater services through essential projects and ongoing maintenance and upgrading of infrastructure. The Water Supply Project – Eastern and Midlands will enhance resilience and enable us to adapt to the effects of climate change by diversifying water supply sources. It will provide a secure source of supply to 36 additional water zones in Meath, Wicklow, Carlow, Westmeath, Offaly and Tipperary. When combined, the Water Supply Project - Eastern and Midlands Region and the Greater Dublin Drainage project will provide the essential increase in service capacity for the Greater Dublin Area.”

A standout success in 2023 was the completion of the infrastructure upgrades at Ireland’s largest wastewater treatment plant in Ringsend to achieve compliance with the Urban Wastewater Treatment Directive for a population equivalent of 2.1 million. By the end of 2025, the Ringsend Wastewater Treatment Plant will be able to treat wastewater for a population of some 2.4 million while meeting the required standards and with all remaining ancillary works completed in 2026. Project works were completed at Roscommon and Mallow achieving compliance with the Directive. Works to eliminate raw sewage discharges were completed across 10 sites including Kilmore Quay, Spiddal, Castletownshend, Inchigeelagh, Clarecastle, Liscannor, Kilcar, Kerrykeel, Ahascragh and Burtonport resulting in safer and cleaner water for these populations to enjoy.

The quality of drinking water in public supplies remained very high in 2023. Reducing leakage, particularly in the Greater Dublin Area is a priority in an environment where there is significant population growth driving increasing demand for water. Uisce Éireann continues to prioritise supplies where treatment is still not as robust as it needs to be to ensure all supplies are resilient and safe into the future. In 2023, the utility recognised nine new or upgraded water treatment plants.

Uisce Éireann also continued to deliver key water infrastructure to enable housing development. In 2023, positive responses were issued to 3,008 enquiries associated with 98,369 housing units and 4,597 connection offers were issued, associated with 42,970 housing units. We also closed out the five key actions items assigned to Uisce Éireann in the Government’s Housing for All programme. These included the development of an Experience Based Accreditation Scheme, the publication of capacity registers and the implementation of our First Mover scheme.

Commenting on the financial results, Uisce Éireann’s CFO, Chris McCarthy said: “Uisce Éireann’s capital investment activities continued to be a significant source of economic stimulus during 2023. In addition, our operating and maintenance programmes continued to provide both direct and indirect employment and other economic benefits across the Irish economy.”

• Revenue of €1,560m for the year to 31 December 2023, was €252m higher compared to 2022. Government subvention income of €1,068m in respect of domestic water billing was €107m higher than prior year. The total of Non-Domestic and New Connection revenues was €492m, which is €145m higher than 2022, due to higher non-domestic revenue in 2023 of €245m and higher customer connection revenues in 2023 of €247m.
• The surplus/profit after tax (PAT) increased to €329m in 2023 (€221m in 2022).The PAT generated by Uisce Éireann reflects the regulatory model which provides for a return on capital for investment. Uisce Éireann's surplus of €329m arises from its regulatory model and is to be reinvested in water and wastewater infrastructure.
• Operating costs of €984m (exclusive of bad debts) increased by €117m when compared to 2022. Significant progress in programme activity (particularly the Uisce Éireann Transformation Programme) has resulted in higher contracted service costs, however this increase was offset by lower contracted service costs for the operation of treatment plants following the unprecedented increases in global energy prices in 2022. 
• Capital expenditure (Capex) (on an accruals basis) amounted to €1,289m (€1,061m in 2022) representing an increase of €228m. Capex on a cash payment basis was €1,309m in 2023 (€1,002m in 2022). This level of investment enables us to make necessary, multi-generational improvements to water and wastewater infrastructure. It is targeted at enhancing health and quality of life, protecting our environment, benefiting communities and is critical for growth and development across Ireland.
• Net Assets increased by €901m in 2023 (from €4,678m in 2022 to €5,579m in 2023) mainly driven by the increase in infrastructure assets and slightly offset by increase in borrowings.
• Net debt increased to €534m in 2023 (€331m in 2022). Uisce Eireann’s drawn borrowings (excluding lease liabilities of €16m) at end 2023 were €814m (€613m in 2022) Total available liquidity at end 2023 (excluding Cash and cash equivalents - third party balances) was €649m (€670m in 2022) which consisted of an undrawn NTMA working capital facility of €350m, €289m in cash and cash equivalents available for Uisce Éireann use (€310m in 2022) and Uisce Éireann's €10m bank overdraft facility (undrawn). Uisce Éireann utilised for the first time the €350m NTMA working capital facility during 2023, borrowing €30m in March 2023 and repaying it in April 2023.
• Cash balance at end 2023 was €289m compared to €310m in 2022 (excludes Cash and cash equivalents - third party balances).

Water Quality

• 10 schemes were removed from the EPA’s Remedial Action List in 2023, however the EPA added a further 9 schemes to the list during the year with a total of 57 supplies remaining on the list at year end.
• Trihalomethanes (THMs) are formed when organic material in treated water reacts with chlorine. We have prioritised investment in the schemes identified in the Court of Justice of the European Union infringement case as at risk from THM exceedances. To date works at 69 of the original 74 public water supplies have been complete, with 5 supplies remaining.
• 55,072 people were removed from Boil Water Notices (BWN) that had been in place for more than 30 days. At the end of 2023 there were 19,109 people impacted by 10 boil water notices which had been in place for more than 30 days.
• 29 sites upgraded under the National Disinfection Programme.
• 9 sites upgraded under the Coagulation, Filtration and Clarification (CFC), Filtration and Sludge Programme.
• 13 water treatment plants were rationalised.
• 9,588 lead services were replaced.
• The level of compliance of Public Water Supplies with the drinking water microbiological and chemical standards in 2022 was in excess of 99% (EPA-published percentage based on 2022 data).

Wastewater Quality

• Works were completed at 3 sites listed on the European Court of Justice wastewater infringement case - Ringsend, Roscommon and Mallow - during the year. As at the end of 2023, works had been completed on 22 of the 28 named agglomerations.
• 10 agglomeration with no wastewater treatment was connected to a newly constructed or upgraded treatment plant in Kilmore Quay, Spiddal, Castletownshend, Inchigeelagh, Clarecastle, Liscannor, Kilcar, Kerrykeel, Ahascragh and Burtonport
• The number of agglomerations with no wastewater treatment or preliminary treatment only at the end of 2023 is 19.
• 17 agglomerations were removed from the EPA’s priority list of areas for wastewater improvement.
• Works were completed on 8 agglomerations listed in the 2018-2021 River Basin Management Plan (RBMP).

Future Proofing

• Realised 42 new and upgraded wastewater treatment plants. 9 new Wastewater Treatment Plants (WWTP) were completed (Ahascragh WWTP, Burtonport WWTP, Castletownshend WWTP, Inchigeelagh WWTP, Kerrykeel WWTP, Kilcar WWTP, Kilmore Quay Village and Environs WW, Liscannor WWTP, Spiddal WWTP) and 33 Wastewater Treatments plants upgraded.
• 122km sewer were laid (new and rehabilitated).
• Realised 9 new and upgraded water treatment plants. 1 new Water Treatment Plant (WTP) was completed (Gorey) and 8 were upgraded (Achill, Crolly, Wherrew (Ballina), Ballyboden, Lough Forbes, Kinsale, Smear, Skibbereen Regional Phase 4).
• 512km of water mains were laid (new and rehabilitated).