THERE is still no overall price for how much it will cost to install water meters in every house in the country.

Environment Minister John Gormley has revealed that although the Government has stated that the work will begin in the New Year, the final costings have not yet been completed.

The recently published Four Year Plan outlined that it is intended that the roll-out of a national metering programme in all households connected to the public water supply will begin in 2011.

This will see every home being hit with some sort of charge for their consumption of water.

But in reply to questions from Fine Gael's Lucinda Creighton, Mr Gormley said: "The overall cost of the programme, and cost per household, will be dependent on the types of water meters and associated equipment chosen for use and the method of installation to be employed, all of which will be subject to a competitive tendering exercise."

The Department of Environment is now analysing "the various options" to ensure the delivery of the metering programme in the "most cost-effective manner".

It is intended the introduction of water charges will help to reduce Government investment in water services and lead to significant savings.

Although the exact method of charging has not yet been set down, it is expected householders will be given a certain allowance for free, after which they will be charged.

A water regulator is to be established to oversee the programme, and the National Pensions Reserve Fund has agreed, subject to certain pre-conditions, to fund €550m towards the meter installation programme.

The Government has promoted the installation plan as a stimulus for the jobs market.

According to the Four Year Plan, charging for water will introduce a new stream to meet costs at present funded by taxation. The cost for the provision of water services to the domestic sector in 2008 was €590m.

The plan says: "It is intended that domestic water charges will cover local authorities' operational costs.

Savings

"A proportion of the capital cost of providing water services to the domestic sector will also be recovered through the charge."

Overall it thought that the new system could lead to annual savings of €500m.

"In addition, savings will result from the incentive effects of metering system which will reduce demand to economically efficient levels over both the short and long term."

kdoyle@herald.ie

- Kevin Doyle, POLITICAL REPORTER