Group water schemes - Operational Subsidy
An integral part of maintaining and improving the quality and reliability of rural water supplies is the annual operational subsidy, payable by local authorities, towards the operational and management costs of group water schemes supplying water for domestic use.
The aim of the subsidy is to ensure the principles of equity of treatment and equivalent financial support equally between households on public water supplies (Irish Water) and those in group water schemes.
The type and amount of operational subsidy payable will be dependent on a number of factors.
A brief outline of subsidy type is set out below.
Subsidy A
This subsidy, with two funding thresholds, is payable towards the general operational and management costs of all types of group water schemes. Detailed requirements are set out in Part A of the Operational Subsidy Terms and Conditions.
The Subsidy A rate per house paid to a scheme will not exceed:
€231.00 for privately sourced group water scheme (i.e. supplying water to its members from its own source and water treatment plant).
€115.00 for publicly sourced group water scheme (i.e. supplying water provided by Irish Water to its members).
Subsidy B
This subsidy is payable (in addition to Subsidy A) towards O&M costs associated with “bona fide” DBO contracts for group water schemes. Detailed requirements are set out in Part B of the Operational Subsidy Terms and Conditions. Subsidy B is made up of two parts, a fixed element and a volumetric element.
This Subsidy only applies to a private group water scheme that is: part of a ‘bona fide’ long-term Operational and Maintenance (O&M) contract [e.g. as part of a bone fide approved Design Build Operate (DBO) project], and is self-managed by a member of the scheme, by a GWS Employee or a contractor engaged by the scheme.
Please see explanatory memorandum for further details.
Subsidy C
Introduced in 2018 and updated in January 2019
This subsidy is payable (in addition to Subsidy A) to Group Water Schemes that agree to advance and progress an amalgamation and/or rationalisation strategy involving their merger into a new entity.
The objective of Subsidy C is to incentivise small private group water schemes to move through amalgamation and/or rationalisation to what will be, in the long term, a more sustainable (through economies of scale) existence.
Detailed requirements are set out in Part C of the Operational Subsidy Terms and Conditions.
This Subsidy only applies to a private group water scheme that has less than 100 houses.
The incentive is limited to three years from formal initiation of the process by a scheme to progress into a more sustainable entity.
The Subsidy C rate per house paid to a scheme will not exceed:
Prior to January 1st 2019 - €50.00 supplement to Subsidy A per house, for 3 years - combined maximum ceiling of €281 (Max Subsidy A of €231 plus Subsidy C of €50).
From January 1st 2019 - €100.00 supplement to Subsidy A per house, for 3 years - combined maximum ceiling of €331 (Max Subsidy A of €231 plus Subsidy C of €100).
Advance subsidy
An advance payment may be made to a scheme in relation to the subsidies described above.
The advance is subject to a limit of 70% of the previous years subsidy.
Please note that payment of grants/subsidies to group water schemes will be aligned to Government policy on encouraging the use of Eircodes. As such, each GWS will be required to provide this information for each property included in the application for subsidy payments.
One of the conditions of payment of subsidy is that Group Schemes adopt the Charter of Rights & Responsibilities for Members of Group water Schemes and this document can be viewed on the website of the National Federation of Group Water Schemes www.nfgws.ie .
A new subsidy scheme including increased levels of grant was introduced for 2018 and subsequent years with one of the main changes to the terms and conditions being that schemes can no longer charge for domestic water except in certain circumstances. There are further new conditions and the full terms and conditions and the application form can be accessed below.
The terms and conditions and application form for the scheme which was updated and amended in 2018.
Group Water Scheme Subsidy
Group Water Scheme location map:
National Federation of Group Water Schemes
Charter of Rights -