Investing in the Future of Ireland’s Water And Wastewater Infrastructure

The Commission for Regulation of Utilities (CRU) has today published its draft determination on Revenue Control 4 (RC4) which sets out proposed funding and performance expectations for Uisce Éireann (UÉ) for the period 2025-2029 for public consultation.

Revenue controls are the framework through which the CRU evaluates and approves Uisce Éireann’s requests for essential investment in Ireland’s water and wastewater infrastructure. The CRU’s role is to provide a robust economic and regulatory framework that enables Uisce Éireann to deliver critical water infrastructure, improve efficiency, and deliver essential water services for customers.

Under RC4, the CRU is proposing the approval of €13.6bn, a minor adjustment to UÉ’s requested expenditure of €13.8bn. This package comprises €8.56bn in capital expenditure and €5.02bn in operational expenditure for 2025-2029. This represents a 50% increase in funding compared with the previous revenue control period, RC3, amounting to the largest investment in water and wastewater services in Ireland to date.

The approved expenditure will be tied to targets including tangible deliverables and investment in water services infrastructure, improved outcomes, increased monitoring and reporting, and reputational incentives.

Speaking today, Fergal Mulligan, Commissioner at the CRU said:

“The updated regulatory framework for water and wastewater services marks a turning point, a bold and forward-looking plan to secure Ireland’s water future. This investment is essential to facilitate housing growth at pace, and support Ireland’s continued economic development. It will address years of underfunding in the country's water sector and is the largest we have ever proposed. The CRU has identified crucial outputs that UÉ must deliver in return for the allowed revenues.”

The above figures do not reflect the recent additional funding provided under the National Development Plan (NDP) for the Water Sector. Additional capital funding has been allocated to UÉ  reflecting a long-term Government commitment to strengthening water infrastructure and services. The CRU expects to receive a plan for approval from UÉ related to this additional funding. The regulatory framework will be updated for any new funding once received.

This transformative investment comes at a critical time where large scale expenditure is needed to meet environmental compliance requirements, a rising population and increasing demand. It will enable UÉ to improve resilience and strengthen water services while supporting customers and aligning with national and EU environment objectives.

RC4 Delivery Obligations

RC4 will deliver benefits to households, businesses, and the environment. UÉ will be required to meet 39 Delivery Obligations throughout the RC4 period, including major upgrades to water and wastewater treatment plants, delivering extra capacity to support housing and achieve leakage reduction targets. The delivery of two major projects, the Water Supply Project (WSP) and the Greater Dublin Drainage project (GDD), will deliver a more sustainable and secure supply of water and will improve wastewater capacity in the Greater Dublin area.

The CRU is proposing an 8% efficiency challenge on UÉ’s capital expenditure, encouraging them to deliver increased outputs. UÉ is required to submit a revised delivery plan demonstrating how it will meet this challenge and the additional outputs that can be achieved. The CRU will also require a 10% reduction in UÉ’s controllable operational costs by 2029. This reflects the anticipated completion of the Uisce Éireann Transformation (UÉT) programme, under which the utility will become a Single Public Utility delivering greater cost efficiencies and service improvements.

While bills for non-domestic customers will increase, the long-term benefits include improved water quality, more reliable services, and empowered and strengthened customer support. To mitigate the impact of increasing investment on non-domestic customers, the CRU is proposing to smooth Uisce Éireann’s revenue recovery over the remaining RC4 period, which would lead to an average increase of 9% per annum, as set out in the recent Non-Domestic tariffs decision in 2025.

Reporting Requirements and Performance Delivery

RC4 is focused on ensuring that public investment delivers real benefits to customers, while holding UÉ to the highest standards of efficiency and accountability. The proposed RC4 framework includes stronger reporting requirements and performance delivery across key areas including:

• Security of supply: It will require UÉ to provide a dedicated security of supply report and aggregate nationwide measures on security as well as measures at the individual Water Resource Zone level.
• Customer interruptions: New targets will be put in place for a one-third reduction in the number of minutes of lost supply, narrowing the gap with better performing utilities.
• Sewer flooding: UÉ will be required to report on properties at risk for the first time expected improvements delivered over the RC4 period.
• Decarbonisation: UÉ will need to report on greenhouse gas emissions and provide a standalone report on compliance with relevant EU Directives, including the Energy Efficiency Directive.

Additional major outputs include: 

• New and upgraded treatment plants (163 water and 61 waste-water)
• 126km of additional water and 113 km of additional wastewater network capacity
• Network rehabilitation -of 663 kms of water main and 34 kms of sewer network
• Treatment capacity of 43 MLD additional water and 57 wastewater plants with extended capacity
• 163 water treatment plants improved in relation to high-risk water quality issues
• 118 new and upgraded pumping stations
• 3 major capital maintenance site refurbishments
• 48 complete works to ensure compliance with wastewater discharge authorisation

Commenting further Fergal Mulligan, Commissioner at the CRU said:

“The CRU expects a significant improvement in UÉ’s performance across key areas of consumer interest during RC4. Revenue allowances will be linked to measurable outputs, supported by enhanced monitoring, reporting, and financial/reputational incentives.  The CRU’s objective of ensuring a secure and sustainable supply of water, enabling resilience and promoting Ireland’s transition to a low carbon society. We look forward to getting the views of a wide range of stakeholders before reaching our Final Determination.”

Read the full draft determination here: Revenue Control 4 Draft Determination | CRU.ie

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ENDS