Transcript Maria Graham presentation.

Water Services Training Group
16th Annual Conference
Water Sector Reform
Programme
Implementation
INEC, Killarney, 8th November 2012
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Water Sector Reform
Programme Implementation
Water Sector Reform –
Implementation Strategy
Maria Graham
Principal Officer, Water Sector Reform
Programme Management Section, DECLG
Water Sector Reforms
The establishment of a
new public water utility
to take over
responsibility for the
delivery of water
services.
The introduction of a
sustainable funding
model to support
increased investment in
the sector to underpin
job creation and
statutory compliance.
The introduction of
independent economic
regulation of the water
sector under the
Commission for Energy
Regulation.
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Overall Governance
Irish Water

Irish Water will be the water services authority and single
point of contact for customers. It will have responsibility
for:
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The abstraction, treatment and distribution of drinking water;
Conserving water supplies through maintaining and upgrading the infrastructure;
The collection and treatment of waste water and the management and operation
of combined sewer overflows;
Sludge disposal;
Customer billing and relationship management, including requests for new
connections;
Strategic planning for the sector, water resource management and localised
catchment management focused on source protection;
The roll-out of the water metering programme;
Sourcing private finance for investment in capital projects
Phased Transition
Local Authorities
Irish Water
Current Phase
Water Services Authorities
Planning new utility.
Interim Phase (interim
legislation in 2012)
Water Service Authorities
Some functions (domestic
metering)
Transition phase
(2014-2017)
Agents of Irish Water for
delivery of services
Water Service Authority
Service level agreements with
local authorities
Steady State (post
2017)
May remain as agents of Irish
Water
Ongoing relationship re
strategic planning, wider water
management, emergency
planning
Water Services Authority,
responsible for capital
investment & operations
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Programme Management Structure
Steering
Committee
Minister
Programme
Sponsor
Irish Water
Consultative
Group
Industry
Forum
Programme
Director
Policy & Legal
Organisation Model
Sustainable Funding
Policy Framework and
Sector Governance
Corporate Development
of Irish Water
Economic Regulation
Legal and Legislation
People, Skills and change
management
Finance and Funding
Environmental
Regulation
Operations
Customer Service &
Billing
Group Water Sector and
Private Water Supplies
Capital Programme
Metering
LA Transition
Office
Bord Gáis
PMO
Communications
Programme Management
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Purpose of Work-streams

Each work-stream outlines the key objectives, milestones,
deliverable and tasks required to deliver on that area of work.
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The various work-streams are inter-related and inter-dependent and
the overall programme management governance is designed to
ensure that dependencies and risks are managed and targets met.

Collaborative approach to progressing work – involving Department,
LA Transition Office and local authority experts, Bord Gáis (Irish
Water), NewERA and CER.
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The work-stream working group will allow for sharing of information,
monitoring of activities and issue resolution. Stakeholders will retain
responsibility for decision making in light of their functions.
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Policy and Legal Cluster

The focus of this cluster is on ensuring that appropriate
policy and legal frameworks are put in place for the
Irish Water Sector
Policy Framework &
Sector Governance
Legal & Legislation
Policy &
Legal Cluster
Group Water Sector &
Private Water Services
Environmental
Regulation
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Policy Framework – key milestones &
deliverables

Overall policy: It is intended to publish a detailed policy statement in
advance of legislation setting out the policy principles governing the
sector for the period ahead.
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Group water sector: the work-stream will reflect the best
arrangements for managing this sector (in terms of funding,
environmental regulation of the group water sector and quality
assurance) in light of the specific needs both during the transition
period and the longer term.
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Environmental regulation: focus on ensuring that all aspects of
current environmental regulation are provided for in the transfer of
responsibility and that no diminution of environmental regulation
occurs by way of oversight or omission.
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Legislation (Q4 2012)
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Legislation will cover:
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Establishment of Interim Irish Water – roll-out of the
metering programme
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Contracting authority;
Employing authority;
Supports communications and development of customer
interface;
Establishment of water sector regulation role under
Commission for Energy Regulation
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Legislation (Q3 2013)

Legislation will cover:
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Governance of Irish Water
Re-iteration of the public ownership of water assets
Transfer of water service authority functions
Provide for agency arrangements (Service Level
Agreements) which will not be time-bound
Changes to planning law etc., to support
consultation/dialogue between Local Authorities and
Irish Water
Necessary provisions in relation Irish Water staff.
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Organisational Model Cluster

The focus of this cluster is on ensuring appropriate
mechanisms are put in place to establish the new
organisation and the manage the transition.
Corporate Development
of Irish Water
Operations
Organisational
Model Cluster
People, Skills & Change
Management
Capital Programme
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People, Skills and Change Management WorkStream

Key milestones relate to
 Consultation and engagement with staff and unions
 Developing the organisational model from a staffing perspective
 Developing framework for HR issues arising
 During transition (SLA phase)
 If SLA ceases
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Irish Water Consultative Group: joint management /union group to
provide a mechanism for regular structured dialogue, consultation
and engagement on issues arising from the implementation strategy
for Irish Water.
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Operations and Capital Work-Streams

Operations key milestones include :
 Fact-finding - collating data to underpin Service Level
Agreements, etc.
 Developing Operational Model
 Develop Service Level Agreement (templates) and
concluding agreements

Capital programme key milestones include:
 Developing a transition plan for the management of
the capital programme
 Developing investment plans for
 2013 (current arrangements)
 2014-2015 (first regulatory cycle)
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Sustainable Funding Model Cluster

The focus of this cluster is on ensuring that appropriate
mechanisms are put in place to fund the Irish Water
Sector into the future.
Customer Service &
Billing
Economic Regulation
Sustainable
Funding
Model Cluster
Finance and Funding
Metering
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Finance and Funding Work-Stream
OPEX
CAPEX
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Irish Water – funding issues
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Fact finding to establish costbase
Level of on-going Exchequer
subvention
Affordability measures and
free allowance
Developing strategies for third
party funding
GOVT.
FUNDS
THIRD
PARTY
FUNDS
Revenue
requirement
INCOME
FROM
TARIFFS

LA funding issues
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Approach to asset transfer,
liabilities, and contractual
obligations
Impact on local authority
balance sheet, position on
development levies and
General Government Balance
considerations
Charging for Water

Strategy based on having systems in place to be ready
to bill domestic customers from 2014
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Economic Regulation – regulator will set charges,
based on submission from Irish Water.
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Installation of domestic meters to begin in 2013;
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Billing system and customer care systems;
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Conclusion

Extensive programme of work to establish Irish Water
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Collaborative approach vital to success
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Need to maintain delivery and continuity of service –
phased approach
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Significant ramping up of activity over coming weeks
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Implementation will be underpinned with extensive
communications with staff, stakeholders and the public.
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