Irish Water’s proposed new non-domestic water tariff could result in a 20% hike in business costs, with the restaurant and hospitality sectors being the worst hit, according to Dublin Chamber.

The business group this week submitted various concerns to the Commission for Regulation of Utilities about the proposed changes to commercial water prices, which the chamber called “unfair and unsustainable”.

The chamber submission notes that the basis for the proposed 20% rise in costs is unclear. It also argues that the cost hike would be borne by only half of the capital’s companies.

Irish Water’s plan to include a ‘domestic allowance’ for mixed-use connections was also criticised by Dublin Chamber. It dismissed the plan as an attempt to soften the impact of the proposed price changes on the agricultural sector and farming community.

"The scale of price increases being proposed for a concentrated segment of the business community appears extraordinary,” Dublin Chamber’s submission reads. "There is a perception in the business community that this anomaly owes more to political and electoral considerations than to a disinterested regard for equity or good policymaking."

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Competitiveness should be the key principle in determining water prices, Dublin Chamber contends. “Prices imposed upon customers must be proportionate to the costs that they impose on the utility provider,” it adds.

"Ireland’s capital city region would be disproportionately affected by Irish Water’s current proposals in an adverse manner, potentially undermining national economic competitiveness.

“Dublin Chamber does not agree with Irish Water’s proposal to set tariffs on a national geographic basis […] and suggests that closer consideration could be given to a system of regional tariffs derived from localised cost drivers.”

According to the Dublin business group, numerous hotels have been in contact with it to say that they are looking at cost increases of up to 40% in the coming years.

“The impact of any new tariff framework on Ireland’s tourist industry should be closely considered,” Dublin Chamber continued.

“With hotels reportedly facing a VAT increase in the next national budget, the implementation of Irish Water’s proposals would represent a very significant added financial burden."

“Dublin Chamber recognises the urgent need for greater investment in Ireland’s water infrastructure, with a particular focus on meeting the growing needs of the capital city region which is already experiencing capacity issues.

“However, in light of the fact the businesses are the only category of water user being considered with a view to increasing revenue generation, there is very serious concern that business costs could continue to swell indefinitely. Clear assurance is needed on this point.”