State company told to cut €200m in two years
Published 01/08/2014 | 02:30
IRISH Water has been ordered to cut almost €200m from its costs over the next two years because their spending is "too high" compared to international water companies.
But the industry watchdog said the controversial €85m cost of hiring consultants in setting up Irish Water was spent "efficiently".
The State water company was looking to spend €2.26bn up to the end of 2016.
But the Commission for Energy Regulation shave €185m off this bill, which the householder will ultimately have to pay for.
The reduction of eight per cent will bring the amount Irish Water can bring in down to €2.078bn.
Commissioner Paul McGowan said the regulator believed the overall costs and project management costs were too high.
"We looked at their costs, both at their capital expenditure, their operating expenditure and we benchmarked them with other water companies and we effectively determined that their costs are relatively high compared to other international water companies," he said.
Irish IndependentFollow @Independent_ie