Water restrictions: Savings 'must pass to customers'
IRISH Water will be forced to pass on cost savings to its customers when it begins operating the water network from early next year.
Independent regulator the Commission for Energy Regulation (CER) said the company will be set upper limits on the revenue it can generate to meet operational costs.
And if it makes savings, the prices charged to its 1.9 million customers will have to be reduced.
The system is already used to regulate the gas and electricity markets, and also by water regulators in the UK, Denmark and Australia, it said.
While an interim tariff will be introduced for customers from next year, lasting for two years, tariffs would then be set for six-year periods.
Irish Water will also have to set out "realistic and achievable" costs.