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October 2011. Presentation Team Jerry Grant Managing Director Chartered Engineer RPS Consulting Engineers Kevin Murray Chartered Engineer Independent.

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Presentation on theme: "October 2011. Presentation Team Jerry Grant Managing Director Chartered Engineer RPS Consulting Engineers Kevin Murray Chartered Engineer Independent."— Presentation transcript:

1 October 2011

2 Presentation Team Jerry Grant Managing Director Chartered Engineer RPS Consulting Engineers Kevin Murray Chartered Engineer Independent Consultant John Power Director General Chartered Engineer Engineers Ireland Place Photo Here

3 Engineers Ireland is the representative body for the Irish Professional Engineer Founded ,000 Members / 5,300 Chartered Multi-Disciplinary Accreditation of Higher Engineering Qualifications Continuous Professional Training & Development Programme Water Services Engineers in Public & Private Sectors

4 Supply (Storage) of Drinking Water & Disposal of Wastewater Efficient Infrastructure –Reliable Quality & Capacity –Leakage Reduction –Asset Management Alternative Sources –Source Options –Security & Strategic Reserve –Source Protection Administration & Cost –Structures & Organisation –Water Charges & Metering –Value for Money

5 Basis of Submission Inadequately maintained, unable to meet peak demand, and requiring significant investment

6 Water – A Key National Resource Drinking Water: –Essential Food Product –On Tap 24/7 –Meet New Development Needs Water: –Industrial Processes –Raw Material –Fire Fighting Resource Waste Water Services: –Public Health –Environmental Protection –Storm Water Drainage

7 Current Situation 34 Local Authorities 950 Public Water Supplies 1,600 million litres / day Over 40,000 km of pipes Unaccounted- for Water 48% Operational Cost 720m Non-Domestic Revenue Collection 52% 50% fall in Capital Spend in 3 years Cold Weather Vulnerability 440,000 Septic Tanks 75% of Homes on Public Water Mains 1,000mm of rainfall each year Challenge: To organise and fund to meet 21 st Century Needs

8 Regulatory Environment Drinking Water Regulations Water Framework Directive ECJ Septic Tank Ruling Lead Solvency Limits Strategic Planning Applications EPA WWTP Licenses Challenge: Compliance at affordable cost

9 EFFICIENT INFRASTRUCTURE

10 Efficient Infrastructure – Where are we now? Major Victorian Age Water/Wastewater Services remain critical to our towns and cities Investment for last 50 years had 2 main priorities - Meeting capacity for new development - Meeting new EU standards of treatment Key Legacy Issues - High leakage and failure risk - Poor quality of much developer-led works - Limited security and flexibility for future - Ongoing environment challenges

11 Efficient Infrastructure – Strategy to Deliver Asset Management Planning Approach: Regional Strategic Plans (5-6 years) and long term view Whole Life Cost (Integral Capital and Operating Budgets) Computer based records and performance models Regional Management Approach (Economic Scale): Integrated teams and larger Schemes Common systems, management and procurement Maintain professional water services staff and skills Adequate Budget Through User Based Charging: Revenues must cover operating and capital needs Water Metering introduced in a cost effective way Focus on encouraging demand management

12 Efficient Infrastructure and Treatment Plants: Modern Treatment Plants Recent water services investment has left us with a portfolio of new treatment plants; Plants must have strategic capacity for future; Maintain capital replacement funds. Well Operated Treatment Plants DBO contracts on treatment plants run to a Performance Management System; Operator and Technology Risks with the Contractor; New standards require advanced technology and operation.

13 Efficient Infrastructure - Operation: Economic Level of Leakage Accelerate Investment in District Metering and Active Leakage Control; Address Customer-side Leakage as well as public mains repairs and replacements; Apply computer model-based asset management approach to networks. Energy Efficiency Water services account for half the energy budget of most local authorities; Opportunities exist to use renewable energy sources and drive energy efficiency; Recover energy from wastewater treatment processes.

14 The Consumer & Demand Management Water Efficiency Grants Education Programmes Smart Metering Customer Leakage Protocols Consumption- Based Charges Demand Management

15 ALTERNATIVE SOURCES & STORAGE

16 Alternative Sources/Storage – Needs for Water Water demands mirrors economic growth (1-2% / year) Future Estimates – assumes leakage to below 20% and that universal metering will apply Rainwater/Greywater use requires bylaws and economic incentives (low impact in medium term on existing properties) Must provide headroom for peak demand and risks to supply Ireland must use its sustainable resources to exploit worldwide water stress – key economic advantage

17 Alternative Sources/Storage – Key Issues Balanced Environmental considerations –(Ecology, Amenity, Community, Climate) Local Catchment needs to be prioritised –Finance catchment management through abstraction charges Raw Water Storage – useful to avoid dry summer extractions (balancing storage) Desalination – High Cost / Energy – leading to significant increases in cost of water (e.g. Australia) Ireland must manage its water sources to achieve economic advantage

18 Alternative Sources/Storage – Dublin & Mid East Recommended Solution (subject to Planning) Lough Derg (Shannon) and large Midlands raw-water storage ESB balances flows at Ardnacrusha – no change in Lake levels Midlands Storage meets supply needs during low flow periods No Impact in Shannon Catchment Secure long-term supply will sustain vital economic growth (20/30 years and beyond)

19 Dublin Region – A Sustainable Future Lough Ree Lough Derg River Shannon Parteen Basin River Shannon 62 km twin 1400 Φ pipeline Raw Water – 124km total Pressure: 15-20bar 54km twin 1200 Φ pipeline Drinking Water – 106km total Pressure: 10-20bars 15km twin 1000 Φ pipeline Integration – 30km total Drinking Water Pressure: 5-10 bars Peamount Reservoir Saggart Reservoir Termination Point Reservoir Garryhinch Bog (Bord na Mona) Raw Water Abstraction & Pumping Station Water Treatment Plant & Treated Water PS Storage (Raw Water )

20 Parteen Weir at Lough Derg Outlet Old Shannon River Ardnacrusha Headrace

21 Alternative Discharges 1.Receiving Waters dictate the discharge standards and hence costs 2.Coastal discharges offer greater capacity for large catchments 3.River / Estuarine discharges require limits on Ammonia, Phosphorus, Nitrates, Bacteria, hence higher costs 4.Treatment Plant Locations must satisfy aesthetic, odour, noise and other environmental impacts 5.Transmission networks can determine costs (Sewers, Tunnels, Pumping Systems, Urban Development)

22 Septic Tanks ECJ Ruling v. Ireland 450,000 Septic Tanks > 25% Polluting Risk to Groundwater Neighbours wells Registration essential Grant aid those that engage Chartered Engineers Inspection & Authorisation

23 ADMINISTRATION & COST

24 Irish Water We believe that Irish Water should ultimately be a dedicated water utility company operating within a regulated environment and with effective ownership of the assets. The responsibilities of Irish Water should encompass both water and wastewater services from abstraction of raw water through all stages of the process to the eventual discharge of treated wastewater.

25 Administration and Cost Objectives Administration 1.Efficient Accountable Utility subject to Regulation 2.Responsible for delivery of public policy objectives 3.Commercially focussed with Whole Life Cost Approach 4.Integrated Budget Models and Control of Revenue 5.Water Charging to be fair, transparent and support water conservation 6.Allow for managed Transition and Timeframe to protect Services and retain Knowledge and Expertise in Local Authorities as necessary.

26 Administration and Cost – Key Roles Government Public Policy and Social Protection Financial Regulator Regulate Price, Investment & Service Levels Environmental Regulator Protect Public Health and Environment Local Authority Strategic Economic Development Planning Catchment Management & Aquatic Environment Protection Stormwater Collection & Flooding Control

27 Administration and Cost – Functions of Irish Water Central Administration Strategic Plans / Asset Management Strategies / Policies Revenue and Budget Control Investment Management Project Management and Procurement Regulatory Interfaces Risk, Safety, Environment, Legal, IT, HR Customer Services Regional Operations Management of Service Delivery Management of Delivery of Projects Legacy Programmes (Leakage and Assets) Service Connections metering & reading Workflow Progression

28 Administration and Cost – International Water Pricing 2010 Tariffs Overview (Global Cities) (Ref. September Issue of Water Australia) German Cities3.60 – 5.90/m3 Australian Cities2.65 – 3.70 /m3 Paris 2.90 /m3 Glasgow 4.33 /m3 US Cities2.0 – 2.10 /m3 Key Cost Issues: Investing in Water Security is driving up prices, especially for Desalination Elements of Public subsidy many apply outside EU Free Water referenced in Dublin, Belfast and Ashgabat (Turkmenistan) Current Irish consolidated charge approximately 2.30/m 3

29 Administration and Cost Model Funding Model Required to be: Self Sustaining for both Capital and Operational Cost Raise finance backed by Regulated Asset Value Have transition funding for Capital needs Provide for legacy needs, especially leakage reduction Commence fixed charge and transition to metered basis in affordable manner prioritising high leakage properties Social Welfare Code to provide funding for disadvantaged category

30 Conclusions Ireland requires a 21 st Century Water Service to further socio- economic growth Key requirements are: A fit for purpose organisation to deliver, subject to policy and regulation Sustainable funding to meet whole life cost needs (including deficit) Must deliver secure high quality services with appropriate security and strategic capacity to promote growth and jobs


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