9.8% increase in water charges another example of unsustainable increases in business costs
The Irish Hotels Federation (IHF) has voiced serious concerns over today’s decision by the Commission for Regulation of Utilities to approve a 9.8% across-the-board increase in water charges for businesses. Effective from 1st October, the increase follows an average hike of 30% in water charges for hotels compared to this time last year.
IHF President Michael Magner says:
“This is yet another example of the relentless increases in operating costs that are eroding Irish competitiveness and undermining the viability of businesses. Over a two-year period, the average 70-bedroom hotel in Ireland will have seen an increase of over 40% in water tariffs. This is unsustainable given the exceptionally challenging environment in which hotels and other hospitality businesses are currently operating.”
“As a major consumer of water services, the hospitality sector is disproportionately impacted by increases in water tariffs, which businesses are unable to absorb. The cumulative impact of these and other cost increases now poses a serious threat to the viability of many businesses through our wider tourism and hospitality sector. It is now imperative that the Government tackles these increases head on and delivers targeted measures to enhance cost competitiveness and support business viability.”
“We are particularly concerned about the potential for further annual increases through to 2029, including the ongoing transfer of unjustifiable costs arising from inefficiencies in the delivery of water services in Ireland. We are calling for a fairer funding model that supports the long-term sustainability of Irish water services, while maintaining cost competitiveness for SMEs.”
