The Irish Hotels Federation (IHF) has voiced serious concerns over a decision by the Commission for Regulation of Utilities to approve a 9.8% across-the-board increase in water charges for businesses.
Effective from October 1st, the increase follows an average hike of 30% in water charges for hotels compared to this time last year.
IHF President Michael Magner said: ‘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. As a major consumer of water services, the hospitality sector is disproportionately impacted by increases in water tariffs, which businesses are unable to absorb.’
Mr Magner said the sector was 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.’
He called for a fairer funding model ‘that supports the long-term sustainability of Irish water services, while maintaining cost competitiveness for SMEs’.
