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As an integral part of a planning approach to improving the quality and reliability of rural water supplies, an annual subsidy towards the operational costs of group water schemes in supplying water for domestic use will be payable by local authorities to groups meeting the conditions of the subsidy scheme as set out in the Memorandum.
In 2009 the Department of Environment, Heritage and Local Government introduced a new Operational Subsidy grant scheme. The new subsidy scheme applies to Annual Subsidy claims for the year 2008 and subsequent years and to Advance Subsidy Claims for the year 2009 and subsequent years.
For subsidy purposes a group water scheme is defined as:
‘A scheme providing a private supply of water to two or more house by means of a common of shared source of supply and distribution system’.
Eligible group water schemes can obtain an operational subsidy each year. A group water scheme may obtain a supply from either a local authority water main or from a private source such as a lake, well, borehole etc. The subsidy is divided into two parts that are structured to take account of the differing operational arrangements and costs in each case.
Subsidy A is payable towards the general operational and management costs of all group water schemes whilst Subsidy B is payable towards ‘bona fide’ O & M costs associated with Design/ Build/ Operate (DBO) contracts for group schemes that have their own water treatment facilities.
Detailed terms and conditions for the operational subsidy scheme including the rates of subsidy payable are set out in the explanatory memorandum for the operational subsidy scheme.
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