25. Related Parties
Uisce Éireann is a designated activity company. As described in note 1, the shares in Uisce Éireann are solely held by both the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation (99 shares) and the Minister for Housing, Local Government and Heritage (one share).
The related party balances, in respect of the transactions detailed in the relevant sections below, are as follows:
|
31-Dec-25 €’000 |
31-Dec-24 €’000 |
|
Payable to Local Authorities |
(23,117) |
(30,395) |
Amounts due to related parties |
(23,117) |
(30,395) |
Receivable from Local Authorities |
27,253 |
27,327 |
Receivable from the Government |
15,581 |
19,257 |
Amounts receivable from related parties |
42,834 |
46,584 |
Transactions with Local Authorities
In common with many other entities, the Company deals in the normal course of business with Local Authorities. In accordance with IFRS, details of such transactions are not included here. However, the Company has disclosed detail in respect of the following significant transactions with Local Authorities.
(a) Agreements with Local Authorities
|
2025 €’000 |
2024 €’000 |
|
Operating expenditure (payroll, functional support overheads) |
(103,095) |
(137,671) |
Operating expenditure (general overheads) |
(4,250) |
(9,097) |
Capital expenditure |
(24,591) |
(41,641) |
Procurement recharges |
(19,632) |
(27,007) |
(151,568) |
(215,416) |
A service level agreement (“SLA”) between the Company and each Local Authority was signed in 2013 on the basis that the Company would own the water assets from 1 January 2014. The SLA between the Company and each individual Local Authority was an outsourcing agreement for up to a 12 year period originally intended to end in 2026. Under the SLA, each Local Authority operated and maintained the water assets on behalf of the Company in return for the agreed fees set out in the SLA performance targets and service levels are agreed in an Annual Service Plan between each Local Authority and the Company in accordance with the SLA.
During the course of 2023, the Company and each Local Authority signed a new Master Co-Operation Agreement (“MCA”) which provided for: (i) the early termination of the SLA; (ii) for the Company to have full accountability for water services; and (iii) for the Company to take over management and direction of Local Authority Water Services workers who spend more than 50% of their time working on water services. Support services would continue to be provided by the Local Authority. These changes took effect in Q4 2023 for 30 of the 31 Local Authorities, with the final one taking effect in early 2024.
A Licence (the “Licence”) to use the water assets that have not yet transferred to the Company but are listed to do so was granted by each Local Authority to the Company as part of the SLA and MCA. The Licence is a mutual licence enabling both the Company and the Local Authorities to carry out their contractual and statutory functions as if a statutory transfer of the water assets had taken place as anticipated. In return for the Licence, the Company gave the Local Authorities an indemnity for any loss suffered by the Local Authorities as a result of their continuing to legally own the assets. The Licence relates to physical assets (e.g. pipelines, plant and equipment) and does not relate to contracts or entitlements (irrespective of whether they are attaching to such assets). The Licence will continue until the remaining water services assets are transferred to the Company.
(b) Working capital arrangements
The Company has provided the Local Authorities with working capital advances to cover payments which are made by the Local Authorities each month and subsequently recharged to the Company under the agreements at (a) above. Such payments are in respect of salaries, central management charges and a limited amount of goods and services.
(c) Asset acquisition
The water and wastewater infrastructure assets transferred from the Local Authorities to the Company on 1 January 2014. No consideration was paid by the Company for the assets acquired. The Local Authorities were compensated for certain financial assets (including receivables) or charged for certain financial liabilities transferred. Refer to the Statement of Cash Flows for details of receipts and payments made during the year for assets acquired from Local Authorities. Balances outstanding in respect of this transaction are included in the table above.
|
2025 €’000 |
2024 €’000 |
|
Receipts for amounts owed from Local Authorities |
- |
1,075 |
Payments for assets acquired from Local Authorities |
- |
- |
(d) Inventory recognition
During 2024, the Company took operational control of inventory stores and the related inventory in the store, which were previously under the operational control of local authority water services. In accordance with the Company’s inventory accounting policy, initial recognition of inventory held at these facilities at the date of transfer of operational control was recognised at €nil value. Thereafter, subsequent inventory purchases at these facilities were recognised in accordance with the Company’s inventory policy.
Transactions with Government
In common with many other entities, the Company deals in the normal course of business with the Government. In accordance with IFRS, details of such transactions are not included here. However, the Company has disclosed detail in respect of the following significant transactions with the Government.
Notes |
2025 €’000 |
2024 €’000 |
|
Government subvention revenue |
1,242,566 |
1,139,000 |
|
Capital contribution |
801,000 |
571,704 |
|
Minister for Finance facility proceeds |
- |
184,060 |
|
National Treasury Management Agency (NTMA) proceeds |
100,000 |
460,000 |
|
National Treasury Management Agency (NTMA) repayments |
(100,000) |
(460,000) |
In addition;
- The Company received cash capital contributions during the year from the Government, with €514 million received from the Department of Finance and €287 million from the Department of Housing, Local Government and Heritage.
- The Company has State loan facilities in place with the Minister for Finance, which were fully drawn at 31 December 2024 - see note 22 for details.
- The Company also has a working capital facility with the NTMA, which was utilised once during the year with €100 million drawn in March and fully repaid in August. This facility was undrawn at year end and in prior years.
Refund programmes - exceptional items
- Connections refund programme
Following Government announcement in 2023 of the Temporary Time-Limited Waiver in respect of Development Contributions, Uisce Éireann is required to provide a refund for Standard Connection Charges for new residential developments where certain criteria is met. This refund programme is funded by the Government acting in its capacity as government and therefore grant accounting is applied. See note 11 for details of receivables recognised in respect of this scheme.
Note |
2025 €’000 |
2024 €’000 |
|
Grant income received - new connection refund programme |
173,968 |
76,597 |
|
2025 €’000 |
2024 €’000 |
|
Grant income for new connection customer refunds |
170,346 |
82,475 |
Grant expense for new connection customer refunds |
(170,346) |
(82,475) |
Net income statement impact for new connection customer refunds |
- |
- |
- Domestic refund programme
Pursuant to section 22 of the Water Services Act 2017, Uisce Éireann was required to refund to customers €171.7 million in cash which had been previously collected from domestic customers. This customer refund programme was funded by the Government, through a government grant with the sole condition that the funding be used to refund domestic customers and to discharge the associated administration. See notes 11 and 20 for details of receivables and provisions recognised in respect of this scheme.
Note |
2025 €’000 |
2024 €’000 |
|
Grant income received - domestic water customer refund programme |
12 |
24 |
Government bodies
In common with many other entities, the Company deals in the normal course of business with other Government sponsored bodies, such as, the Electricity Supply Board and the Health Service Executive. All transactions are on normal commercial terms.
Key management compensation
Key management for 2025 and 2024 is assessed to consist of the Board, the CEO and the direct reports of the CEO, (representing a full time equivalent of 10.0 headcount for 2025 and 9.63 for 2024).
|
2025 €’000 |
2024 €’000 |
|
Short-term costs |
(2,621) |
(2,536) |
Post-employment costs |
(338) |
(319) |
Total |
(2,959) |
(2,855) |
Directors
The directors and secretary had no beneficial interests in the Company at any time during the year or at the reporting date.