Rising electricity costs add €650,000 to council bills

It’s not just businesses and households that are feeling the effect of the increased cost of electricity: the rising costs added €650,000 to Westmeath County Council’s bills last year, council finance officer Jimmy Dalton has informed county councillors.

Going through a report of the council’s finances for 2022 at a meeting on Monday January 30, Mr Dalton said that around €450,000 of that energy costs rise came in the second six months of the year.

“As you are no doubt aware, wholesale prices are coming down and that is positive – but having said that, they’re coming down from an enormous height,” he stated, going on to add that standing in the way of that is the “hugely concerning” fact that there is no apparent end in sight to the war in Ukraine.

Another challenge the council ha face is a drop in the amount due every year in rates. Since the revaluation of the county’s businesses for rating purposes, 115 appeals by firms unhappy with their new valuations have been dealt with – and the outcome has meant an annual loss in rates income of around €479,000.

“We await the outcome on the remaining six appeals which, in total, carry an annual rates value of circa €78,000,” Mr Dalton said.

He went on to remind members that in recent years Valuation Tribunal decisions on valuations of ESB Networks, Irish Water (Uisce Éireann), Three and Vodafone have also resulted in lost rates income to the council.

“On 22 November 2022 we were advised by the minister for housing, local government and heritage of support of €400,131.40 covering losses incurred up to the end of 2022. While it is clear that the support is on a one-off basis only, it is a hugely positive outcome for the council.”

Some positives, however, are that planning fee income amounted to €556,826 for 2022 against a budget of €300,000, a surplus of circa €257,000.

Non-principal private residence (NPPR) income amounted to €378,083 for 2022 against a budget of €189,800, a surplus of circa €188,000.

Rent hike

Mr Dalton reminded members that local authority tenants in Westmeath were facing a rise in their rents from Saturday February 4.

Rental income from the council’s housing stock amounted to €6.90m for 2022 against a budget of €6.64m, a surplus of circa €260,000, but for 2023, the income budgeted for by the council is €7,392,660, to be achieved by the implementation of a rent review.

Mr Dalton said that any increase in rent arising from the rent review (which is based on qualifying income of the household) is being restricted to the lesser of €20 per week or 25% of current weekly rent.

Grants

Mr Dalton revealed that in the last year, Westmeath has benefited from allocations from 15 grant schemes launched by the government. The most recent of those is the Community Recognition Fund (CRF), announced on January 24, under which Westmeath is to receive €1,649,996 to support the development of community infrastructure and facilities in recognition of the contribution being made by communities across the country in welcoming and hosting significant numbers of arrivals from Ukraine and other countries.

Reactions

Council cathaoirleach, Cllr Aengus O’Rourke, asked that as the council tenants are notified of the changes in their rent, the letters sent to them set out clearly the basis on which the adjustments are being made.

Cllr Mick Dollard asked what the cost is of bringing “void” council properties back into use ready for renting; and Cllr Ken Glynn remarked that there is concern among tenants over the rent hikes.

Cllr John Dolan asked if the council has a payment plan in place for businesses that are in arrears with their rent, while Cllr Paul Hogan was “disappointed that some of “the most profitable companies in the country” were on the list of those who had their rates obligations cut.

He was particularly “sickened” over the ESB, which had a profit of more than €350m over the first six months of last year but was “squabbling” over its relatively insignificant bill to Westmeath County Council.

Cllr Denis Leonard was concerned about small and medium businesses struggling to pay their rates.

Cllr Tom Farrell was also concerned about those in rates arrears and about tenants facing rent increases.

Responding to the queries from councillors, Mr Dalton said that the median amount owed in arrears is €144, meaning half of those in arrears owe less than €144, and half owe more than that.

There was a small number of tenants with significant arrears, and there is a hardship clause that the council applies from time to time if tenants are prepared to engage.

He said the average cost of refurbishing a void property is €20,000.

He also said the council does not “go in hard” on ratepayers who are in arrears and who are willing to engage, and for many, there are payment plans in place.