A GOVERNMENT minister has admitted there is a "risk" around the new water charges plan passing EU rules.

Communications Minister Alex White said he was confident the cost of water would be kept off the balance sheet by passing the Eurostat test.

"Of course there is a risk around whether this will pass the test," he said.

When pressed by Sinn Fein's finance spokesman Pearse Doherty on the issue, Min White re-iterated his confidence that the test - which has implications for the €100 conservation grant - would pass.

Meanwhile, Taoiseach Enda Kenny is gambling on the majority of householders accepting the new lower water charges package to halt the Coalition's slide in support.

Following months of backtracking, the Coalition now insists "reasonable people" will pay the lower bills.

In a bid to stop mounting protests across the country, Mr Kenny is also banking on workers seeing a rise in their take-home pay when Budget 2015 tax cuts kick in, which he says will more than compensate for the cost of family water bills.

But punitive sanctions will be imposed on householders who refuse to register with Irish Water - costing them €1,600 over the four years of the fixed charge plan.

The new water charges package will mean families pay a maximum of €160 a year for the next four years.

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But those who refuse to pay face being hit with a double charge of €320 each year, coupled with rolling penalties.

The new structure of reduced charges will also result in the taxpayer paying an additional €190m in supports to householders and Irish Water.

The Government insisted water charges are among the lowest in Europe, and the measures will alleviate pressure on the Coalition in the wake of mounting opposition.

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Anti-water campaigners warned that opposition would continue.

Environment Minister Alan Kelly admitted there would still be a cohort of people who would refuse to pay.

"We think reasonable people will come with us. We want to give a space for people to consider this," he said.

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It also emerged yesterday that Mr Kelly had received two new death threats made anonymously to both his Dail and constituency office. Gardai are now investigating four threats made to Mr Kelly's life.

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The main points that were announced yesterday include:

* Charges will be capped for a single adult household at €160 and at €260 for all others until the end of 2018.

* Householders who register will receive an annual €100 Water Conservation Grant, which can be used to reduce bills or install water-saving devices.

* But the first €100 grant will not be paid until after September, meaning families will have to meet the costs in the meantime.

* Charging will not begin until January next. The first bills will land in April.

* The tariff per 1,000 litres has been reduced from €4.88 to €3.70.

* Customers with meters who use less than the flat-rate charge will receive a rebate on their bills.

* PPS numbers will not be required.

All data already received will be deleted under the supervision of the Data Protection Commissioner and independently verified.

* A new forum made up of customers will be established to advise on expected service levels.

* Landlords will be given powers to withhold tenants deposits to meet unpaid bills.

* A referendum will be needed if a future government plans to privatise Irish Water.

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Fianna Fail leader Micheal Martin said the measures were the "latest of a dozen U-turns and a massive climb-down".

But householders who refuse to register will be hit with a default charge of €260 a year - and €60 will also be added to bills for every year of non-payment.

Over the course of the four years of the initial water charges plan, this means that unpaid bills and penalties will add up to a total €1,640.

Taoiseach Enda Kenny said the water charges package gave "certainty, clarity and predictability".

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He said the water charges amounted to €1.15 a week for a single person and €3 a week for all other households.

Mr Kenny also said the tax cuts in Budget 2015 for an average worker will easily cover the cost of water charges.

He said he regretted the "anxiety and concern" the water charges controversy caused.

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Legislation will be introduced allowing charges to be capped beyond 2018. It will be introduced before the end of the year.

Irish Water and its parent company Ervia welcomed the Government's announcement, saying it had given "much needed clarity" to the public.

Its managing director John Tierney again apologised for not responded quickly enough to "legitimate concerns" on a number of issues.

The company will now rely on Government subsidies, incomes from bills and borrowings.

Irish Independent