Wicklow County Council has called an emergency meeting after it emerged that water charges due to Dublin City Council could increase by 300 per cent once new legislation takes effect.
Although Wicklow's drinking water is sourced in the county, it is treated and redistributed by the Dublin council.
Under a complex system dating back to the 19th century, Wicklow, including Bray and Greystones, currently pays for only part of the water supplied to it, amounting to €0.5 million annually.
However, the Water Services Act 2007, due to be implemented shortly by Minister for the Environment and Local Government John Gormley, will repeal all previous arrangements.
It will allow local authorities to charge market rates for the water they supply to other authorities.
Wicklow County Council anticipates it will have to pay €2 million annually to the Dublin council.
Philip Duffy, senior executive officer with Wicklow County Council's water services section, said that under the new legislation, local authorities were entitled to stop supplying water to other local authority areas.
"Technically, this means Wicklow County Council will have to buy water back from Dublin," he said.
The councils were currently in negotiation and were attempting to reach an agreement on costs, he said.
Mr Duffy added that under the new legislation, local authorities were also required to draft and introduce strategic water plans, which could delay the implementation of the charges.
Wicklow County Council's cathaoirleach, Anne Ferris, said yesterday that councillors would be calling for a subvention from central government funds.
"If the Minister allows them to charge us the full whack, we will look for government funding to offset the expense," she said.
"If we have to pay it and get no subvention, what services will we have to cut back on?"
Wicklow and Bray councillor Ciarán O'Brien (Green Party) said the levels of annual subventions to both councils under the Local Government Fund should be adjusted pro-rata to minimise the net financial impact.
"I would like to point out to the respective Wicklow and Dublin officials the urgency of providing the data at an early date to enable local funding to be adjusted in time for the 2008 estimates round," he said.
The emergency council meeting will be held on Wednesday afternoon.
