Environment Minister Alan Kelly told the Dáil yesterday that the existing charges will be scrapped and replaced by a new regime in January.

Homes with a single adult will have their bills capped at €160 a year - but homes who do not register will be given standard bills of €260 a year.

All water households will also receive water conservation grant of €100.

PPS numbers will no longer be required for registration, and those that were already taken will be destroyed.

Registration with Irish Water extended until February 2nd and water charges will not begin until January of next year.

However, some of the issues caused slight confusion, particularly on the issue of PPS numbers and penalties.

Newstalk's Páraic Gallagher breaks down the main points from the debate yesterday:

The main points of the announcement were:

• New capped annual charges €260 for family household and €160 for single household until January 2019
• All water households will receive water conservation grant of €100.
• PPS numbers will no longer be required for registration.
• Water charges will not commence until January 1 next
• These charges are affordable - 3 euro per week for families, among lowest in Europe
• A meter can only save a household money, according to Alan Kelly
• If people save 10-15% of water they use they can "beat the cap"
• Households who don't register with Irish Water will receive an automatic bill of 260 euro per year
• Registration with Irish Water extended until February 2nd
• No call out or service charge from Irish Water
• If households have an internal leak they should do what they always did - "call a plumber"
• Registration is now a self-declaration scheme and will be audited
• Irish Water told to destroy PPS Numbers gathered with independent verification for data protection
• Kelly intends to legislate to remove the power to cut off/cut to a trickle water supply for those who don't pay
• Instead of cut offs there will be late payment penalties added to bills 3 months following a year of non-payment
• To avoid any doubt, Kelly stated it is the occupier of a premises who must pay the bill
• Introducing legislation to allow landlords deduct unpaid water bills from deposits if necessary
• Irish Water must distinguish between those who want to pay and can't, and those who refuse to pay
• Number of installed meters has now hit half a million
• It will be possible for per unit price of water to be REDUCED for 2017 and 2018
• Legislation will be introduced to ensure that water charges after 2018 can still be capped
• Privatisation not the will of the people, will introduce legislation to ensure if any future Government sought to change position it would be required to put it to the people in a referendum. 
• Government to establish a new public/bill-payers forum to advise Irish Water on service expectations and provide feedback on investment priorities
• Irish Water needs to invest around 600 million euro per year. Irish Water needs to be able to do this with money itself so it is not in same queue as hospitals, schools and welfare benefits for funds. Exempting Irish Water from Local Authority rates. Local authorities will be compensated from my Department for loss of Revenue.