Public Expenditure Minister Paschal Donohoe confirmed that talks on how to pay for the extra expense are only in their very early stages despite a deal being reached on the future of Irish Water before Easter.
After months of talks, political parties earlier this month agreed to a new water services plan which includes refunding water charges.
However, speaking to reporters at an event in Dublin, Mr Donohoe said that he and Finance Minister Michael Noonan have yet to have a substantial discussion on the issue, which he said will have to begin next month when Irish Water legislation goes before the Dáil.
“Minister Noonan and I have not had a substantial discussion on the matter yet. The nature of how and when that will happen will form part of the discussion in relation to the legislation that will emerge from the report that was endorsed from the Oireachtas.
“I expect that legislation to be made public and emerge now across the coming weeks, and as part of that then we will make a decision to refunding our water charges, and in relation to how and when that will happen,” he said.
The Department of Social Protection has previously confirmed that Irish Water took in more than €160m in water charges since its creation.
While this money will have to be repaid under the Oireachtas water committee deal, it is unclear whether it will be in full or balanced against a return to the State of the controversial water conservation grant.