Reports suggest thousands of households could have their average water bills reduced by 100 euros per year.
According to the Sunday Times this morning, the move is being discussed under hardship measures planned by the government.
It's believed Fine Gael and Labour have reached agreement in principle to eliminate a 50 euro standing charge, which was expected to apply to all households regardless of usage.
Negotiations between the coalition on the detail of water charges are continuing with the focus on who will quality for the remediation package.