Many senior coalition members are also said to be considering changing the structure of the company in an effort to defuse the public's growing opposition to water charges.
It comes as it's revealed today Irish Water plans to charge householders a minimum callout charge of 188 euro for a suspected water leak.
While the first fix will be free, a second call-out will not be. The new utility company is also looking to charge 220 euro to test water pressure and a 17 euro fee for a special meter reading.
Group Political Correspondent at Independent News and Media Daniel McConnell says a blame game is now underway between Irish Water's CEO John Tierney and some senior Government figures.