BY ALICE PEART AND MADELAINE MCNEILL
Wallsend MP Sonia Hornery has asked the state government to explain why Hunter Water has applied to IPART for an in increase in rate pricing.
The MPs question, posed to Parliament on Thursday, followed Hunter Water's announcement it has applied for the increase to assist with the investment of more than $871 million dollars in infrastructure, technology and services over the next five years.
If the rate increase is approved, water bills could increase by roughly $60 a year, or $1.15 per week.
In a statement, Sonia Hornery claimed the potential price hike was an attempt by the state government to "raid the coffers" of Hunter residents.
"Earlier this year, the Treasurer ripped $100m out of Hunter Water," said Ms Hornery, referring to a dividend paid to the government by the corporation.
In order to pay the dividend, Hunter Water borrowed the funds from NSW Treasury Corporation, leading the MP to question whether residents were being lumped with the debt.
"Despite assurances by the Government that prices would not be impacted by the additional dividend, Hunter Water has now made an application to IPART to increase water prices over the next 5 years," Sonia Hornery said.
A spokesperson for Hunter Water has clarified the corporation's decision to apply to IPART has no link to the dividend, and distributions from Hunter Water do not impact on customer pricing, services or capital investment levels.
Editor's Note: An earlier version of this story incorrectly implied the cost of the dividend paid by Hunter Water was being passed onto residents through a proposed price increase. The article has been updated for accuracy.
