BY ISABEL EVERETT
A typical Hunter Water
household’s bill will fall by $48 per year or 3.6% from 1 July, as a result of
decisions released today by the Independent Pricing and Regulatory Tribunal
(IPART).
From 1 July 2020 the
price Hunter residents pay for water will depend on water storage levels.
If water
storage levels are above 60% as they are now, customers will pay $2.46 per kilolitre
of water they consume.
But when water storage levels fall below 60%, this
price will rise to $2.90 per kilolitre.
“This decision reflects
the increased costs of supplying water during periods of scarcity, and provides
a financial reward to households who conserve water during times of drought,”
said IPART Chair Dr Paul Paterson.
IPART say, fixed charges for water
services are falling dramatically, from over $100 a year to about $24 a year
for a typical household.
“We are giving customers
more control over their bills. The substantial reduction in the fixed
water service charge means people with low water use will have smaller bills
than before,” said Dr Paterson.
Mr Paterson say's IPART’s prices
will allow for $653 million in capital expenditure by Hunter Water over the
next four years, a $255 million increase compared to its capital expenditure
over the last four years.
It's hoped the increase will allow Hunter Water to
maintain its infrastructure and service , and improve environmental
compliance and outcomes, and allow it to fund the planning of future drought resilience projects.
“With many customers
facing economic challenges, we are conscious of the need to ensure water bills
are affordable while providing Hunter Water with the revenue it needs to
maintain a safe and secure water supply.”
“Our pricing decisions
provide incentives for all customers to conserve water all of the time, while
ensuring that customers only pay for the additional costs of drought when
necessary”, Dr Paterson said.
“It is important that
Hunter Water and the NSW Government undertake joint planning for the future, to
safeguard our water supplies against climate change and drought.”
IPART’s report on Hunter
Water’s prices and those for Sydney Water and Water NSW as well as an
interactive bill calculator are available on IPART’s website.
