ID :
207571
Fri, 09/16/2011 - 16:08
Auther :
Shortlink :
https://oananews.org//node/207571
The shortlink copeid
Sydneysiders face 15% water price hike
Sydney(AAP)-16.09.2011-A proposed price hike would push up Sydneysiders water bills by 15 per cent over four years.
Average household water bills could rise by about $166 before inflation by 2015/16 under proposals by Sydney Water, though the opposition estimates the added burden would be $280 after inflation.
Sydney Water outlined the hikes in its pricing submission to the Independent Pricing and Regulatory Tribunal (IPART), released in Sydney on Friday.
Prices needed to rise by about 15 per cent above inflation over four years for Sydney Water to remain financially viable, Sydney Water Managing Director Kevin Young told reporters.
"It's a price proposal, not a decision. There will be a thorough process with IPART that starts today," he said.
The tribunal is reviewing the prices Sydney Water intends to charge customers from July 1 next year.
Finance Minister Greg Pearce said the government would make a submission to IPART recommending lower prices.
"The NSW government is concerned that about 30 per cent of the increase represents maintenance and upgrading costs," Mr Pearce told reporters.
"That's because the previous Labor government failed to invest sufficiently in infrastructure."
But the opposition said the government's insistence on achieving higher profits at Sydney Water had led to the proposed price hikes.
Opposition leader John Robertson said water bills would increase by $280 over four years.
"Barry O'Farrell signed the statement of corporate intent that insisted on profits increasing in Sydney Water by 78 per cent," Mr Robertson told reporters in Sydney.
"The only way that can be achieved is if you increase water bills."
Sydney Water said price rises were needed to maintain and renew water networks, expand infrastructure and adjust for falling water sales.
"Like any typical household we are also seeing substantial pressures through energy costs, chemicals, contracts and labour," Mr Young said.
"Most of the assets that we use for water and wastewater systems were constructed after the first and second world wars."
Sydney Water has made a commitment to keep operating costs stable, with a $40 million efficiency savings target over the four-year period, he added.
"That will be a difficult target, but one the organisation is committed to."
Under the proposals, the water and wastewater bill for a typical household using 200kl of water a year would rise from $1105 in 2011/12 to $1271 in 2015/16, plus inflation.
Water usage charges would rise from the current price of $2.10 to $2.35 per kilolitre by 2015/16, while the wastewater residential service charge would rise from $540 to around $639.
Of the $166, $55 will go towards renewing and replacing Sydney Water infrastructure, $45 for expanding infrastructure for the Sydney region, $41 for revenue adjustment, $15 for enhanced environmental standards and $10 for other costs, including the carbon tax, Mr Young said.
Sydney Water provides water services to more than 4.4 million people in the Sydney, Illawarra and Blue Mountains regions.
IPART will make its final pricing determination in June 2012.
Average household water bills could rise by about $166 before inflation by 2015/16 under proposals by Sydney Water, though the opposition estimates the added burden would be $280 after inflation.
Sydney Water outlined the hikes in its pricing submission to the Independent Pricing and Regulatory Tribunal (IPART), released in Sydney on Friday.
Prices needed to rise by about 15 per cent above inflation over four years for Sydney Water to remain financially viable, Sydney Water Managing Director Kevin Young told reporters.
"It's a price proposal, not a decision. There will be a thorough process with IPART that starts today," he said.
The tribunal is reviewing the prices Sydney Water intends to charge customers from July 1 next year.
Finance Minister Greg Pearce said the government would make a submission to IPART recommending lower prices.
"The NSW government is concerned that about 30 per cent of the increase represents maintenance and upgrading costs," Mr Pearce told reporters.
"That's because the previous Labor government failed to invest sufficiently in infrastructure."
But the opposition said the government's insistence on achieving higher profits at Sydney Water had led to the proposed price hikes.
Opposition leader John Robertson said water bills would increase by $280 over four years.
"Barry O'Farrell signed the statement of corporate intent that insisted on profits increasing in Sydney Water by 78 per cent," Mr Robertson told reporters in Sydney.
"The only way that can be achieved is if you increase water bills."
Sydney Water said price rises were needed to maintain and renew water networks, expand infrastructure and adjust for falling water sales.
"Like any typical household we are also seeing substantial pressures through energy costs, chemicals, contracts and labour," Mr Young said.
"Most of the assets that we use for water and wastewater systems were constructed after the first and second world wars."
Sydney Water has made a commitment to keep operating costs stable, with a $40 million efficiency savings target over the four-year period, he added.
"That will be a difficult target, but one the organisation is committed to."
Under the proposals, the water and wastewater bill for a typical household using 200kl of water a year would rise from $1105 in 2011/12 to $1271 in 2015/16, plus inflation.
Water usage charges would rise from the current price of $2.10 to $2.35 per kilolitre by 2015/16, while the wastewater residential service charge would rise from $540 to around $639.
Of the $166, $55 will go towards renewing and replacing Sydney Water infrastructure, $45 for expanding infrastructure for the Sydney region, $41 for revenue adjustment, $15 for enhanced environmental standards and $10 for other costs, including the carbon tax, Mr Young said.
Sydney Water provides water services to more than 4.4 million people in the Sydney, Illawarra and Blue Mountains regions.
IPART will make its final pricing determination in June 2012.
