The Independent Pricing and Regulatory Tribunal (IPART) has released its final decision on Sydney Water prices, anticipating that the changes will bring a reduction in household costs.
The Tribunal said a typical Sydney Water household’s bill would fall by $80, or seven per cent, from 1 July.
“From 1 July 2020 the price you pay for water will depend on dam levels,” the Tribunal said.
“While dam levels are above 60 per cent, you will pay $2.35 per kilolitre of water you consume,” it said.
“But if dam levels fall below 60 per cent, this price will rise to $3.18 per kilolitre.”
IPART said its decision reflected the increased costs of supplying water in periods of scarcity, and provided a stronger reward to households who conserved water in a drought.
“At the same time, the total fixed charge for water and wastewater will fall from over $700 a year to about $580 a year for a typical household, so that bills remain affordable for customers,” it said.
“The prices will allow for a record $4.6 billion in capital expenditure by Sydney Water over the next four years, a $1.4 billion increase relative to the $3.2 billion Sydney Water invested over the past four years.”
The Tribunal said that while recent heavy rains had replenished Greater Sydney’s water storages, there was still a need for considerable investment to improve Sydney’s water resilience for the future.
“It is important that the utilities and the NSW Government undertake co-ordinated long-term planning to ensure we have an affordable, sustainable and secure water supply to cope with climate change and drought,” it said.
IPART also released other review price reports on Hunter Water and Bulk Water for Greater Sydney applying a similar pricing structure to both.
The Tribunal’s 353-page report Review of Prices For Sydney Water can be accessed at this PS News link.
