21/08/2017 - 15:38

Water costs need to rise, sewerage to fall: ERA

21/08/2017 - 15:38

Bookmark

Save articles for future reference.

A further 4 per cent rise in metropolitan water usage charges will be needed for the 2019 financial year to ensure pricing is cost reflective, according to a draft report by the Economic Regulation Authority.

Water Corporation would need to alter its pricing system under the changes. Photo: Attila Csaszar

A further 4 per cent rise in metropolitan water usage charges will be needed for the 2019 financial year to ensure pricing is cost reflective, according to a draft report by the Economic Regulation Authority.

The report, which is reviewing efficient pricing at Water Corporation, recommended the increase on top of a 6 per cent rise for the 2018 financial year recently gazetted by the state government.

But it would not be entirely bad news for households, with wastewater costs to fall by 41 per cent and drainage to be reduced by 4 per cent, which the authority calculates would leave the average family better off overall by $260 per year.

Part of the reform process would involve implementing a flat rate charge for water usage that reflected long-term supply cost, a move away from the existing system where prices are stepped up depending on the volume consumed.

Economic Regulation Authority chair Nicky Cusworth said a simple single rate would provide increased incentive for future investment in new technologies

“It may also encourage new business models for recycling wastewater,” she said.

“Businesses and households in about 40 per cent of the metropolitan area pay drainage services determined as a percentage of the value of the gross rental value of the property.

“Consideration could be given to levying drainage charges on all of the Water Corporation’s customers in the metropolitan area.

“The purpose of this change would be to share the costs of drainage that provides benefits to everyone, such as improved water quality in the Swan River.”

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options