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Sydney Water Annual Report 2009
Corporate governance: Water pricing
 
The price rises in 2009–10 will help pay for desalination, recycling schemes, renewals and new infrastructure for growth.
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In this section:

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Pricing changes

The Independent Pricing and Regulatory Tribunal (IPART) completed a review of prices for Sydney Water’s services in June 2008, setting prices for the period from July 2008 to June 2012. Sydney Water’s prices for 2008–09 are provided in the table below.

In 2009–10, the price for 1,000 litres of water is $1.87, and the water service charge is $102 a year. The residential wastewater service charge is $501 a year. These prices result in the water bill for a typical household using 200,000 litres of water a year increasing by 11.2% or $99 a year in 2009–10.

IPART’s change to the structure of water prices takes effect in 2009–10. The two-tier pricing structure has been replaced with a single water usage charge. IPART stated that recent rain, desalination and increased recycling have eased concerns over water scarcity, reducing the need for the pricing signal provided by the two-tier system.

The price rises in 2009–10 will help pay for Sydney’s desalination project and, two large recycling schemes at Rosehill/Camellia and St Marys in western Sydney, as well as renewals and new infrastructure for growth.

Sydney Water has allocated funding for a range of financial assistance and water efficiency programs. Much of this funding will go towards supporting people who are isolated through age, disability or cultural or language barriers, and those in need of financial assistance.

IPART pricing table

The Independent Pricing and Regulatory Tribunal Act 1992 requires an agency subject to IPART determinations or recommendations to include information in its Annual Report on how determinations have been put in place, whether recommendations have been carried out and if not, a statement of why not.

As Sydney Water’s core water, wastewater and stormwater drainage services and a number of its associated ancillary services are declared monopoly services under section 4 of the Act, their prices must be set following any IPART determined methodologies and/or maximum prices. As well, Sydney Water cannot charge less without prior approval of the Treasurer.

Sydney Water’s implementation of IPART’s Final Determination No. 1, released in June 2008, is shown in the following table.

IPART Pricing Table 2008–09

 

Tribunal maximum price determined

Sydney Water
price

Sydney Water
price set

Sydney Water
price set

 

(in 2008-09 values)

(in 2008-09 value)

aJul-Sep

Oct-Jun

Service charges per quarter

Residential properties

Water

 

 

 

 

Metered

$75.70

$75.70

$18.94

$18.92

Unmetered

$397.70

$397.70

$99.44

$99.42

Sewerage

$480.31

$480.31

$120.10

$120.07

Stormwater
(drainage)

$45.03

$45.03

$11.28

$11.25

Non-residential properties

Water
Meter size (mm):
b

 

 

 

 

20

$75.70

$75.70

$18.94

$18.92

25

$118.28

$118.28

$29.57

$29.57

32

$193.79

$193.79

$48.47

$48.44

40

$302.80

$302.80

$75.70

$75.70

50

$473.13

$473.13

$118.29

$118.28

80

$1,211.20

$1,211.20

$302.80

$302.80

100

$1,892.50

$1,892.50

$473.14

$473.12

150

$4,258.13

$4,258.13

$1,064.54

$1,064.53

200

$7,570.00

$7,570.00

$1,892.50

$1,892.50

250

$11,828.12

$11,828.12

$2,957.03

$2,957.03

300

$17,032.50

$17,032.50

$4,258.14

$4,258.12

500

$47,312.50

$47,312.50

$11,828.14

$11,828.12

600

$68,130.00

$68,130.00

$17,032.50

$17,032.50

Unmetered

$268.90

$268.90

$67.24

$67.22

Seweragec
Meter size (mm):
d

 

 

 

 

20

$480.31

$480.31

$120.10

$120.07

25

$750.48

$750.48

$187.62

$187.62

32

$1,229.59

$1,229.59

$307.42

$307.39

40

$1,921.24

$1,921.24

$480.31

$480.31

50

$3,001.94

$3,001.94

$750.50

$750.48

80

$7,684.96

$7,684.96

$1,921.24

$1,921.24

100

$12,007.75

$12,007.75

$3,001.96

$3,001.93

150

$27,017.44

$27,017.44

$6,754.36

$6,754.36

200

$48,031.00

$48,031.00

$12,007.75

$12,007.75

250

$75,048.43

$75,048.43

$18,762.13

$18,762.10

300

$108,069.75

$108,069.75

$27,017.46

$27,017.43

500

$300,193.75

$300,193.75

$75,048.46

$75,048.43

600

$432,279.00

$432,279.00

$108,069.75

$108,069.75

Unmetered

$480.31

$480.31

$120.10

$120.07

Stormwater
(drainage)

$117.19

$117.19

$29.32

$29.29

Usage charges ($/kL)

Residential properties

Water

 

 

 

 

Tier 1

$1.610

$1.610

$1.610

$1.610

Tier 2e

$1.830

$1.830

$1.830

$1.830

Non-residential properties

Water

 

 

 

 

Tier 1

$1.610

$1.610

$1.610

$1.610

Sewerage
(>500kL wastewater discharge per year)f

$1.370

$1.370

$1.370

$1.370

a – Sydney Water’s charges applied from 1 July 2008.

b – IPART's maximum determined water service charge for meter sizes not specified in its Determination is calculated using the following formula: (meter size)2 x 20mm charge/400.

c – The prices assume the application of a Discharge Factor (df%) of 100%. The relevant df% may vary from case to case, as determined by the Sydney Water Corporation. A pro rata adjustment shall be made where the df% is greater or less than 100%.

d – IPART's maximum determined sewerage charge for meter sizes not specified in its Determination is calculated using the following formula: (meter size)2 x 20mm charge/400 x df%.

e – For individually metered residential properties, the Tier 2 price will apply when a property's water consumption exceeds approximately 100kL/quarter (1.096kL/day multiplied by the number of days between meter readings).

f – For non-residential properties, the sewer usage charge will apply when a property's discharge into the sewerage system exceeds 125kL/quarter (or 1.37kL/day average)

Note: All Sydney Water prices are in nominal dollars ($ of the year).

Other charging arrangements including Rouse Hill Development Area, exempt properties, metered standpipes, Blue Mountains septic pump out fees, trade waste and ancillary charges were set in accordance with IPART’s determined maximum price.

Time for payment of accounts

As a result of the financial crisis, increasing numbers of customers needed help to pay their bills. In 2008–09, there was a 25% increase in the number of requests for instalment or deferred payment arrangements. Most requests were for short-term extensions of time to pay.