By Tony Moore
Water bills will increase by $61 for Brisbane households next year, Queensland Urban Utilities announced this morning.
However, the water retailer said bills would drop in Ipswich, the Lockyer Valley, Scenic Rim and Esk.
Brisbane households will soon pay about an extra $5 a month for water.Credit: Paul Jones
The charges amount to approximately an extra $5 a month for Brisbane households. The state government's bulk water charge is set to increase about $40 across all southeast Queensland councils.
Councils and the state government have been involved in a long-running war of words over the impact of sharply rising water bills on southeast Queensland residents.
Councils have pointed to government's big increases in bulk water costs, while the state government has accused council-owned retailers of price-gouging.
In April, Premier Anna Bligh announced the councils would have the option of withdrawing from QUU and instead decide to directly charge ratepayers for water.
QUU is owned by five southeast Queensland councils: Brisbane, Ipswich, Lockyer Valley, Scenic Rim and Somerset.
Under Ms Bligh's revised plan, the state government would continue to operate the southeast Queensland water grid and will still provide the bulk water that the water utilities or councils then supply to residents.
Councils will be able to opt out of their utility company and go back to distributing and retailing water as a business unit of their council.
The government will impose a limit to ensure non-state government water charges do not rise above inflation over the next two financial years.
QUU chairperson June Munro said the organisation wanted to reduce the pressure on flood-affected rural areas.
‘‘We have done our darndest to keep these bills as low as possible,’’ she said.
The company’s CEO, Noel Faulkner, said the increases in Brisbane would be lower than CPI.
He said the increase in the price of bulk water increased from 12.7 per cent to 18.8 per cent across the different council areas.
‘‘It reflects the work that the state government has done in water security for southeast Queensland,’’ he said. ‘‘But at the end of the day someone has to pay.’’
Liberal National Party leader Campbell Newman said state government bulk water charges were largely causing the bills to rise.
"I think this really again demonstrates what's driving the cost of water and sewerage bills in southeast Queensland," he said.
Mr Newman said two-thirds of the $61 increase for Brisbane was a result of the bulk water price rise.
He said the LNP had a plan to cut water bills, including combining water bureaucracies and handing water retailing back to local governments.
Mr Faulkner said QUU would increase infrastructure spending in new pipes and sewerage plants by 21 per cent in 2011-12, increasing investment to $341 million.
QUU has found $50 million in cost savings, primarily through a staff freeze with numbers dropping from about 1250 to 1100 in 2010-11.
Brisbane $61.26 increase: QUU water charges increase $6.72; the state government’s bulk water charge increase $39.78; QUU sewerage charges increase $14.76.
Ipswich $1.06 decrease: QUU water charge decrease $41.42; the state government’s bulk water charge increases $40.68; QUU sewerage charge decrease $0.32.
Lockyer Valley $48.52 decrease: QUU water charge decrease $101.83; the state government’s bulk water charge increases $40.23; QUU sewerage charge increase $13.08.
Scenic Rim $22 decrease: QUU water charge decrease $58.98; the state government’s bulk water charge increases $39.78; QUU sewerage charge decrease $2.80.
Somerset $0.39 decrease: QUU water charge decrease $6.51; the state government’s bulk water charge increase $39.63; QUU sewerage charge increase $33.52.
with Daniel Hurst