Sydney residents are being asked to pay 50 per cent more for their water bills over the next five years as Sydney Water says infrastructure has struggled to keep up with the city’s booming population.
The water supplier, a state-government-owned asset, has proposed an 18 per cent increase in water bills in the next financial year, followed by yearly rises of 6.8 per cent – plus inflation.
The typical household bill would increase by $235 next year and then by $213 over the next four years.
An average bill of $1308 today would increase to $2037 by 2029-30. Indicative bills for the next price review between 2030 and 2035 suggest smaller rises.
In a 546-page submission to the Independent Pricing and Regulatory Tribunal (IPART), Sydney Water’s managing director Roch Cheroux said the changes were essential to “manage Sydney’s water future”.
He said the utility’s “ageing assets, population growth and climate change resulting in more unpredictable and extreme weather events” were the key drivers of the changes.
As Sydney has dramatically grown over the past decade, much of the water supply for new suburbs and high-density developments has come from existing infrastructure – but that infrastructure is reaching its capacity, the submission said.
The utility will spend $16.6 billion over the five years on new infrastructure, mostly in Sydney’s west.
“Whilst we recognise that our proposal is larger in scale and scope than preceding ones, we believe it is the right proposal to help navigate the many challenges we face and create a better life with world-class water services now and for the future,” he wrote.
“However, our commitment to supporting our customers through payment support programs and rebates remains unwavering.”
Submissions on the matter are open until Monday December 9, and a more complete draft report will be created by March. The increases would take effect in June next year.
Sydney Water has been partly blamed for the slow development of new builds in the city.
Its board was recently ordered to “get with the program” by the state government, with NSW Water Minister Rose Jackson labelling the company “a big problem” when it came to being able to release land for greenfield development.
According to a letter released by the government, Premier Chris Minns wrote to the chair of IPART in August requesting it consider “the cost-of-living impacts of the price determinations” and the effectiveness of rebates that manage the social impacts of price increases.
NSW executive director of the Property Council of Australia Katie Stevenson said the group was “very supportive” of Sydney Water’s proposal because the delivery of new homes depended on new water infrastructure.
“The state and federal governments have committed to building almost 400,000 new homes. We can’t do that without some change, so it’s vital we continue on this path,” she said.
Urban Development Institute of Australia director Stuart Ayres said: “Water pipes are required for new homes. If we want more housing supply, Sydney Water needs to be able to fund new pipes.“
“Government now needs to balance these infrastructure cost between taxpayers and consumers.”
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