Water bills set for a 50pc hike to keep up with booming population

Sydney Water argues that it needs to spend $26 billion to safeguard water supply from unprecedented growth — and consumers will pay for it.

Water bills are set to jump by more than 50 per cent over the next five years to keep up with Sydney’s booming population growth.

The Daily Telegraph can reveal that Sydney Water wants to hike the price of water in order to spend more than $26 billion by the end of the decade maintaining and upgrading the network.

Of that, $16.6 billion will be spent on infrastructure, mainly in Sydney’s west.

Almost $10 billion will go to operating costs.

The utility has asked the Independent Pricing and Regulatory Tribunal (IPART) for an 18 per cent price hike next year, followed by yearly increases of 6.8 per cent.

Under the proposal, average water bills would increase by $4.70 per week next year, or almost $250 over the year. Water bills will increase by about $115 each year after that.

A typical Sydney household with a water meter can expect to pay up to $1252 for water this financial year, including fixed charges and usage costs.

Matt and Caitlin Sabjan worry they might have to limit the days they fill up the paddling pool for daughters Delilah and Ellianah if water prices go up. Picture: Sam Ruttyn

The increases will add further pressure to Sydney families battling the cost-of-living crisis amid the rising price of other utilities including energy.

Based on the Australian Energy Regulator’s retail price, a typical Sydney household is paying $1810 for electricity.

In its submission to IPART, Sydney Water argued that it needs to raise money to keep up with growth across an area equivalent to the size of Canberra.

If NSW meets its housing targets, 300,000 additional dwellings will need to be serviced by water infrastructure by 2029, requiring 50,000km of new pipes.

Ageing assets — a quarter of which are “past (the) end of effective life” — need to be upgraded or replaced, and facilities need to be upgraded to “meet environmental standards,” Sydney Water said in its submission.

Some water pipes installed in 1888 are still in use today.

Sydney Water is campaigning to increase awareness and acceptance of recycled water. Picture: LinkedIn

“The urgent need to support a rapidly growing population, and service new housing in greenfield areas, has also pushed our existing capacity to its limits,” Sydney Water Managing Director Roch Cheroux said.

“Our infrastructure needs significant renewal to keep up with today’s demands and to prepare for those of tomorrow.”

Mr Cheroux said Sydney Water is “committed to minimising our costs by reducing operational expenses”.

The majority of the $26.4 billion Sydney Water wants to spend on infrastructure over the next five years will be on wastewater, while operating expenses will largely be drinking water.

The price rises, however, would need to be approved by IPART.

Premier Chris Minns wrote to IPART’s chair Carmel Donnelly in August asking her to consider “cost-of-living pressures” families are facing when making a price determination.

IPART said that it will review Sydney Water’s proposal to ensure costs are kept as low as possible.

Sydney Water will spend $26 billion to upgrade infrastructure, including in Quakers Hill

“IPART’s price reviews will assess whether these proposed cost increases are justified so that customers pay only what water businesses need to efficiently deliver their services to customers,” Ms Donnelly said.

“We will carefully consider the impacts of the price proposals on household budgets, service standards, the environment, and the economy more broadly.”

As part of Sydney Water’s infrastructure plan, the utility wants to expand the desalination plant to double its capacity. It is also considering new desalination plants in the northern beaches and the Illawarra.

Eighty per cent of Sydney’s water comes from Warragamba Dam.

Sydneysiders typically pay less on average than other capital cities for their water supply.

Sydney Water’s long-term plan includes making $1 billion in bill relief available for struggling households.

South Penrith mum of four Caitlin Sabjan said any increase in her water bill would be “scary,” and might stop her kids playing under the sprinkler.

“Already, we’ve just had to find cheaper alternatives … especially groceries,” she said.

“With the weather getting more and more hot, having to stop them from playing in splash pads or the sprinklers, because it’s just using too much water, and water is just so expensive.

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Originally published as Water bills set for a 50pc hike to keep up with booming population