Central Coast water bills: Residents to have say on IPART’s draft decision on water prices

Central Coast Council will not be granted a 34 per cent increase in water prices, however it looks like our water bills could still substantially rise this year.

Water bills for Central Coast residents are set to rise by an extra $200 in 2022 with further increases to follow.

The Independent Pricing and Regulatory Tribunal (IPART) has released its draft decision on what it will allow Central Coast Council to charge for water services from July 1 2022.

It comes as coast residents also wait to hear if IPART will approve council’s proposed extension of its 15 per cent rate rise for another seven years.

In September 2021, the council applied to IPART to substantially increase its water, sewerage and stormwater drainage pricing by 34 per cent to bring prices back in line with levels from 2018/19.

Average household bills across the coast will rise by $200 per year.

IPART has not approved council’s proposed hike, however the draft decision announced on Tuesday means the yearly bill for a typical household would increase by around $200 on July 1. The bill would then increase by around $49 per year, before inflation, until 2025-26.

“Our draft decisions recognise the genuine need to invest in quality water services on the Central Coast,” IPART Chair Carmel Donnelly.

“It is critical that our draft prices are accompanied by improvements to CCC Water’s performance and accountability for that performance.

“Our draft decisions on prices would increase typical household bills, but not by as much as CCC Water proposed.”

IPART revealed it had received strong community feedback and objections against the water rise.

In December 2021, IPART revealed it had received strong community objection to council’s 34 per cent water service increase with people against council’s performance, accountability and transparency following the financial crisis, as well as affordability.

“Customers have told us that price and bill increases may cause affordability concerns in the community,” Ms Donnelly said.

“We have phased-in the price increases over the next four years to give customers more time to manage the impact.”

She said IPART had balanced customer concerns about price increases with the need to ensure Central Coast Council Water has enough funding to improve the service and maintain assets.

Locals are looking at a water rise while also waiting to see if the council’s 15 per cent rate increase in 2021 will be extended for another seven years.

IPART is also keen to make Central Coast Council’s water services more accountable, recommending the council publish regularly reports on its performance to the community. They are seeking to review the council’s performance in two years.

Council’s reasons for the significant water pricing increase is to return prices back to the levels from 2018/19.

Findings into the council’s financial crisis revealed that IPART’s decision to decrease water prices in 2019 resulted in an annual loss of $39m to the council. This has been highlighted as one of the contributing factors in the crisis.

Have your say on the water prices here. Submissions close April 14.