Outrage as Sydney water bills expected to increase by 50% next year

As the cost of living crisis continues to cripple everyday Aussies, residents of one city may see their monthly water bills increase by a staggering 50 per cent.

Sydney residents may have to start forking out an extra 50 per cent for their water bills over the next five years as the cost of living crisis continues to drown everyday Aussies.

Sydney Water has proposed an 18 per cent increase in water bills over the next financial year, and a further 6.8 per cent increase every subsequent year.

The proposed change amounts to a $4.70 increase every week for the average water user, totalling more than $250 over the span of a year. Every year after that, water bills are set to increase by $115.

Sydneysiders are going to pay more for their water every year if the proposed changes are approved.

According to The Daily Telegraph, Sydney Water plans to increase its price of water to support its network upgrade, which is predicted to cost more than $26 billion over the next five years.

Almost $10 billion will be funnelled into operation costs, and $16.6 billion will be spent on infrastructure, focusing on western Sydney.

Sydney Water managing director Roch Cheroux said the utility’s “ageing assets, population growth and climate change resulting in more unpredictable and extreme weather events” were some of the key reasons for the upgrade.

The NSW government’s housing plan is set to deliver nearly 400,000 new dwellings across the state by 2029.

As the city expands, many of the newer suburbs are relying on old and outdated infrastructure for its water, which is now reaching its limit.

The housing target may can only be delivered if 50,000km of new pipes are installed.

Sydney residents could see dramatically increased water bills.

The majority of the $26 billion budget will be spent on wastewater, with the operating costs mostly aimed at drinking water.

“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,” said Mr Cheroux.

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

Sydney Water will not be able to increase its prices unless it receives approval from the independent Pricing Regulatory Tribunal (IPART).

The 546-page proposal was issued to IPART, with Tribunal chair Carmel Donnelly confirming it 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 IPART will examine whether the prices “are in the interests of customers” and “promote value for money”.

The increased cost would be felt next year if approved.

Sydney Water’s executive general manager of customer experience, Denisha Anbu, said it doesn’t “take price rises lightly” and “recognise(s) the impact on our customers.”

As part of the five-year plan, she said Sydney Water will set aside $1 billion to support customers who “need it the most”.

“We need to remember Sydney Water’s prices are amongst the lowest in the country - apart from inflation they haven’t been increased for the last 10 years,” said Ms Anbu.

“Even with this proposed price rise, we will continue to be amongst the lowest in the country.”