North East Water

Water charges will rise on 1 July when the second phase of North East Water’s five-year pricing plan comes into effect.

North East Water customers will begin paying $1.56 per kilolitre for water at the start of the financial year - up from $1.13 in 2008-09 - with accompanying increases in water service charges of around 11%.

The Corporation’s Chief Financial Officer, Anthony Hernan, said that while water prices were rising, charges for wastewater services were remaining at current levels.

“Overall, the increase will see the average customer bill increase by about $2 a week, or $26 a quarter” he said.

“These increases are required to ensure we can continue to deliver quality services and invest in important infrastructure upgrades.”

Mr Hernan said the Water Plan 2008-13 was the Corporation’s blueprint for future pricing under the economic regulation of the Essential Services Commission (ESC), and also included a series of capital projects to improve service quality for customers.

“The process of formulating the Water Plan involved extended consultation and opportunities for community comment on the draft decision, our Board and the ESC took very seriously the public submissions received,” he said.

One of the key strategies of the Water Plan 2008-13 is to phase in a pricing mechanism to encourage water conservation and allow customers to exercise more control over the size of their bills.

“The drought has emphasised the importance of structuring our tariffs to ensure the volumetric (metered) prices reflect the value of the precious resource.  Doing this enables us to limit the increase in fixed charges.”

Mr Hernan said, “We are in the process of moving from 65% to 35% fixed charges under the new pricing mechanism and volumetric charges will make up a larger percentage of the bill than fixed service charges”.

“With this price increase we’re continuing to improve customers’ control so that how much they pay is dependent on how much water they choose to use,” he said.

Mr Hernan said the Water Plan 2008-13 contained more than $100 million in capital projects to be undertaken during the period.

“Among the projects are upgrades of water treatment facilities in Bright, Myrtleford, Mt Beauty and Wodonga, which are already underway, construction of a large raw water storage to service Bright and Porepunkah, and improving wastewater treatment facilities in Beechworth,” he said.

“These are projects that will significantly improve services for many people throughout the region,” he said.

“The Corporation understands that many customers may be experiencing financial hardship and recognise the need to balance the cost of services.  Anyone facing difficulties paying their bills should contact North East Water for assistance and advice” Mr Hernan said.

Tariff increases overview:

For information, call Naomi Laauli, Community Engagement Coordinator, 1300 361 622