AUSTRALIAN HOUSEHOLDS TO PAY THROUGH THE NOSE

Australian households are in for a shock when water bills rise by more than 13 per cent, or about $95 in July especially those who live in Sydney.  Prices will continue to escalate over the next five years, increasing by 27.7 per cent or about $203 for the average household using 200 kl of water, plus inflation costs.

The enormous price rise will fund the desalination plant being built at Kurnell, as well as major recycling projects around Sydney and other efficiency measures.  Climate change and population growth had created the need for price reform, Sydney Water managing director Dr. Kerry Schott said.  “The new world is upon us and it’s not particularly pleasant.”

The Independent Pricing and Regulatory Tribunal recommended the increase, which was below that requested by Sydney Water.  The community will be consulted before a final decision is announced.

Dr. Schott stated, rebates for low-income households and people experiencing hardship would be beefed up and she was “absolutely convinced” that cost would be due to the building of the desalination plant.  Opposition Leader Barry O’Farrell said the massive price increase would “rub salt into the wounds” of working families who wanted more to be done about water recycling.  “Less than 10 per cent of this increase is about investing more in water recycling,” Mr. O’Farrell said.  Forty five percent of the increase is due to Labor’s obsession with the desalination plant and 40 per cent is due to the “government ripping dividends out of Sydney Water which prevented them from investing in new systems.”

We believe the preferred cheaper alternative is to harvest the rain water before it reaches the ocean.