Delivering greater value: new prices approved

The Essential Services Commission — the independent economic regulator of the water industry  today announced its approval of Barwon Water’s prices for the next 5 years, ensuring a reliable, secure and affordable water future for our region. The new prices and outcomes were shaped by an extensive 18-month community engagement program.

 

No bill increases next year

The commission approved our proposal for no bill increases in the 2018/2019 financial year (excluding inflation). Small increases in years 2–5 will resulting in an overall average residential bill increase of $13 by 2022/2023 (based on average annual consumption of 160 kL).

We will continue to invest in areas our customers said were important to them: helping more people in hardship, helping our customers save water, and reducing impacts on the environment through use of recycled water and renewable energy.

Over the previous 5-year pricing period our prices had reduced 7.6% (excluding inflation). By the end of the new pricing period, the average bill for a residential owner/occupier will be $163 less than in 2013 ($1,201, down to $1,038, based on an average annual consumption of 160 kL).

 

Better value for customers

The commission rated our submission as ‘advanced’, noting it will deliver better value for customers. It acknowledged our strong commitment to controlling costs, delivering one of the highest efficiency targets in the water sector, expected to save $26 million over the 5-year pricing period.

We already have one of the lowest bills in Australia for a water company of our size. Nationally, we are in the lowest 10% for major water corporation bills, and this next price period should see this continue.

 

Greater control over customer bills

The cornerstone of our price submission is an affordable and more equitable pricing structure.

We’re giving customers greater control over their bills by reducing the fixed component and increasing the variable component of water charges. This means that, more than ever, customers can save money by using less water.

In 5 years’ time all customers will pay the same price for the water they use with greater incentives and support to save water.

 

More highlights

  • Tripling our support for customers in financial hardship, with an extra $500,000 each year.
  • $15.4 million for renewable energy projects, based on community feedback showing strong support for climate change action.
  • An extra $500,000 annually for water efficiency programs.
  • A strong capital works program, with $328.6 million allocated for new and replacement infrastructure.

 

More information

  Media release issued Tuesday 19 June 2018: Delivering greater value for customers - Barwon Water’s new prices approved

  Essential Services Commission: Water Price Review 2018


  Latest news blog