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Regulator approves further price increase for Barwon Water
21 June 2012
Victoria’s economic regulator, the Essential Services Commission, has made its final determination in response to Barwon Water’s application for a price adjustment to reflect the costs of the Melbourne to Geelong Pipeline (MGP).
The Commission’s final decision authorises a further maximum three per cent increase to Barwon Water’s water service prices in 2012-13, on top of the already approved seven per cent. Both are maximum price adjustments and Barwon Water can choose to charge lower prices if it sees fit.
The Commission has, however, stipulated that the further three per cent increase would take effect only after Barwon Water has satisfied the Commission that the pipeline was in service.
Barwon Water had applied for an increase of additional 3.5 per cent for 2012-13 across water, sewerage and trade waste prices.
Under the Commission’s final decision, there will be no additional increase to the already approved sewerage and trade waste prices.
If the MGP is in service from 1 July 2012, the annual water and sewerage bill for households consuming around 165 kilolitres of water per year would be around $1077 in 2012-13, or about $15 above the previously scheduled increase.
The authorised additional cost to consumers of $15 is less than that of Barwon Water’s proposal, which would have seen an additional increase of around $35.