Water price cuts and rises

By 26 June, 2013 8

water

Andrew Barr is applauding the Independent Competition and Regulatory Commission’s revised thinking on water prices:

Today’s announcement by the Independent Competition and Regulatory Commission (ICRC) means that Canberra’s water prices will continue to compare favourably to other mainland capital cities, while not undermining the considerable efforts and gains that have been made to date in water conservation in the ACT.

The ICRC has significantly amended its methodology to that used in their draft price determination reports released over the past twelve months. Overall, the final decrease in water and sewage prices for 2013-14 results from the combination of sewerage service prices falling by 18 per cent and of water prices rising by 4.9 per cent. The ICRC also recommends these charges increase by CPI in the 2014-15 period.

Every cent of profit that ACTEW makes is returned to the community, and the Government believes the community should receive adequate compensation (in the form of returns on equity) for owning ACTEW. But we acknowledge that providing a return should not put undue risk on the financial viability of ACTEW.


UPDATE: The Liberals’ Brendan Smyth has expressed displeasure:

Shadow Treasurer, Brendan Smyth, has today expressed his disappointment that ACT tax payers are being forced to pay more for water, purely to keep ACTEW from becoming insolvent.

“It is completely unacceptable that water prices in the ACT are increasing by 5 per cent for this reason,” Mr Smyth said today.

“ACTEW is running a monopoly on one of the most basic services in this Territory, and there is absolutely no reason that they should be overcharging Canberrans to keep afloat.

“Today’s report has confirmed that if the ICRC passed on its initial recommendation that water and sewerage prices should drop by an average of $230 a year, ACTEW would be unable to pay dividends to the Government in the foreseeable future.

Please login to post your comments
8 Responses to Water price cuts and rises
#1
Chop713:50 pm, 26 Jun 13

Andrew,

Sorry to call you bull$hit on this statement
“Every cent of profit that ACTEW makes is returned to the community”

….after high executive wages (that can’t even be reported correctly), losses on other businesses (Transact, Grapevine, Ecowise, Ecowise VIC etc), advertising on bullshit media campaigns when they have a monopoly and funding of “charity” organizations … & a $300k+ staff party

… only then does the profit make its way back into the community.

#2
funbutalsoserious5:20 pm, 26 Jun 13

I can’t believe this ‘independent’ board.

+1 for Chop71

#3
wildturkeycanoe7:10 pm, 26 Jun 13

So, if increased water prices aren’t paying for the Cotter Dam expansion, what is?

#4
miz8:06 am, 27 Jun 13

Once again ACT Govt supports market economics, but only if it goes their way. Consumers screwed again.

#5
Tenpoints11:30 am, 27 Jun 13

Do you think it might be that $400m dam they just finished?

#6
Tenpoints11:34 am, 27 Jun 13

I mean, what WTC said, derp.

#7
davo10112:20 pm, 28 Jun 13

miz said :

Once again ACT Govt supports market economics, but only if it goes their way.

Water and sewerage has never been about market economics. That’s why we have a body whose job it is to calculate, to a fraction of a percentage point, exactly how much money ACTEW Water is allowed to make. If it was based on market economics they’d be charging you just below what the cheapest competitor would be charging, in this case that’d be something like $30~$40 a kilolitre.

In light of this it does beg the question as to why we need a million dollar waste of carbon to run the outfit…..

#8
SheepGroper2:09 pm, 28 Jun 13

wildturkeycanoe said :

So, if increased water prices aren’t paying for the Cotter Dam expansion, what is?

The ACTEW price increases several years ago that were supposed to be paying for the dam, perhaps.

Advertisement
GET PREMIUM MEMBERSHIP

Halloween in Australia?

View Results

Loading ... Loading ...

IMAGES OF CANBERRA

Advertisement
Sponsors
RiotACT Proudly Supports
Copyright © 2014 Riot ACT Holdings Pty Ltd. All rights reserved.