The majority of people who responded to a survey on IPART’s draft decision on Central Coast Council’s water rate rise said they couldn’t afford it.
Council wants to raise water rates by 34 per cent.
IPART countered with a draft proposal of a 19 per cent increase in the first year then 4 per cent plus inflation increases each year for the following three years.
IPART said its draft decisions would lead to typical household bills rising on average by $200 in the first year then by $49 plus inflation in each of the following three years.
Under the draft decisions, fixed water service charges would increase more than usage changes.
IPART asked residents to respond to the draft proposal in April before its final decision this month.
Eighty-three people filled in the survey and 61 said they could not afford the proposed water rate rises.
Of these, 27 said they would seek hardship provisions; 19 said they would not be able to pay on time and would have trouble with the budget; 15 said they were not sure how they would pay and 12 said they could pay but it would mean changes to the budget and they would have to spend less on other things.
Twelve respondents preferred the full price increase in the first year while 25 wanted no increase at all.
Another five wanted prices to increase with inflation only; two suggested waiting two years before giving Council any increase. Four offered alternative paths, such as 4 per cent per year for three years then the balance in the final year.
Ten provided comments that were not specific to the question, including that it was not acceptable to bail out the council when some managers who were there when the Council announced its financial crisis in 2020 are still there, and some accused the Council of “bleeding the community dry”.
Currently Wyong customers pay slightly less than Gosford customers, due to different wastewater pricing.
The draft decision was to accept Council’s proposal to align wastewater prices so customers in both areas pay the same.
This means the increase in wastewater prices would be higher for former Wyong Council customers than for former Gosford Council customers.
Of the 55 that agreed Gosford and Wyong customers should pay the same prices, 30 preferred this to begin from 1 July 1 this year. The rest (25) preferred prices to be aligned gradually over a few years. Nineteen survey respondents thought the two areas should continue to pay different prices.
Respondents to IPART’s survey included 23 pensioners and three business customers.
IPART also received 66 written submissions, including four from groups – Avoca Beach Community Association; Central Coast Plateau Chamber of Commerce; the Community Environment Network and the Public Interest Advocacy Centre – and a 129-page submission from Council.
Avoca Beach Community Association said its previous submission, which it provided six months ago, expressed concern at Council’s proposal to increase the fixed water supply service charge by far more than the unit of consumption usage charge.
“Yet, the draft IPART determination proposes an even greater disproportion in the relative price increases – over four years the fixed service charge is proposed to rise by an eyewatering 243 per cent compared to the charge applying today ($87 rising to $298 annually),” the Avoca submission said.
“We have no understanding of the criteria used by Council and IPART in determining what proportion of a specified revenue amount should be derived from fixed service and usage charges. But the end effect of that cost allocation framework produces a socially, environmentally and economically perverse outcome.
“Hence, we repeat our earlier proposal that IPART begin a process to redesign water pricing to better encourage water use efficiency.”
In another submission, one individual wrote;
“The Central Coast used to be a beacon of affordability in NSW, with housing, rates, and cost of living allowing for those not blessed with financial abundance a place to live.
“This is no longer the case, and those that are already struggling are going to be marginalised even more with rate rises, rental increases, and property prices all escalating out of control.
“While there are no easy solutions, this is what we pay those in power for, to come up with creative, innovative solutions that allow the best outcome for all, not just the wealthy.
“Rate rises do not fit this bill, and are the Band-Aid applied to all government shortfall situations.”
All the submissions are now up on IPART’s website for general reading.
IPART said it would publish its final decision in May and the new prices would take effect from July 1.
Merilyn Vale