Peninsula residents still reeling from rates rises of up to 42 per cent which came into effect on July 1 could also face a 34 per cent hike in their water rates next year, if a Central Coast Council submission to IPART (The Independent Pricing and Regulatory Tribunal) is successful.
IPART is reviewing the maximum prices that Central Coast Council can charge for its water, wastewater, stormwater and other water-related services from July 1, 2022.
Council submitted its pricing proposal on September 10 and on September 28 IPART released its Issues Paper seeking community feedback.
IPART Chair, Carmel Donnelly, said IPART would assess whether the price changes proposed by the Council represented good value for money for customers and were affordable.
“The Council has proposed prices that would increase typical household bills by about 34 per cent in the first year, and then by inflation after that,” she said.
“The Council’s submission says the proposed price increase will ensure it could provide water services that meet its customers’ expectations now and into the future.
“This includes good quality drinking water, and reliable water supply, wastewater, stormwater and other water services.”
Council’s last proposal for water rates variation, in 2018/19, was refused.
“IPART did not find enough work had gone into the proposal to justify the prices Council was seeking,” Donnelly said.
“We found then that Council had consistently underspent in a number of areas and made suggestions on how it could improve its data analysis.”
Donnelly stressed that community feedback would form an important part of IPART’s assessment process.
“We want to make sure people are asked to pay the minimum required for safe services to be provided,” she said.
Donnelly said on average, Central Coast residents pay the lowest water rates in NSW but that would not drive IPART’s decision.
“We will be looking at what an efficient water utility should charge to provide the expected quality,” she said.
“It is very important for residents to know that IPART will be undertaking a very thorough review.
“We are especially keen to hear from residents what they expect and what is happening now with water services.
“We have already heard concerns about water quality and about Council’s management and efficiency surrounding infrastructure maintenance.
“We want to hear about any leakages or overflows and will balance the views of the community with the need for efficient services.
“Affordability will also be taken into account.
“These are tough times with uncertainty and economic difficulties surrounding COVID-19 and we are also aware of the recent movement in residential rates.
“We will look at affordability and what is a fair ask.
“Also, Council is not proposing any sort of gradual introduction for a rise and we are interested in hearing the reaction to that.”
Donnelly said the proposal would attract expert independent and in-house analysis.
Keeping the cost of water rates low was the number one concern of residents in a survey conducted for the Central Coast earlier this year.
Improving the quality of drinking water was the second most important improvement to residents.
Council is hoping to claw back about $39M plus inflation that was lost in the 2019 decision, with its water and sewerage business expecting a loss of $11M this financial year.
Director Water and Sewer, Jamie Loader, said Council’s pricing model was not financially sustainable.
“As they currently stand, our rates for water, sewerage and stormwater drainage are the lowest in NSW,” Loader said.
“If we continue along with these current prices, we will not have sufficient funds to provide the community with what they need and deserve, which is a safe, clean and reliable water supply and an effective sewer and drainage system that does not harm the environment.
“What we are proposing is returning our prices for these services similar to 2018-19 levels, with an allowance for subsequent inflation.”
Donnelly encouraged customers and the community to make submissions to the review, complete the Have Your Say survey and participate in IPART’s online public hearing on October 26.
IPART will consider all comments made through submissions, survey responses, and at the public hearing before releasing a Draft Report seeking further community feedback in early March 2022.
Central Coast Council is the only council in NSW that is also a Water Supply Authority and for which IPART sets maximum prices.
Submissions to the Issues Paper and responses to the Have Your Say survey can be made via IPART’s website and are due by November 1.
The Issues Paper, the Council’s pricing proposal, and information on how to register for the upcoming public hearing are also available on IPART’s website.
IPART will set new prices to apply from July 1, 2022.
Terry Collins and Sue Murray
The fact is they want to cover their mistakes. I am a pensioner and I am facing an increase on land rate and water rate of a 76% WAPPER. Thanks to the CENTRAL COAST AMALGAMETION. How you think I should feel!
Not Happy.
We all have regrets from the past but you can’t base a budget on past losses. Trying to claw back $34 million from ratepayers is not the answer. The tribunal made a determination that the council had not done enough to earn the raise in water rates. So move on base the budget on today’s conditions and add the future population rise and factor in Climate Change etc. The fixation of 42% rate increase and a 34% water and sewer charge is unsustainable for people on limited incomes. If you are on $517,000 it means nothing but if you are a sole parent or pensioner it means you will have to do without an essential food item. The Council got themselves into this debt ridden mess its up to Council to pull themselves out not force it on to the ratepayers. Do the job you are handsomely paid for or should we be looking for a replacement.