Desal costs drive huge rise in water bills

Published on July 6, 2013 00:18 by Water Network Research, Official research team of The Water Network in Business

Melbourne households will see their water bills rise by as much as $220 next financial year.

The Essential Services Commission announced its final decision on metropolitan water prices on Tuesday morning, revealing water bills will increase by between $167 and $222.

The price increases will take effect from July 1 and impact customers of Melbourne Water, City West Water, South East Water and Yarra Valley Water. The commission's chairman Dr Ron Ben-David said the price increases were largely driven by the cost of Victoria's desalination plant. ‘‘Of the increase, about two-thirds to three-quarters is due to the desalination plant,'' he said. Water bills across Melbourne will increase by an average 22.4 per cent, plus inflation.

However, Dr Ben-David said the price rises over the next five years were less than the increases initially put forward by the water businesses. ‘‘This represents a significant reduction from the increases originally proposed by the businesses of between $269 and $355,'' Dr Ben-David said.

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