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Water rates 14% price hike

 

22nd April 2009

By Alan Lander


The cost of water to Sunshine Coast ratepayers is set to rise 14% – partly due to residents cutting back their water use.

Increases over the following two years could go even higher.

For the first time, the state government has set the price of water, forcing the Coast council to apply the increase from July 1.

The council has been slugged with a bulk-water cost increase of 21.1%, from $700 a megalitre to $848.

This will translate to a household rise to $1.35 a kilolitre, from $1.10. The average household water bill will rise from $255 to about $283 annually.

The level for higher-tier users, previously assessed at above 685 litres a day, will apply at 600, but that price increase will not come in until January 2010.

This will be the last time the council sets water charges for consumers. Next year, the state government assumes full control.

Mayor Bob Abbot said the government’s reforms had left the council with no option but to increase charges.

“We don’t like having to charge more but there’s not much we can do when the government is charging us more,” he said.

The draft recommendations were unanimously adopted by councillors at a budget meeting yesterday.

Demand for town water has fallen a whopping 25% on the Coast in the last two years, leaving the council maintaining a growing delivery system while receiving less in water revenues.

Council staff said the reduction was most noticeable in the former Noosa shire.

They said the main reason was Brisbane’s water-use education program being broadcast on the Coast, leading many residents to believe the restrictions also applied here.

“Also, the weather patterns have had an effect,” a staffer said. “It’s not just volume of rain. We have short, sharp bursts of rain then long dry periods, producing an increase in consumption.

“But with continuous rain, consumption drops.”

Statistics show Coast water usage at between 200 and 220 litres a household per day, down from 250-plus litres, with demand likely to fall even further from July.

Gold Coast consumption has dropped to 200.

Councillors said that despite handing over the water system, council would still work towards implementing discounted water-tank systems for retro-fitting to older homes, and applying stand-alone water systems in new master-planned communities such as Caloundra South.

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