Melbourne water costs rise

Published: November 11, 2008 - 02:38 PM

Water Bills to Double

Melbourne’s water bills are expected to double as a result of drought and infrastructure work, rising by up to $140 a year over the next five years.

The average annual water bill of about $580 today is expected to be over $1000 a year for water by 2012.

Three of Melbourne’s biggest water retailers - Yarra Valley Water, South East Water and City West Water - have reported that their prices may rise by up to 97%, in plans submitted to the Essential Services Commission.

Water Minister Tim Holding said the average householder would pay between $1.30 and $1.45 extra a week for water from July 1 next year.

The rise will help pay for water infrastructure projects worth $5 billion which include a desalination plant at Wonthaggi and the north-south pipeline.

The government claim they have been upfront about the increases, with Mr Holding stating “we've said you can't have a record investment in vitally important water infrastructure projects without paying for it."

While water users will have to pay more, the government is also contributing, Mr Holding said.

However Opposition Leader Ted Baillieu said the Government was forcing the Victorian people to pay for a flawed water policy.

"After nine years of Government and six years of water restrictions, Labor will slug Melbourne families with huge hikes in water bills to catch up on its neglect of Victoria's water infrastructure," he said.

Drought will also be a contributing factor in the rising costs, with this summer expected to be hot and dry. Weather bureau senior climatologist Dr Andrew Watkins predicted higher-than-average temperatures for Melbourne and southern parts of the Murray-Darling Basin until January.

Melbourne’s rainfall in September and October, of just 26mm, was the driest on record, Dr Watkins said.
"The previous driest was 35mm and the long-term average is about 134mm."

Dr Wendy Craik, CEO of the Murray-Darling Basin Commission, has cautioned that river flows are heading for record lows and "there's no real relief in sight," she said.

This unavoidable extra pressure on household budgets by rising water prices means that savings need to be made where they can be, such as in gas and electricity prices. With water prices about to rise, there is a need now unlike ever before to focus on the reduction of other household utility bills, order to make ends meet. ShopAround.com.au offers a valuable service of comparing gas prices and comparing electricity companies free of charge. By comparing prices and providers such as AGL and Origin, consumers are able to make informed decisions about their utilities, and potentially save hundreds during these tough times.

« Back to article list