Water and sewer prices 2008-09 FAQ
Why have water prices increased this year?
Water prices had to increase for 2008-09 to recover costs associated with projects to secure the region’s water supply. Water supply is a whole-of-community concern and it is as a community we bear the cost of sustaining this precious resource. These projects include:
- construction of an enlarged Cotter Dam from its current capacity of 4 gigalitres (GL) to 78 GL
- constructing pumping capacity for transfer from the Murrumbidgee River to the Googong Reservoir - Murrumbidgee to Googong project. This project could also be used to transfer additional flows released from Tantangara Dam if such flows become available.
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Who determines these new charges?
ACTEW's charges are regulated by the Independent Competition and Regulatory Commission (ICRC). The ICRC set prices for water and wastewater services in its five-year price direction for water and wastewater services in April 2008. These prices include recovery of the Water Abstraction Charge and Utilities Network Facilities Tax, which are set by the ACT Government.
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Who do I complain to about these new charges?
The public had the opportunity to raise objections or have input to the pricing process in December 2007 and January and February 2008 when the Regulator (ICRC) called for submissions on the draft price direction and held a public hearing. The ICRC also called for comments from interested parties on its discussion and information papers between August 2006 and October 2007.
You can register any complaint through ActewAGL's contact centre staff on 13 14 93 or submit your concerns online.
You can review our complaints handling procedure online.
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What are the prices for water in 2008-09?
Prices for 'standard' water customer
View all water and sewerage tariffs and charges.
| WATER |
2008-09 |
| |
Fixed charge (per annum) |
$85 |
Usage Charge (per kL) |
|
For the first 0.548 kilolitres supplied on average per day of the billing period |
$1.85 |
Plus, for all water supplied in excess of 0.548 kilolitres on average per day of the billing period |
$3.70 |
| WATER |
2007-08 |
| |
Fixed charge (per annum) |
$75 |
Usage Charge (per kL) |
|
Consumption up to 100kL |
$0.775 (plus $0.64 for ACT Government WAC and UNFT) |
Consumption in excess of 100kL but not greater than 300kL |
$1.67 (plus $0.64 for ACT Government WAC and UNFT) |
Consumption in excess of 300kL |
$2.57 (plus $0.64 for ACT Government WAC and UNFT) |
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What are the prices for wastewater services in 2008-09
Prices for Class 1, 2, and 3 parcels of land
View all water and sewerage tariffs and charges.
| |
2007-08 |
2008-09 |
| |
Supply charge (pa) |
$413.76 (plus $18.00 recovery of ACT Government UNFT) |
$443.82 |
Prices for Class 5 parcels of land
View all water and sewerage tariffs and charges.
| |
2007-08 |
2008-09 |
| |
Supply charge (pa) |
$413.76 (plus $18.00 recovery of ACT Government UNFT) |
$443.82 |
Fixtures charge (pa per fixture in excess of 2) |
$404.64 (plus $18.00 recovery of ACT Government UNFT) |
$434.04 |
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What is daily pricing?
Also see separate water bill insert on daily pricing.
The ICRC approved the move to daily pricing from 1 July 2008 in its five-year price direction of April 2008.
Before 1 July 2008, prices steps were applied based on cumulative 'year-to-date' water consumption. For example, in 2007–08 a standard customer using 100kL per quarter would have paid $1.415/kL (plus WAC and UNFT) in quarter 1, $2.31/kL in quarters 2 and 3, and $3.21/kL in quarter 4. Prices would progressively increase throughout the year.
After 1 July 2008, prices are calculated based on average daily price steps. For example, in 2008–09 a standard customer using 100kL per quarter will pay $1.85/kL for around half their usage each quarter (and $3.70/kL for the remainder). This ensures that water bills track more closely with water usage.
The following table provides a stylised example of water consumption charges in 2007–08 and 2008–09 for a customer billed on 30 September, 31 December, 31 March and 30 June that uses 100kL in each billing period.
Under daily pricing, water usage is divided by the number of days in the billing period. Consumers that use less than 0.548kL per day on average will pay only the first step price of $1.85/kL. Any average daily usage in excess of 0.548kL per day will be charged at the second step price of $3.70/kL.
How will daily pricing be applied on my first bill in 2008–09?
Under the daily pricing arrangements agreed by the Independent Competition and Regulatory Commission (ICRC) all water billed after 1 July 2008 will be billed on a daily basis. Water billed after 1 July 2008, but deemed to have been consumed prior to 1 July 2008, will attract the 2007–08 water abstraction charge and recovery of utilities network facilities tax in addition to the following volumetric charge ('average daily' versions of the 2007-08 annual price steps):
- for the first 0.274 kilolitres supplied on average per day of the billing period—$0.775/kL
plus
- for all water supplied between 0.274 kilolitres on average per day and 0.822 kilolitres on average per day of the billing period—$1.67/kL
plus
- for all water supplied in excess of 0.822 kilolitres on average per day of the billing period—$2.57/kL
How much of my bill is due to the ACT Government WAC and UNFT?
Prior to 1 July 2008, the ACT Government Water Abstraction Charge (WAC) and Utilities Network Facilities Tax (UNFT) were separately itemised on water bills. For water consumed after 1 July 2008, these charges will be incorporated in the total price and will not be shown on water bills.
Page 56 of the ICRC final report of June 2008 contains a discussion of the WAC and UNFT amounts to be recovered by ACTEW's prices. Around $35 million has been forecast in ACTEW's costs for 2008–09 ($30 million for WAC and $5 million for UNFT).
Because WAC and UNFT have not been separately identified in the prices set by the ICRC, ACTEW cannot say exactly how much of your water bill is due to those charges. As a guide, the water abstraction charge paid by ACTEW is 51c/kL for all water that it takes from dams and rivers in 2008–09.
If you have further questions concerning WAC policy, its purpose and use, and its level, please call the Territory through the Director, Economics Branch, ACT Treasury, on 6207 0337. For information and enquiries on UNFT, please refer to the ACT Revenue Office's website.
ActewAGL and ACTEW are not in a position to address such questions.
What is the total percentage increase on my water and sewerage account?
Residential
As a result of daily pricing, the increase in your annual water bill in 2008–09 will vary depending upon the pattern of your water usage over the year. For a residential customer using 62.5kL in each quarter (250kL pa), the combined impact of changes to prices for water and wastewater services in 2008–09 would be an increase of around 9 per cent in the annual bill (around $1.70 per week). Taking inflation into account, this equates to an increase of around 6.5 per cent based on a Consumer Price Index (CPI) increase of 2.34 per cent for 2007.
Larger consumers will face more significant price increases.
The following table provides some examples.
Combined residential water and wastewater bill impacts
Usage profile: equal usage in each quarter
Current
consumption
kL |
2007-08 combined bill $ |
2008-09 combined bill $ (seasonal usage) |
Percentage increase in combined bill |
Dollar increase in combined bill |
Increase in combined bill after inflation |
0 |
506.76 |
528.82 |
4.4% |
22.06 |
2.0% |
50 |
577.51 |
621.32 |
7.6% |
43.81 |
5.1% |
100 |
648.26 |
713.82 |
10.1% |
65.56 |
7.6% |
150 |
763.76 |
806.32 |
5.6% |
42.56 |
3.2% |
200 |
879.26 |
898.82 |
2.2% |
19.56 |
-0.1% |
250 |
994.76 |
1,083.82 |
9.0% |
89.06 |
6.5% |
300 |
1,110.26 |
1,268.82 |
14.3% |
158.56 |
11.7% |
500 |
1,752.26 |
2,008.82 |
14.6% |
256.56 |
12.0% |
1,000 |
3,357.26 |
3,858.82 |
14.9% |
501.56 |
12.3% |
5,000 |
16,197.26 |
18,658.82 |
15.2% |
2,461.56 |
12.6% |
10,000 |
32,247.26 |
37,158.82 |
15.2% |
4,911.56 |
12.6% |
For many customers, usage will vary over the year. The following impacts describe a customer who’s usage pattern across the four quarters is one sixth, one third, one third, one sixth. The combined impact of changes to prices for water and wastewater services in 2008–09 would be an increase of around 12 per cent in the annual bill (around $2.30 per week) for an indicative residential customer using 250 kilolitres per annum. Taking inflation into account, this equates to an increase of around 9.5 per cent based on a Consumer Price Index (CPI) increase of 2.34 per cent for 2007.
Larger consumers will face more significant price increases.
The following table provides some examples.
Combined residential water and wastewater bill impacts
Usage profile: 1/6 – 1/3 – 1/3 – 1/6
Current
consumption
kL |
2007-08 combined bill $ |
2008-09 combined bill $ (seasonal usage) |
Percentage increase in combined bill |
Dollar increase in combined bill |
Increase in combined bill after inflation |
0 |
506.76 |
528.82 |
4.4% |
22.06 |
2.0% |
50 |
577.51 |
621.32 |
7.6% |
43.81 |
5.1% |
100 |
648.26 |
713.82 |
10.1% |
65.56 |
7.6% |
150 |
763.76 |
806.32 |
5.6% |
42.56 |
3.2% |
200 |
879.26 |
960.49 |
9.2% |
81.23 |
6.7% |
250 |
994.76 |
1,114.65 |
12.1% |
119.89 |
9.5% |
300 |
1,110.26 |
1,268.82 |
14.3% |
158.56 |
11.7% |
500 |
1,752.26 |
2,008.82 |
14.6% |
256.56 |
12.0% |
1,000 |
3,357.26 |
3,858.82 |
14.9% |
501.56 |
12.3% |
5,000 |
16,197.26 |
18,658.82 |
15.2% |
2,461.56 |
12.6% |
10,000 |
32,247.26 |
37,158.82 |
15.2% |
4,911.56 |
12.6% |
Commercial
The impact on commercial customers will vary from a 2 per cent increase (for customers using 50kL per quarter) to a 15 per cent increase (for customers with very high water consumption and no billable fixtures). The following table provides some examples.
Combined commercial water and wastewater bill impacts
Usage profile: equal usage in each quarter
Current
consumption
kL |
Number
of
Fixtures |
2007-08 combined bill $ |
2008-09 combined bill $ |
Percentage increase in combined bill |
Increase in combined bill after inflation |
1,000 |
10 |
7,583.66 |
8,199.22 |
8.1% |
5.6% |
1,000 |
50 |
24,489.26 |
25,560.82 |
4.4% |
2.0% |
1,000 |
100 |
45,621.26 |
47,262.82 |
3.6% |
1.2% |
5,000 |
10 |
20,423.66 |
22,999.22 |
12.6% |
10.0% |
5,000 |
50 |
37,329.26 |
40,360.82 |
8.1% |
5.6% |
5,000 |
100 |
58,461.26 |
62,062.82 |
6.2% |
3.7% |
10,000 |
10 |
36,473.66 |
41,499.22 |
13.8% |
11.2% |
10,000 |
50 |
53,379.26 |
58,860.82 |
10.3% |
7.7% |
10,000 |
100 |
74,511.26 |
80,562.82 |
8.1% |
5.6% |
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How has this increase been calculated?
The ICRC determined a five-year price path in April 2008 to allow ACTEW to recover the efficient costs of operating its water and wastewater businesses. These costs include investments in projects to secure Canberra's water supply as listed above.
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What input does the customer have in determining ACTEW Corporation charges?
The public had the opportunity to raise objections or have input to the pricing process in December 2007 and January and February 2008 when the Regulator (ICRC) called for submissions on the Draft Price Direction and held a public hearing. The ICRC also called for comments from interested parties on its discussion and information papers between August 2006 and October 2007.
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Will my pension and/or health care rebate increase accordingly?
ActewAGL administers the rebate scheme on behalf of the ACT Government and provides advice to the ACT Government when charges are varied. Pension rebates are adjusted in line with changes in the supply charge for the relevant service.
In 2008–09, the water supply charge is $85 per annum. The water pension rebate will increase by around 13 per cent. The sewerage pension rebate will increase in line with the increase in the sewerage supply charge, which is increasing by around 3 per cent.
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Where can I view all charges and when?
ACTEW Corporation's regulated charges for water and sewerage in 2008-09 were published in The Canberra Times on 28 June 2008.
The schedule of charges for water and sewer main connections is available on the ActewAGL website. Copies of the brochures will be available at ActewAGL shopfront offices soon after 1 July 2008.
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Will the price of miscellaneous charges increase?
Under the ICRC's April 2008 water and wastewater price direction, miscellaneous fees and charges have increased in line with CPI rounded to the nearest dollar.
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