WATER PRICING CHANGES A GOOD START BUT MORE WILL BE NEEDED

Friday, 30 July 2004 10:00

Total Environment Centre (TEC) Urban Campaigner Mr Leigh Martin said, "A two-tier price system is an important first step to promote water conservation. Charging highest volume users more for their water will provide a clear signal that Sydney's water is too precious to waste and will encourage more sustainable water use practices".

IPART has recommended significantly higher charges for customers who use more than 400 kilolitres each year. Average household consumption in Sydney is currently around 290 kilolitres a year.

While welcoming the recommendation for a two-tier price structure TEC has warned that the 'step point' will need to be lower to achieve sufficient water savings.

"The 400 kilolitre step point will be a useful start to introduce customers to a two-tiered system, however achieving long term sustainability will demand that this figure be reduced over time. This should be coupled with assistance to vulnerable families to reduce their water use", Mr Martin said.

TEC also welcomed recommendations to significantly reduce fixed charges in water bills.
"The high level of fixed charges in current water bills provides little incentive for customers to conserve water as even a major reduction in consumption will produce only a modest reduction in their bills. Reducing fixed charges will give customers more control over the size of their bills and reward people who make the effort to use less water", Mr Martin said.

A flaw in the recommendations is the failure to recommend a two-tier wholesale price structure so that Sydney Water would be penalised for failing to meet its water conservation targets.
 
"Present pricing arrangements provide little incentive for Sydney Water to invest in water conservation. The more water they sell the greater their profit. A wholesale step price is needed to penalise Sydney Water for any water they purchase from the Sydney Catchment in excess of their demand management targets", Mr Martin said.

TEC has also told the government that pricing reform must be coupled with other water saving measures such as effluent recycling and more rainwater tanks. A major report on achieving water sustainability in Sydney will be released by environment groups next week.
 

For further information

Contact
:
Leigh Martin - Urban Campaigner
Phone
:
61 2 9299 5599
Email
:
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WWW
:
http://www.tec.org.au/