Economic headwinds put pressure on water and wastewater prices
"Icon Water has published their response to the Independent Competition and Regulatory Commission's draft decision for water and wastewater prices for the period 1 July 2023 to 30 June 2028. The Icon Water response includes an updated price proposal, which sets out our forecast costs and customer prices for the next five years."
The updated proposal will result in the combined water and wastewater bill of a typical residential customer using 200kL of water a year increasing by 6.5% per annum, or $1.67 per week.
The Icon Water proposal has been informed by and refined during extensive consultation with the ACT community. In 2021, Icon Water launched Let’s Talk Water and Wastewater, its most comprehensive customer engagement program to date, which has so far involved over 17,500 Canberrans. Today's submission reflects the priorities outlined by that consultation for water security, levels of service, tariffs and sustainability.
"Our customers told us that water security is the top priority, and they expect us to plan for the future. This includes investing in water security and exploring alternative water sources. In the next five years we will be progressing investigations into Canberra's next water source, to ensure our region's water security and improve climate resilience,” Icon Water Managing Director, Ray Hezkial said.
“We acknowledge the challenging environment, and we are doing everything we can to keep prices as low as possible.
“Higher inflation and other operational cost pressures continue to impact prices and are driving a significant portion of the increase in water and wastewater prices.
“In addition to responding to major factors influencing our operating environment, we must work proactively to plan for our ageing infrastructure, the challenges of climate change, a growing ACT population, and changing government policy.
“Over the next five years, Canberra has a critical window to upgrade wastewater facilities largely built in the 1960s and 1970s. Icon Water has been progressively planning for essential upgrades to these core elements and other components of the city’s network and treatment systems.
“The Icon Water submission proposes a sensible, rigorously assessed investment program that focuses on renewing and upgrading critical infrastructure to ensure continued quality services for our community whilst laying a sustainable platform for future generations.
“Our proposed projects will also help increase our resilience as a community to increasing climate volatility and protect our environment.
“If we delay investment now it will reduce prices slightly over the next five years, but it will be more costly in the long run, and it means future generations will have to pay higher prices.
“Icon Water acknowledges the financial pressures affecting Canberrans following recent increases in the cost of living and that more of our customers may need extra assistance manging their bills. We have a range of support options for our customers and encourage any customer experiencing difficulty paying their bills to reach out to Icon Water.
“We need to make responsible investments so future generations are not left to pay – either through high bills, environmental damage or poor quality and unreliable services,” Ray Hezkial said.
Statement ends
The Independent Competition and Regulatory Commission will now review submissions before setting water and wastewater prices that will apply from 1 July 2023. More information on the review can be found on the Commission’s website at icrc.act.gov.au/water-and-sewerage/regulated-water-and-sewerage-services-prices-202328
An overview of our submission, along with more detailed supporting information, is available at www.iconwater.com.au/priceproposal. You can also learn more about our Let’s Talk Water and Wastewater engagement results here.
For further information, please call Icon Water’s faults and emergencies line on 02 6248 3111. For updates, please go to iconwater.com.au/mediareleases or twitter.com/iconwater.