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Story / Pricing & Regulatory 30 Jun 2015

Sydney Water proposes lower bills in new pricing proposal

Sydney Water is proposing households will save about $100 each year, for four years from July 2016, as part of its pricing proposal released today.

Sydney Water’s proposal lodged with IPART seeks to:

  • reduce customer bills, while still delivering high quality services
  • enhance customer engagement, so we can better align our services to meet customer expectations
  • modernise regulation, so we can deliver better outcomes for customers.

Sydney Water’s Managing Director, Kevin Young, said the proposal to reduce customer bills for 2016–20 was thanks to two key factors.

“Over the last four years we’ve been able to make some significant efficiency gains as a business, without compromising the quality of service we offer our customers,” Mr Young said.

“We are also passing on savings because of the current economic climate and lower than expected interest rates.

“We understand that there are a number of things that contribute to cost of living pressures, including bills, so hopefully this proposal will help to ease the pressure for some.”

Compared with the 2015–16 average bill, residential customers will save:

  • $105 or 8.6% (for customers in single residential homes)
  • $86 or 7.9% (for customers in residential flats).

Overall, of our non-residential customers:

  • 43% will receive up to a 10% saving
  • about 50% will receive a 15–17% saving
  • about 7% will see a 35–39% saving.

“I am very proud to submit a proposal to IPART that highlights our commitment to transform Sydney Water as a customer-centred, world-leading utility that provides high quality services to customers, cost-effectively, and at the right price,” Mr Young said.

Sydney Water is also proposing to increase engagement with customers and continue to improve its understanding of customer expectations.

“We want to know what our customers truly value so that we can enhance their experience and make their lives easier or better,” Mr Young said.

“Based on customer feedback, we are proposing changes to the way we charge for water and wastewater services.

“This is just one way that we’re using customer engagement to inform our decision-making and enhance customer value.

“To truly deliver valued outcomes to our customers, we’re also proposing important changes to the way we are regulated.

“These ongoing improvements are crucial for Sydney Water to continue to improve performance and respond to future challenges.”

Sydney Water’s pricing proposal for 2016–20will now be reviewed by IPART.

The submission is available on Sydney Water’s website, and will shortly be available on IPART’s website. Members of the public are encouraged to provide feedback to IPART on the proposal.

 

You can find a fast facts sheet on what our pricing proposal means for you here 

You can find answers to all your questions about our pricing proposal for 2016-2020 here

 

 Figure 1 – Changes in Sydney Water’s bill 2016–20 (with and without inflation)

This shows in nominal terms, residential single homes customers in 2016–17 receive a $77 bill decrease compared with 2015–16 bills, after which time bills increase at the rate of inflation. It also highlights that in 2019–20 customers are $116 better-off from this proposal compared with our 2015–16 charges increased by inflation.

 

This shows in nominal terms, residential single homes customers in 2016–17 receive a $77 bill decrease compared with 2015–16 bills, after which time bills increase at the rate of inflation. It also highlights that in 2019–20 customers are $116 better-off from this proposal compared with our 2015–16 charges increased by inflation.

Author: Sydney Water Media | Sydney Water |