User Pays Water Pricing
Full user pays water pricing is commencing from June 2004 for Uralla and Bundarra water users.
For the coming year 2003/2004 Council will retain a water allowance system with the allowance reduced to 275kL. All usage over 275kL will be charged at 50 cents per kilolitre. Following the June, 2004 water meter reading however, Council intends to introduce full user pays water pricing calculated in accordance with State Government requirements. This will mean a two part pricing structure will apply consisting of an access charge and a uniform usage charge. The access charge will be an amount determined by the number and size of a ratepayer's water meters. For most ratepayers (those with one 20mm water meter) the access charge will be lower than the annual water charge they pay now. The usage charge will be an amount for EVERY kilolitre used. This usage charge is likely to be higher than the 50c/kL excess charge that applies at the moment. There will be no water allowance. The current method of water pricing hides cross subsidies by low water users (such as vacant land and single person households) to high water users (such as some commercial water users and large families). The new method of water pricing will eliminate cross subsidies and is a requirement for all water supply authorities not only in New South Wales, but across Australia. More information will provided in the coming year.
Why Change?
- Cost Reflective Pricing
- Environmental Concerns
In 1994 the Council of Australian Governments (COAG) representing all spheres of government agreed to reform Australia's water industries to improve efficiency of water services and make water use ecologically sustainable. In 1996 National Competition Policy was introduced to improve efficiency of government businesses including water supplies. In 1996 the NSW Independent Pricing and Regulatory Tribunal recommended user pays pricing be adopted by Councils to meet the above commitments. Since this time Council has been gradually reducing the annual water allowance to move towards user pays. In 2000 the Department of Local Government urged Council to move to full user pays. In 2003 the Department of Local Government has advised Council that implementation of user pays by 1/7/2004 is a pre-requisite for all of their approvals such as special rating variations and water and sewerage grants.
Contact details
Corporate Services
02 6778 4606 (ph)
02 6778 5073 (fax)
council@uralla.nsw.gov.au
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