Water
Metro Pricing

Prices for Hunter Water Corporation from 1 July 2020

Status
Consultation
Start Date
Jul 2019
End Date
Jun 2020
7
Days left for submissions
Deadline: 9 Apr 2020
Have your say
SEEKING YOUR FEEDBACK ON DRAFT DECISIONS

We are currently reviewing the prices Hunter Water can charge its customers for water, wastewater and stormwater services from 1 July 2020.   We have released our draft decisions and will be taking submissions from all stakeholders until Thursday 9 April 2020.

You can upload a submission by completing our Have your say submisison form, or provide feedback in the boxes further below on our draft prices, discretionary programs, location-based discounts for large water users and trade waste services.

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IMPACT OF OUR DRAFT DECISIONS

We have set draft prices for Hunter Water’s water, wastewater and stormwater services. We also have set draft prices for Hunter Water’s trade waste services and prices for some of its miscellaneous services.

Under our draft decisions, bills for typical customers would increase by less than inflation over the next four years. We have set a higher water usage charge, which reflects the long-run costs of water supply.  This is offset by lower fixed water charges, and gives customers more control over their bills. 

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Use our bill calculator to work out your residential or non-residential bill under our draft prices. 

HUNTER WATER'S EXPENDITURE

We set prices to recover the efficient costs that Hunter Water would need to deliver its services over the next four years.

Hunter Water submitted its five-year expenditure proposal to us. We made some cuts to expenditure and applied an ongoing efficiency adjustment of 0.8% to expenditure to encourage Hunter Water to seek further efficiencies each year.

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 We also allowed an additional $17 million in expenditure for discretionary projects where there is evidence that customers are willing to pay.

Higher expenditure is not reflected in prices

Under our draft decision, Hunter Water’s capital expenditure allowance for the next four years is 62.6% higher than what we used to set prices from 2016-17 to 2019-20. However, this does not appear as an increase in prices at this review.

A key component in the way we set prices is the cost of capital for Hunter Water (WACC).  The WACC is currently very low, which means that the increase in capital expenditure does not result in an increase in our draft prices.  However, if the cost of capital increases in the future, there would be upwards pressure on prices. 

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NEXT STEPS

We have assessed Hunter Water’s proposal (received 1 July 2019), which set out its forecast expenditure and proposed prices to apply from 1 July 2020.

We have also sought and considered stakeholder feedback in response to an Issues Paper and at a Public Hearing held in Newcastle on 19 November 2019 (submissions and transcript are available on this website).

We have now released our Draft Report and Draft Determination. You can make a formal submission on our draft decisions here, or leave your feedback in the text boxes above.

We will consider all stakeholder submissions in response to the Draft Report, before releasing our Final Report and Determination in mid-June 2020, for new prices to apply from 1 July 2020. 

MEDIA CONTACT

For media enquiries, please contact Julie Sheather by email to media@ipart.nsw.gov.au or by phone on 0409 514 643.

Key Contact
Sheridan Rapmund
Email
02 9290 8430

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