INTRODUCTION
From July 1, 2005, there was a change in the way costs are calculated for water use for industry, business and other non-residential users in Bunbury.
Aqwest’s water service area can be viewed on the map of the Aqwest Licence Area.
For some users, the changes have the potential to lead to significantly higher or lower water supply costs.
In the past, AQWEST has calculated water service charges largely based on the value of properties.
From July 1, 2005, water supply costs will be based on a service charge, plus the cost of water used. High water users will pay more and low water users will pay less.
The user pays system is a principle that was endorsed by the Council of Australian Governments (COAG) in 1994. It is a much fairer way to charge for services and more closely reflects the value of the resource.
The user pays system:
Places greater emphasis on charging for the amount of water used – and less on property value;
Provides greater incentives to better manage water use, and therefore gives customers greater control over costs;
Promotes water conservation; and
Is an approach used by most water authorities (and other service providers) throughout Australia.
A fair price for water
In Australia, most water businesses have changed from a charging system based largely on property value to one based on actual water consumed (a user-pays policy).
This reflects the major change in the philosophy contained in the Council of Australian Governments’ Water Reform Agenda adopted in 1994.
Hunter Water in the Newcastle area of New South Wales pioneered this policy in Australia in the 1980s and reported a fall in household water consumption of 30 per cent over previous trends. Even before the COAG decision, this experience encouraged other water authorities to adopt the policy with a view to managing demand for water.
The user-pays system gives the right economic signals to consumers about the real value of this precious resource and encourages people to make more efficient use of water.
Currently in Australia, the COAG-initiated industry reforms have led to water-pricing structures based on a tariff comprising:
A fixed charge reflecting the cost of the service provision.
A variable charge based on the volume of water purchased.
This approach is reflected in AQWEST’s new charging system for non-residential customers.
Water service invoices will display a fixed charge for the water service connection. This charge varies according to the size of the connection and water flow available.
Invoices will also show a charge for water used. The cost of water increases as the amount used increases. At the end of each 12 month period, the water use amount is re-set to zero.
Invoices are sent out approximately every four months.
Water reform
In 1994, the Council of Australian Governments (COAG) agreed to a package of water reforms that would lead to the better management of Australia's water supply. The key areas of water reform included:
all water pricing is to be based on the principles of full cost recovery and transparency of cross-subsidies;
any future new investment in irrigation schemes, or extensions to existing schemes, are to be undertaken only after appraisal indicates it is economically viable and ecologically sustainable;
State and Territory governments, through relevant agencies, are to implement comprehensive systems of water allocations or entitlements, which are to be backed by the separation of water property rights from land and include clear specification of entitlements in terms of ownership, volume, reliability, transferability and, if appropriate, quality;
the formal determination of water allocations or entitlements, including allocations for the environment as a legitimate user of water;
trading, including cross border sales, of water allocations and entitlements within the social or physical and ecological constraints of catchments;
an integrated catchment management approach to water resource management be adopted;
the separation, as far as possible, of resource management and regulatory roles of government from water service provision;
greater responsibility at the local level for the management of water resources;
greater public education about water use and consultation in the implementation of water reforms; and
appropriate research into water use efficiency technologies and related areas.
Managing water use
Water supply authorities use ‘demand management’ measures to help ensure that water is used responsibly and efficiently.
Demand management involves regulatory, policy, technical, service or commercial interaction with customers.
Examples of demand management to promote water conservation include public advertising, public education campaigns, pricing structures and the application of new technology.
AQWEST’s charter includes the promotion of efficient water use.
For further information on this topic, please refer to the water conservation page.
STRATA PROPERTIES
Charge paid by individual strata property if meter supplies strata property, otherwise Strata Company will be charged.
TABLE SHOWING CONSUMPTION CHARGES
|
Consumption step
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Rate/kL
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Up to 1000 kL
|
$0.82
|
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Over 1000 kL
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$1.21
|
All rates and charges are subject to annual budget review.