ERA releases final report into country water pricing

21/7/06 The Economic Regulation Authority (ERA) has provided the final report from its Inquiry on Country Water and Wastewater Pricing.

21/7/06
The Economic Regulation Authority (ERA) has provided the final report from its Inquiry on Country Water and Wastewater Pricing.
The purpose of the inquiry was to inform the State Government's decisions on the level and structure of country water and wastewater prices and to recommend a system to set prices for the Water Corporation.
Treasurer Eric Ripper today congratulated the ERA on a well-conducted inquiry process and said that no decisions on the report had yet been made.
"The report's findings and the views of regional Western Australians will now be considered as part of the 2007-08 Budget," Mr Ripper said.
The ERA's inquiry process included significant consultation with public forums held in Albany, Geraldton, Kalgoorlie, Mandurah, Northam and videoconferences involving Karratha, Newman and Port Hedland.
The report's findings included:

  • the need for a careful balance between reflecting water costs and scarcity on the one hand and social considerations on the other;
  • more cost-reflective prices for consumption above the average level of water consumption, while retaining uniform prices up to average consumption levels;
  • a simpler pricing system, with fewer levels;
  • the use of price caps for groups of customers facing the highest costs of water supply; and
  • a long transition period of seven years for the phasing-in of a more cost-reflective pricing regime.
Mr Ripper called for a mature debate on the findings, saying water issues in a drying climate deserved sensible and well-informed discussion.
"The Government recognises the importance of water pricing and its role in the preservation and conservation of our most precious resource," he said.
"It is essential that our water resources be managed correctly to ensure the future needs of Western Australians can be met in a sustainable way."
The Treasurer said the Carpenter Government's commitment to regional WA was underlined by the fact that it provided a $260million a year subsidy for regional water supplies.
He said the Government was also undertaking a massive investment in water infrastructure in regional WA and had budgeted to spend $233million alone in 2006-07.
Projects to be funded in 2006-07 included:
  • $3.9million to upgrade the town water supply in Wyndham;
  • $2.6million to expand the effluent reuse scheme in Broome;
  • $1.9million to increase the borefield capacity in Broome;
  • $7.9million towards upgrading the Port Hedland water distribution system;
  • $4.4million for the Coral Bay water supply;
  • $4million for Infill Sewerage Program works in Geraldton;
  • $8.5million to upgrade the water supply in the township of Nilgen;
  • $28.8million for a new 400-ML water storage reservoir in Kalgoorlie;
  • $4.8million to upgrade a pump station in Southern Cross (on the Mundaring-Kalgoorlie pipeline);
  • $3.8million to connect Yarloop to the Integrated Water Supply System;
  • $3.6million on Collie River salinity recovery;
  • $4million on flood protection in Busselton;
  • $6.9million to replace a 25-ML water tank in Albany (at Mt Clarence); and
  • $6.9million for Infill Sewerage Program works in Little Grove (Albany).
Copies of the ERA report are available at http://www.era.wa.gov.au
Treasurer's office: (08) 9222 8788