New water efficiency price model halves the fixed charge increase

• Higher water prices for Western Australia's worst water guzzlers to drive water efficiency
• Increase in representative household water fees has been reduced from the planned 6 per cent to 5.5 per cent
• New water pricing model halves the forecast fixed service charge increase to help households control their water bills
• $200 million in savings achieved by improving water efficiency, managing the need for new water sources 

The McGowan Labor Government has introduced a water efficiency pricing model which will protect the State's most precious resource for the long term. 

The changes will deliver lower than expected water fees for everyday Western Australians, halving the forecast fixed water service charge increase from six per cent to three per cent.

Under the pricing model set by the previous Liberal National Government, water charges for the representative household were due to increase by six per cent in 2018-19.  Instead the McGowan Government will only apply an increase of 5.5 per cent - less than anticipated.

A large component of households' water bills is the fixed service charge, which does not reflect the amount of water a household uses. By halving the fixed service charge increase, households with lower water usage will benefit.

To apply this reduction for the majority of Western Australians, WA's worst water guzzlers will receive an average increase to their water bills of about 16 per cent for metropolitan customers and about 10 per cent for regional customers.

The worst water guzzlers in Perth and country north areas use more than 500KL, and those in country south areas use more than 300KL. In total, WA's worst water guzzlers make up less than seven per cent of Perth households but use 17 per cent of Perth's residential water use.

The representative household uses 240KL of water per annum, which equates to 1,041 wheelie bins full of water. 

The McGowan Government will save $200 million by managing the need for new water sources, through promoting water efficiency and using existing water infrastructure more effectively.

Comments attributed to Water Minister Dave Kelly:

"The McGowan Government's new water efficiency pricing model reduces the impact on everyday Western Australians by halving the expected increase to the fixed water service charge.

"The model incentivises the State's worst water guzzlers to be more waterwise, which is important as climate change continues to severely impact our rainfall levels.

"I'm pleased that we have found a measure that benefits water efficient households and the majority of WA households, but in particular eases pressures on lower-income households.

"Encouraging WA's worst water guzzlers to be more waterwise is part of our ongoing water efficiency program, designed to put off the need for another climate-independent water source which would be debt-funded and paid for by all taxpayers in the long run. 

"The Water Corporation will write to households who used more than 500KL last year prior to the implementation of these changes on July 1, 2018. This will give those impacted households the opportunity to moderate their water usage."

Minister's office - 6552 6100