Ballarat's water authority is pushing ahead with a significant price increase proposal despite resistance from the independent regulator upholding consumer interests.
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Central Highlands Water (CHW) is standing firm on a proposed 500 per cent increase to some new customer contributions (NCCs) included in its 2023 Water Price Review, arguing it is the result of a "principled evidenced, transparent and consultative reform process".
Under a submission to the Essential Services Commission (ESC) late last year, CHW's water and wastewater charges for new growth zones would increase from $1500 to $8000 per lot, over a five-year transition period.
A differential rate would apply to existing growth zones and infill development, to be initially charged at 43 per cent of the new growth zones' NCCs, rising to 65 per cent in year five.
The ESC's draft decision in April was to knock back the proposal, finding CHW had not provided sufficient transparency or justification.
CHW earlier this month responded to the ESC's request for more information and confirmed it was sticking by the proposed NCC increases as part of a new pricing methodology that would "manage the uncertainty surrounding future regional growth, best meet the Water Industry Regulatory Order and ESC's principles, and be consistent with customer expectations".
Some fear the NCC increase will exacerbate housing unaffordability for new home buyers and those wanting to build.
"No doubt it will apply right across CHW's region, which means disadvantaged areas further west like Beaufort and Maryboorugh ... and other small towns in the region where there has been no boom like in Ballarat, will be affected even more," one concerned resident told The Courier.
A CHW spokesperson told The Courier the annual adjustment of prices "enables recovery of sufficient revenue to cover the increase of expenses, allowing [the company] to continue to deliver the levels of water supply and quality, services and outcomes that the community expects".
"Our price submission proposes to double our investment in our customer assistance program to support customers with the proposed increases through a range of targeted support programs and individual, confidential assistance," the spokesperson said.
The ESC has until June to make a final decision, with new prices to be introduced from July 1.
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