Coliban Water managing director Damian Wells said the decision to incrementally introduce price increases, approved by the Essential Services Commission, was made after an extensive consultation period with customers and stakeholders.
“We used this feedback in our submission to the ESC and we’re confident we have struck a balance that’s fair for customers today and helps us prepare for the future,” Mr Wells said.
“Customers will see a lower price increase (above inflation) in the first year, than in subsequent years. We hope this will reduce the burden on customers, where possible, while inflation remains high.
“For the average household, this results in a bill increase of approximately $2.11 per week, which includes inflation.”
Mr Wells said Coliban Water knew that some customers who were impacted by the floods last year were far from living back to normal.
“We have approximately $180,000 available in additional support for these customers. This will be automatically applied to bills for property owners who received the $600 flood relief payment from Coliban Water last year,” he said.
Coliban Water has consistently heard from customers that being able to deliver reliable services in the face of climate change, ageing assets and population growth is key.
Mr Wells said customers had also highlighted the importance of protecting vulnerable members of the community.
“In an environment of high interest rates, high inflation and a high cost of living, we want to ensure that any customer experiencing vulnerability will be supported,” he said.
“Our Coliban Assist program is the cornerstone of our customer support function, and during the new price submission period 2023-2028, we will double our financial support for this program to $570,000 per year.
“As we embark on this new five-year period, our new prices will ensure the ongoing delivery of our core business. This is to provide safe drinking water, recycled water, rural water and sewage services for public health and the environment so that our communities can sustain themselves.
“Our region is at a critical point in its water supply and demand.
“We continue to navigate a rapidly changing environment, whilst planning for the future. As we enter a period of growth, significant intergenerational investment is required. The modest increase to our fees and charges for the 2023-24 financial year will help us meet these challenges.
“Like most of our infrastructure, our water reclamation plants were built to support regional cities and towns that were much smaller. We have significant upgrades planned for both the Bendigo and Castlemaine water reclamation plants as part of our Big Water Build.”
Mr Wells said that as a 100 per cent customer-funded organisation, it was important customers understood how Coliban Water was putting their bills to work.
“Of every $100, about $45 is spent on water and sewer services. This relates to the 16 water treatment and 14 water reclamation plants that we operate,” he said.
“We’re embarking on our Big Water Build capital program, which is a five-year program of time-critical infrastructure upgrades and renewals to underpin our region’s prosperity and help us address the challenges we face.
“Almost $30 is spent on maintaining our ‘hidden network’ of water and sewer mains, while the remainder is split between environmental protection, maintenance of our three major reservoirs near Kyneton, customer service functions and corporate costs associated with running an office.”
For rural customers, prices will increase by less than inflation. While there will be continued investment in water security and service improvements for rural customers, the majority of the Big Water Build is focused on improving urban services.
“We’re also making some changes to the way we manage trade waste, to better represent our business customers with trade waste agreements in place, and to help us better protect our assets,” Mr Wells said.
This means the introduction of a new ‘medium’ trade waste category, in addition to minor and major categories. Customers in the medium category will receive notification of this change, which may include wastewater quality monitoring.
Mr Wells said non-compliance fees for trade waste customers were also being introduced, for those who were not meeting their obligations set out in trade waste agreements.
There is also a new approach to developer charges after extensive engagement with stakeholders around these changes.
The ESC is a water industry regulator which reviews the price submission every five years to ensure pricing, service levels and works programs are justified and costs and charges are fair.
Full details on the new 2023-24 fees and charges will be available from Monday at coliban.com.au
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