Proposed water prices for Broken Hill and surrounds criticised by councillor, local state member - ABC News

A proposal outlining new water prices for Broken Hill residents and the surrounding area has been criticised by a city councillor and the local state MP.

Key points:

• An increase in prices each year for four years is being sought to help address ageing infrastructure 
• Broken Hill councillor and Barwon MP are calling for state government to provide assistance
• Planning, Industry and Environment department says it can't comment while the matter is still being assessed

Essential Water is proposing a 1.62 per cent increase in prices for customers each year for four years, above inflation, to help address ageing infrastructure in the area such as the Wills Street Waste Management Facility. 

In its pricing proposal submission to the state's Independent Pricing and Regulatory Tribunal (IPART), the company noted that the yearly increase, minus inflation, was in line with its own costs.

But Broken Hill City Councillor Tom Kennedy said enough money had already been sought from the community for upgrades.

"I don't know how many times they can upgrade the treatment plant and we pay for it; we've already paid for it once and now we've been told we have to pay for it again," he said.

"They [Essential Water] need to get it off the government or it needs to come from their own money."

'Higher costs isn't going to attract people to a community'

Essential Water's submission also noted that it would like to see the state government contribute as well, which it did from 2019–20 to 2021–22 at a cost of $68.4 million. 

But Barwon MP Roy Butler criticised the proposal and said he would like to see government offset the customer increase through a subsidy. 

He said price rises for water would drive people out of the city.

Barwon MP Roy Butler says higher utility costs will not attract more people to the community.(

ABC News

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"I don't know why we penalise people in Broken Hill for living in a remote community with higher costs," he said.

"If you're talking about declining population ... higher utility costs is not going to attract people to a community.

"If we're serious about growing Broken Hill and growing the population of Broken Hill, this is one of the things the government can do to make it a more attractive place to live."

Community input being sought

IPART is currently reviewing Essential Water's price proposal in Broken Hill and the surrounding areas of Menindee, Sunset Strip and Silverton.

It is accepting submissions about the proposals until October 22 with new water prices set to come in place from July next year. 

Tribunal member Deborah Cope said they're looking at all the costs proposed.

"To make sure that they're the minimum that's necessary to deliver that service that people expect," she said.

"We want to hear from people about the quality of the water they're getting now."

IPART will conduct a public hearing on the matter in March next year, after the release of a draft report on the prices.

'Many options discussed'

Essential Water says it is encouraging all interested community members to provide feedback about their proposal.

Essential Water's head of water operations, Ross Berry, said the company welcomed the release of IPART's Issues Paper on their proposed prices.

"Essential Water encourages all interested community members to read our pricing proposal and IPART’s Issues Paper and take the opportunity to provide feedback," he said.

The ABC asked whether the company had sought further government subsidy to help pay for costs and whether it could be covered entirely by that means instead of increasing prices for customers.

In a statement, Mr Berry said: 

"Many options were discussed with Treasury and we expect to continue discussions until the final determination is tabled."

The ABC sought comment from the New South Wales Water Minister, Melinda Pavey, about whether government could provide assistance in relation to the prices, while queries were passed onto the state's Department of Planning, Industry and Environment.

A spokeswoman said the department can't comment while the matter is being assessed. 

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Proposed water prices for Broken Hill and surrounds criticised by councillor, local state member - ABC News
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