The average water user in the lower Hunter should expect their water bills to increase $170 each year for the next five years, Hunter Water has revealed.
The organisation estimates a five to six per cent increase year-on-year, a significant portion of which -- roughly $90 - will go towards funding the Belmont desalination plant.
Hunter Water says the estimation is a starting point and a representative community panel has been formed to help shape the water services provided by 2025 and 2030.
The typical water and wastewater bill for the owner of a house is currently around $1340 per year.
Hunter Water managing director Darren Cleary said like other industries, interest rates were one of the contributing factors to rising cost.
The need to upgrade existing infrastructure to meet future growth and demand also had to be considered.
"We anticipate customer bills may rise between 5 to 6 per cent each year over the price period. Compared to a current typical household bill, we estimate our customers will pay around $170 more each year before inflation," Mr Cleary said.
"A significant portion of this, an estimated $90 per year, will contribute to new investments such as the Belmont desalination plant, which is a key part in securing the Lower Hunter's water supply for generations to come."
Hunter Water develops a pricing proposal to submit to the Independent Pricing and Regulatory Tribunal (IPART) every five years that reflects the efficient cost of providing our services.
The next pricing reset is July 1, 2025, and the proposal must be submitted by September.
"We're now at the stage where a 40-person representative community panel is seeking to reach a consensus and make trade-offs on a number of different topics over the coming months," Mr Cleary said.
"This includes service reliability for customers, carbon emissions reduction, water conservation and recycled water.
"These consensus recommendations have the potential to change the amount of money we spend on those investments.
"Importantly, these are indicative prices only. We will continue to engage with our customers and community and finalise our pricing proposal. We are doing everything we can to be efficient and keep our customers' bills as low as possible."
