Customers in the ACT can expect to pay an additional $72 on their water bill for the year starting July 1, following an agreement allowing Icon Water to raise its service fee more than 6 per cent.
The ACT supplier successfully pushed back against the regulatory commission's proposed increase of 4.2 per cent for water and sewerage services. This would've made the average customer pay about $50 more.
The Independent Competition and Regulatory Commission's final decision, announced on Monday, concerns services for the 2023-28 regulatory period.
Commissioner Joe Dimasi said an average residential customer will pay $1249 for their annual combined bill in 2023-24, an increase of $72 compared with now.
"Despite this increase, the combined water and sewerage services bills for residential consumers in the ACT will be around the average of comparable jurisdictions," he said.
A business with 10 toilets will see its annual bill increase by $606, a rise of 6.2 per cent.
A business with 50 toilets will see its annual bill increase by $2108, a rise of 4.42 per cent.
Icon Water pushed for the increase to cover the costs of large planned investments in sewerage treatment, including major upgrades to the Lower Molonglo Sewerage Treatment Plant.
Fyshwick sewage treatment plant is also being investigated for future expansion, in response to the ACT's rapid population growth.
It also said it was facing high levels of inflation and higher financing costs for planned investments.
The regulatory commission said Icon's increased costs had been partially offset by Canberra's population growth and the ability to spread costs across more people.
The price increase has been matched to the ACT's inflation rate of 6.2 per cent, recorded in the 12 months to March 2023.
READ ALSO: Icon Water explore treated effluent as drinking water source
The regulatory commission said the combined bill is expected to increase, in real terms, at an annual average of 3.1 per cent over the five years.
The regulator said it took into account the change in actual and expected inflation, as well as additional claims by Icon for operating expenditure and increased financing costs when shifting on its proposed price rise released in October last year.
Icon Water had been pushing for a price increase 2 percentage points higher than the final decision.
The service providers' revenue allowance has also been reduced by 5.1 per cent, or $102 million over the five-year period, which the regulator says was reflected in its decision.
"The commission appreciates Icon Water's cooperative approach and constructive engagement throughout the price investigation," Mr Dimasi said.
"We also recognise the value of submissions from consumers and community groups in reaching this decision."
Icon's 2023-28 spending:
Icon Water's spending plans for 2023-28 include:
- Lower Molonglo Secondary Treatment Bioreactors Upgrade: $212.2 million.
- Lower Molonglo Biosolids Management Renewal: $73.4 million.
- Sewer Mains Renewal Program: $67.8 million.
- Cotter Pump Station Upgrade: $25.3 million.
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