Water pricing and impacts on customers

The cost-of-living crisis that has engulfed Australia over the last two years will continue to impact NSW households and businesses for the foreseeable future.

In the last quarter, the Independent Pricing and Regulatory Tribunal (IPART) released issues papers for Sydney Water, Hunter Water and WaterNSW pricing reviews for 2025-2030.  Both Hunter Water and Sydney Water have proposed substantial price increases over the next five years, which will place additional pressures on households, particularly those experiencing financial vulnerability. This will be further exacerbated during periods of drought, when providers will charge higher prices if dam levels fall below 60%.

Drought pricing was first introduced in the 2020-2025 regulatory period for Sydney Water, WaterNSW and Hunter Water customers, however it was not triggered. Both these businesses propose to continue this pricing structure for 2025 to 2030, and if dam levels fall, water customers may experience price increases.

In our submissions to IPART for Sydney Water and Hunter Water, EWON called for:

• Water providers and IPART to think outside the box to mitigate the affordability impact of price increases and drought pricing.

• A review of water rebates to ensure they are fit for purpose for new pricing structures including extending rebates to usage charges during period of drought pricing and widening eligibility for available rebates.

• Water providers to plan an education campaign prior to any drought pricing trigger, to ensure customers are aware of the increased pricing.

Water complaints about our members increased, with a 35% rise in complaints about billing and a 51% increase in supply-related complaints.  High bills were the biggest single issue raised by customers.

EWON acknowledges the extensive work that water providers put into their proposals and the difficulty of balancing these charges, as each specific customer and consumer group will be affected by price changes in different ways. However, we anticipate that significant price increases will result in a further increase in complaints to EWON over the 2025-2030 period.