Pricing Backgrounder

22 July 2009 

ESC & the Water Plan

Every five years Goulburn Valley Water has to produce a water plan for approval by the Essential Services Commission (ESC).  The water plan outlines the Corporation’s proposed expenditure, both capital improvements and operational costs, over the five year period and revenue that needs to be generated to cover the expenditure. 

The majority of Goulburn Valley Water revenue is generated by the fees its customers pay every four months.  For Goulburn Valley Water’s residential customers there are three fees applicable these include an annual water service fee, an annual sewerage service fee and a water volumetric fee (this is a fee based on every kilolitre (1,000 litres) water used).

The ESC approved water plan outlines the percentage increase in pricing for all services for each year.  In addition to the percentage increase per annum the pricing is also adjusted for CPI increases.

The table below outlines the basic fees for a residential customer for the water plan period – 2008-2012.  The first two columns outline the actual dollar figure including the CPI.  The columns for years 3, 4 and 5 show the approved percentage increase before CPI adjustments.

# does not include CPI Adjustment

For an average household that uses 250 kilolitres of water per year the cost in today’s terms for the water service fee and water volumetric fee would be as follows:

1 July 2009 $320.02 ##

1 July 2010  $341.53 ## *

1 July 2011  $364.86 ## *

1 July 2012  $390.14 ## *

## Does not include the annual sewerage service fee. * does not include CPI adjustment.

Neighbouring water corporation – Yarra Valley Water has a different pricing structure to Goulburn Valley Water.  Yarra Valley Water, like the other two metropolitan water corporations, has an annual water service fee, a three step volumetric price structure (Step 1 - 0-440 litres per day – or 0 – 160 kilolitres per year, Step 2 - >440-880 litres per day or >160-321 kilolitres per day Step 3 >880 litres per day or >321 kilolitres per year) an annual sewerage service fee and a sewerage disposal fee.  Goulburn Valley Water does not have a sewerage disposal fee.

The table below shows what the average customer using 250 kilolitres of water would be charged in 2009 for Goulburn Valley Water compared Yarra Valley Water – for the water component only..

Any quotes from the above information can be accredited to Goulburn Valley Water’s General Manager Finance – Mr Graeme Jolly.

Authorised By P.A. Quinn, 104-110 Fryers Street Shepparton