Water pain on the way

Press/Media: Expert Comment

Description

Expert commentary re SE Qld water pricing - re: Gympie.

Water pain on the way


Report: Seqwater price hike unavoidable


Scott Kovacevic

scott.kovacevic@gympietimes.com


LONG-TERM pain is on the horizon for Gympie household budgets with southeast Queensland water prices expected to soar over

continue to increase over the period through 2028 even after Seqwater is operating at a profit in order to make 

t

he next decade.
In their latest financial

audit of the state’s water services,0 the Queensland Audit Office has reported that the current operations of Seqwater, the bulk water agency which sells untreated water to bodies including Gympie Regional Council, are unsustainable.

According to the report, the Queensland Competition

Authority is investigating the prices Seqwater should charge from July 1 next year until June 30, 2021.

up for the previous undercharging,” she said.

“The Audit Report states that Seqwater will charge a price high enough to cover the full cost of its debt repayments as well as other operating costs.”

While a spokeswoman for Gympie Regional Council said in June that Gympie prices would remain stable until 2019 at the earliest, Prof Baumfield said they would have little choice but to pass costs on after that thanks to the full-cost pricing policy


Bond University water law researcher Victoria Baumfield said the report paints a grim financial future for households serviced by Seqwater.

“It appears that prices will continue going up every year at least for the next 10 years, if not longer – and indeed, most likely longer,” Assistant Professor Baumfield said.

While price rises were already on the cards to ensure all Queenslanders were paying the same for water by 2019-20, Prof Baumfield said the report suggests those buying from

Seqwater could be slugged further as it tries to claw back the $9.4-billion debt it was saddled with after the Millenium Drought.

“Prices are going to

Queensland had adopted over the past two decades.

“Seqwater will be required to pass those costs on in full to its wholesale customers, including Gympie Regional Council, and Gympie will presumably have to pass those costs on to its retail customers.”

And there seemed to be little option of avoiding it, either.

“I am not aware of any other options other than buying water from Seqwater as Seqwater is the designated (monopolist) water wholesaler for the region.”

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Subject

SE Qld water prices.

Period30 Dec 2017

Media contributions

1

Media contributions

  • TitleWater pain on the way
    Degree of recognitionRegional
    Media name/outletGympie Times
    Media typePrint
    Duration/Length/Size368 words, p. 3
    CountryAustralia
    Date30/12/17
    Description Water pain on the way
    Gympie Times, Gympie QLD, General News, Scott Kovacevic 30 Dec 2017
    Page 3 • 368 words • ASR AUD 188 • Photo: No • Type: News Item • Size: 211.00 cm2 • QLD • Australia • Bond University - Press • ID: 893103362
    View original - Full text: 368 word(s), ~1 min
    Audience
    5,017 CIRCULATION
    Producer/AuthorScott Kovacevic
    PersonsVictoria Baumfield