COMBINED water and sewerage services bills in Canberra will rise by an average 6.1 per cent a year for the next five years.

The Independent Competition and Regulatory Commission on Monday released its final decision and price direction for regulated water and sewerage services prices, which determines the amount of revenue Icon Water can earn, and what prices it can charge over the period July 1, 2023-June 30, 2028.

Senior Commissioner Joe Dimasi said the cost to an average household consuming 200kL a year would be an average increase of 6.1 per cent a year over the regulatory period.

“Under our final decision, an average residential customer will pay $1249 for its annual combined bill in
2023-24, an increase of $72 (or 6.1 per cent) compared to 2022-23,” he said.

“However, despite this increase, the combined water and sewerage services bills for residential consumers
in the ACT will be around the average of comparable jurisdictions.”

“An average non-residential customer consuming 5000kL per year with 50 flushable fixtures installed will
see an increase of $2951 (or 6.2%) in its annual bill in 2023-24.”

The commissioner said the primary drivers of the price increase were the recent high levels of inflation, higher expected financing
costs for Icon Water’s investments in the 2023-28 regulatory period and a significant increase in proposed
capital spending by Icon Water.

This was nearly $270 million more than the current period and included:

• 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)

These factors had been partially offset by the growth in Canberra’s population and the ability to spread
these increased costs across a broader customer base.
The final price increase of 6.1 per cent determined by the commission was higher than the price increase estimated
in the draft report (4.2 per cent). This mainly reflected the movement in actual and expected inflation since October
2022, additional claims by Icon Water for operating expenditure and increased financing costs.