The Queensland Government is set to introduce legislation before the State Parliament to cap water and wastewater distribution prices for Southeast Queensland householders for the next two years starting from 1 July 2011.


The Fairer Water Prices for SEQ Amendment Bill 2011 would ensure that price increases would be kept below the national average dictated by the Consumer Price Index.


The cap will apply to water used from 1 July 2011, which means that bills that include water used prior to 1 July will not reflect the capped price.


“The fact remains the State Government bulk water charges still represent less than a quarter of an average water and sewerage bill. 75 percent of the bill is Council charges, “ Queensland Minister for Energy and Water Utilities Stephen Robertson said


“Under this legislation, Southeast Queensland councils will now be required to put in place a price path, of at least five years, for residential and small business customers from 2013 similar to the State Government’s 10 year bulk water price path,” Mr Robertson said.


Mr Robertson said Southeast Queensland Councils have until July 2011 to provide advice to the Government on their decision to stay with their distributor-retailer or to take their water and wastewater businesses back.