SA releases draft water price determination
The Essential Services Commission of South Australia (ESCOSA) has released its draft determination paper on water revenues in South Australia for the 2013-14 year, which the Commission claims would see a significant drop in household water prices.
“The average revenue caps contained in the Determination would reduce average real water prices (before inflation) by 5.4%," ESCOSA CEO Paul Kerin said.
“The overall average real reduction in water and sewerage prices combined would be about 3.3% after allowing for a 1.7% increase in average real sewerage prices."
Dr Kerin said that the Commission does not expect to see any increase to water prices over the next three years.
"However, as inflation is relatively low, we expect to reduce average nominal prices for water and for water and sewerage combined from 1 July," Dr Kerin said.
“The main driver of these planned reductions is the substantial operating expenditure savings that ESCOSA has determined. Over the three-year period, ESCOSA has allowed $136.8 million (9.5%) less operating expenditure than SA Water proposed."
South Australian Premier Jay Weatherill welcomed the release of the Draft, saying his Government will now work through the details with the Commission.
The Draft has been released for public consultation and can be found here