The unfortunate reality of big increases in costs for the supply and use of our water resources are now with us.  In the metropolitan area non-residential prices move up from $1.220 per kilolitre to $1.432 per kilolitre which is an increase in line with Economics Regulation Authority's (ERA) recommendations.

County, non-residential (band 1 only) water prices move from $1.768 per kilolitre to $1.805 per kilolitre in 2010/11 which is an increase in line with inflation.  So metropolitan pools will see a large increase in their consumption charges and country pools will see a small increase in line with inflation.

The reason for the discrepancy is that the ERA has recommended to government that each individual scheme should be priced on cost recovery principles.  In the metropolitan area all users are charged the same price, so the price is increasing to the long-term cost of production.  Some fixed charges are reducing to offset the rise in volumetric charges, but local government pools are exempt from these charges and so won't see a benefit.

Country Pools such as Bruce Rock will pay more for water

In the country regions there are 15 pricing bands (from $1.805 to $5.948 in 2010/11). Each town is moving to a new band over a long period of time to reflect their actual cost of production.  Local government pools are on a special pricing arrangement where they are charged at band 1 (even though they may be in a band 15 town).  So other non-residential customers in the country will see larger increases, but the aquatic centres will not.

So to recap, the special pricing arrangements for local government pools vary between the metropolitan and country areas.  Because of this, country customers will not see a large increase in volumetric pricing in 2010/11, but metropolitan customers will.

The research that LIWA  is currently involved in is critcial to the industy's long term sustanability.

Information provided by Steve Atkinson of the Water Corporation

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