Sydney water to be more expensive

On the heels of the South Australian increases, and for the same reasons (the cost of a desalination plant), it is reported that Sydney consumers are set to pay more for their water too - - increasing a typical customer's bill to almost $1000 a year.

The price increases will help cover the cost of long-service leave for government staffers and building the Kurnell desalination plant. The rises come despite water supplies approaching record levels and Sydney Water making over $1.5 million in penalties from people breaching water restrictions.

The Independent Pricing and Regulatory Tribunal (IPART) on Friday approved price increases sought by the Sydney Catchment Authority (SCA) for supplying water to Sydney Water. The increases will add around $7 to the average bill this year and totalling $16 in 2011/12.

The rises follow price increases approved last June, which added $126 to the average bill last year. This year, residents will pay an extra $55, followed by $41 more next year and another $23 in the final year. Up to 40 percent of the total of the increases were approved to help pay for the ongoing construction work at the controversial Kurnell desalination plant. On July 1, Sydney Water will also factor in for inflation, estimated to be around 2.5 per cent.