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How prices are set
What influences pricing?
Every five years we develop a Water Plan that details the service standards to be achieved during the timeframe of the plan.
The plan includes assumptions about cost of maintaining service standards, captial works needed to maintain and improve service standards, and inflows to our storages, water availability and likely water restriction levels.
Customer pricing is based on these assumptions and in turn determines what our revenue is likely to be.
Do all water corporations have a Water Plan?
Yes, all 19 water corporations across Victoria have five year Water Plans. This includes both urban and rural water corporations. The current water plan period is from 2008 to 2013.
What role does the Essential Services Commission (ESC) play in the Water Plan?
The ESC is the independent industry regulator. They check that our costs are well justified and that our prices are fair. We can only charge prices approved by the ESC.
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About the pricing review
Why did we ask the ESC to review our pricing?
When our existing Water Plan was written, our region had experienced five years of low rainfall.
The plan included assumptions that the drought would ease and possibly our storages would start to recover. This has not happened. Our climate has remained very dry. We have not been able to ease restrictions to the levels predicted.
Not being able to ease restrictions has meant revenue is down. Purchasing water to secure supply has meant expenditure is up. These two factors have resulted in significant financial losses.
We have had to make substantial investments in infrastructure to offset the major risks of drought. This has increased debt and associated interest charges.
To ensure that we are financially viable into the future, we needed to review our assumptions and pricing.
How can a change be made to prices when they were set out at the start of the Water Plan?
Within the Water Plan period water corporations can seek permission to review their plans if circumstances have changed. We sought approval from the ESC under the 'uncertain and unforeseen events' mechanism to bring prices already set in the current Water Plan forward.
Has a decision been made?
Yes. The Essential Services Commission announced its determination on 17 June 2010. A full copy of the determination is available on the ESC website. To go to the determination on their website > click here
Is this price change so Coliban Water can make a profit?
No. The price change will put us on a more sustainable financial pathway. This pathway will see us break even or possibly make a small profit in the final year of our Water Plan for the 2012/13 financial year.
What happens if Coliban Water starts to make excess profits because the drought breaks?
The ESC has the right to re-open pricing and to reduce prices.
Is Coliban Water still committed to delivering its capital works program outlined in Water Plan 2008 - 2013?
Yes. This review relates to pricing only. We are still committed to delivering our $214 million capital works program across our region.
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Pricing changes for residential customers?
Will water prices for residential customers change?
Yes. Water usage price increases approved for next year and the year after will be brought forward by two years to 1 July this year.
Water fixed charges will decrease slightly.
Are prices the same for all residential customers?
No. We have two main pricing districts and the prices vary for each district:
Central District includes the major centres of Bendigo, Castlemaine and Kyneton and surrounding towns.
Northern District includes towns along the Murray River such as Echuca, Cohuna & Gunbower.
We also have separate pricing for customers supplied with non-potable (non drinking water).
How do I know which pricing district my town falls in to?
A full list of what towns make up each district is available on our website > click here
Will prices for sewer fixed charges change?
No. Prices set by the ESC in 2008 will continue for sewer.
How can I estimate how these changes will impact me?
We have created an on-line pricing estimator. Customers with internet access can get bill estimates by selecting their town and putting in their anticipated water usage.
To link to the pricing estimator > click here
If you do not have internet access but want an estimate, please call our Customer Contact Centre between 8am and 5.30pm Monday to Friday on 1300 363 200.
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Steps in the pricing structure
Are there any changes to the volumetric levels in the stepped tariffs?
No. The step levels are still the same.
Step 1 > 0 – 200 kilolitres per year (0-548 litres per day)
Step 2 > 200 - 400 kilolitres per year (549 - 1096 per day)
Step 3 > 401+ kilolitres per year (1097 litres plus per day)
What are the new prices for each of the steps?
These tables show the dollar price for each step from 1 July 2010 until 30 June 2011 compared to current prices.
| Central District |
2009-10 |
2010-11 |
| Step 1 |
1.3425 |
1.8573 |
| Step 2 |
1.6240 |
2.2467 |
| Step 3 |
2.6638 |
3.6853 |
|
|
|
| |
| Northern District |
2009-10 |
2010-11 |
| Step 1 |
0.7268 |
0.9027 |
| Step 2 |
0.8992 |
1.1169 |
| Step 3 |
1.4540 |
1.8059 |
|
|
|
| |
| Non-potable Towns |
2009-10 |
2010-11 |
| Step 1 |
0.6015 |
0.6558 |
| Step 2 |
0.7353 |
0.8016 |
| Step 3 |
1.2032 |
1.3117 |
For a bit more information on the stepped pricing > click here
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Rural customer pricing
Are there any changes to pricing for rural customers
No. There will be no change to the prices the Essential Services Commission approved in 2008..
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Non-residential customer pricing
Are there any water pricing changes for non-residential customers?
Yes. Water usage price increases approved by the ESC in 2008 for next year and the year after will be brought forward by two years to 1 July this year. From 2011 to 2013, prices will only increase with inflation.
Water fixed charges will decrease slightly.
Will there be any change to sewer charges?
No. Prices set by the ESC in 2008 will continue for sewer.
Will there be any change to trade waste charges ?
No. Prices set by the ESC in 2008 will continue for trade waste customers, with prices only increasing with inflation for the whole of the 2008-2013 Water Plan period.
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I'm having payment difficulties
What if I can’t pay my bill because of the price increase?
All customers who experience financial hardship should contact us on 1300 363 200 for a confidential discussion of payment options.
By notifying us early, you will have access to a greater range of alternatives and our customer service staff will work with you to develop an appropriate payment solution.
To download a copy of our brochure - Are you having trouble paying your water account? Go to the Your Account section on this website > click here
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Where can I find out more?
Where will I find a full copy of the Essential Services Commission pricing decision?
A full copy of their determination and a statement from the ESC chairman is available from their website www.esc.vic.gov.au or to go directly to the page on the ESC website > click here
What about if I have questions on pricing?
Please call our Customer Contact Centre between 8am and 5.30pm Monday to Friday.
Or you can e-mail or write to us.
To e-mail > click here
To write to us > Coliban Water, PO Box 2770, Bendigo DC, Victoria, 3554.
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