Sydney Water bills could increase by 50 per cent to fund new infrastructure to keep up with rising population

Sydney residents may have to pay an extra 50 per cent on their water bills over the next five years as the city’s population continues to grow.

Sydney Water has proposed an 18 percent increase in water bills for the next financial year, and a further 6.8 percent each subsequent year.

The proposed change amounts to an increase of $4.70 per week for the average water user, totaling more than $250 over a year. Each year after that, the water bill will increase by $115.

According to The Daily Telegraph, Sydney Water plans to increase water prices to support the network upgrade, which is expected to cost more than $26 billion over the next five years.

Nearly $10 billion will be funneled into operating costs, and $16.6 billion will be spent on infrastructure, with a focus on western Sydney.

Sydney Water managing director Roch Cheroux said “aging assets, population growth and climate change resulting in more unpredictable and extreme weather events” were some of the key reasons for the upgrade.

The NSW Government’s housing plan will deliver almost 400,000 new homes across the state by 2029.

Sydney residents could see dramatically higher water bills.

As the city expands, many of the newer suburbs rely on old and outdated infrastructure for their water, which is now reaching its limits.

The housing target may only be achieved if 50,000 km of new pipelines are installed.

The majority of the $26 billion budget will be spent on wastewater, with operating costs focused primarily on drinking water.

“The urgent need to support a rapidly growing population and service new homes in green areas has also pushed our existing capacity to the limit,” Cheroux said.

“Our infrastructure needs significant renewal to meet the demands of today and prepare for those of tomorrow.”

Sydney Water will not be able to increase its prices unless it receives approval from the independent Pricing Regulatory Tribunal (IPART).

The 546-page proposal was submitted to IPART, with Tribunal Chair Carmel Donnelly confirming that it ‘will assess whether these proposed cost increases are justified, so that customers only pay what water companies need to efficiently deliver their services to customers’.

Ms Donnelly said IPART will investigate whether the prices are ‘in the best interests of customers’ and ‘promote value for money’.

If approved, the higher costs would be felt next year.

Sydney Water’s general manager of customer experience, Denisha Anbu, said the company “does not take price increases lightly” and “recognizes the impact on our customers”.

As part of the five-year plan, she said Sydney Water will set aside $1 billion to support customers who “need it most”.

“We must remember that Sydney Water prices are among the lowest in the country – aside from inflation, they have not increased in the last decade,” Ms Anbu said.

“Even with this proposed price increase, we remain among the lowest in the country.”