2013-14 Water and Sewerage Pricing

Everything you need to know about Unitywater's new pricing structure

Unitywater is phasing in a new pricing structure from 1 July 2013. This will mean lower fixed access charges and higher prices for the water you use and the sewage you produce. This userpays approach will give you more control over your bill – if you use less, you will pay less but high water and sewerage users will pay more.

This is a complex task and the new pricing structure will be phased in for all Unitywater customers over the next two financial years.

2013-14 pricing structure overview

Why is Unitywater introducing a new pricing structure?

Our customers have said they want more control over their water and sewerage bills with a user-pays approach and we’ve listened. Unitywater inherited a complex set of fees and charges from six former council areas when it was established in 2010. Under the new structure being phased in over two years from 1 July 2013, the number of fees and charges will be reduced and standardised charges for water and sewerage usage will apply across the Moreton Bay and Sunshine Coast regions.

When will the changes take effect?

The new pricing structure will be phased in over two years from 1 July 2013 according to the following schedule:

Schedule for introduction of new pricing structure
Stand-alone houses - residential *This includes houses only – not units, apartments, townhouses, duplexes etc	From 1 July 2013
Non-profit community and sporting groups as designated by Moreton Bay and Sunshine Coast Council	From 1 October 2013
Vacant land - residential zoning	From January 2014
Other residential housing (units, apartments, townhouses) *This excludes mixed use. An example of mixed use is an apartment building with a cafe or shops on the ground level.	By June 2014
Retirement villages	By June 2014
All other customers	2014-15 financial year

A three per cent increase will apply to Unitywater’s water and sewerage charges for all customers from 1 July 2013. This will be the first increase in Unitywater’s charges for two years.

What does this mean for customers in Moreton Bay?

When the new structure is introduced, fixed water and sewerage access charges will decrease and usage charges will increase. That means those who use less will pay less but high water and sewerage users will pay more.

The changes include reducing the number of pricing tiers for water usage from three to two, increasing the usage threshold for tier one from 767 to 822 litres per day (280 to 300 kilolitres per annum) and introducing a charge for the volume of sewage produced.

Under the new structure, annual water fixed access fees will be reduced by $52 and sewerage fixed access fees by $50. The new tier one price for water usage is 64.4 cents per kilolitre (1000 litres) and $1.288 per kilolitre for tier two. The price for sewage produced will be 64.4 cents per kilolitre. This sewage charge is capped at 740 litres per day for residential customers.

New Residential Pricing Structure: Moreton Bay Region
	2012-13		2013-14
Charge	Usage (L/day)	Price ($)	Usage (L/day)	Price ($)
Water (by volume)
Tier 1	up to 767	0.176 per kL	up to 822	0.644 per kL
Tier 2	more than 767 and up to 986	0.849 per kL	more than 822	1.288 per kL
Tier 3	more than 986	1.305 per kL	n/a	-
Water access		346.00 per year		293.56 per year
Sewerage (by volume)	n/a	-	up to max. 740	0.644 per kL
Sewerage access		744.88 per year		695.24 per year
State Government Bulk Water charge		2.192 per kL		2.437 per kL

L=litres; kL=kilolitres (1000 litres)

What does this mean for customers on the Sunshine Coast?

The changes include increasing the threshold for tier one water usage from 600 to 822 litres per day and introducing a charge for the volume of sewage produced.

Sunshine Coast residents will pay a total of $61 less for fixed water and sewerage access.

The new tier one price for water usage is 64.4 cents per kilolitre (1000 litres) and $1.288 per kilolitre for tier two. The price for sewage produced will be 64.4 cents per kilolitre capped at 740 litres per day for residential customers

New Residential Pricing Structure: Sunshine Coast
	2012-13		2013-14
Charge	Usage (L/day)	Price ($)	Usage (L/day)	Price ($)
Water (by volume)
Tier 1	up to 600	0.538 per kL	up to 822	0.644 per kL
Tier 2	more than 600	1.036 per kL	more than 822	1.288 per kL
Water access		232.04 per year		231.76 per year
Sewerage (by volume)	n/a	-	up to max. 740	0.644 per kL
Sewerage access		570.80 per year		509.84 per year
State Government Bulk Water charge		1.61 per kL		1.855 per kL

L=litres; kL=kilolitres (1000 litres)

What does the new pricing structure mean for my bill?

The changes to your Unitywater bill will depend on the charges that currently apply in your area and your own water usage patterns. If you reduce your usage, you’ll be able to save more under the new structure but if you are a large water user, your total charges will increase.

Why am I getting a three per cent price rise on 1 July 2013 and not the new pricing structure?

Unitywater has announced that its prices will rise by three per cent from 1 July 2013. This increase will apply for all customers and it is the first price rise for two years. Since commencing operations on 1 July 2010, Unitywater’s prices have, on average, increased by 1.6% per year for the past three years. This figure does not include the State Government’s bulk water price rises, which Unitywater does not control.

Unitywater’s new pricing structure was designed to be revenue-neutral before this three per cent price increase is applied. That means everyone will receive the three per cent increase, regardless of whether they are moving to the new structure from 1 July 2013. The new structure will be phased in for all Unitywater customers over two years, with 90% of customers expected to be transferred across by 30 June 2014.

How will the size of my water meter affect my water access charge?

Water access fees will be charged according to the size of the water meter. More than 97 per cent of Unitywater customers have a meter size of 25mm or less. The standard access fees will apply for these customers. For the remainder with larger meters (generally large commercial and industrial entities), additional charges will apply according to meter size.

Why are the access fees different across regions?

This is due to the difference in the value of assets contributed by each region and the different fees and charges that existed under the previous councils. Unitywater has standardised usage charges across the Sunshine Coast and Moreton Bay regions under the new structure and intends to eventually standardise all tariffs, fees and charges.

Why doesn’t Unitywater scrap fixed access charges altogether and just charge for water and sewerage usage?

Unitywater is required to provide a certain level of returns to its owner councils under the participation agreement with these councils. We also need to ensure we have adequate revenue to maintain and upgrade our water and sewerage network, so we can continue to provide safe, reliable, around the clock water and sewerage services for our customers. Any shift away from fixed costs in favour of variable costs involves some risk, because consumption levels are not guaranteed. We have increased the proportion of variable costs under the new structure, but we are not in a position to base our charges solely on usage at this time, due to these factors.

Tiers

What is a tier and why have the tiers changed?

Water usage is divided into two tiers, based on how much water you use per day. Different rates apply, with usage above the threshold for tier one of 822 litres per day charged at a higher rate. Sewerage usage is charged under a single tier for residential customers, capped at 740 litres per day.

Unitywater has standardised water and sewerage usage tiers for its residential customers across the Moreton Bay and Sunshine Coast regions under the new pricing structure.

Why did you remove the third tier in Moreton Bay?

For reasons of fairness, simplicity and uniformity, Unitywater has standardised charges for water and sewerage usage across the Sunshine Coast and Moreton Bay. This included reducing Moreton Bay’s existing three tiers to two.

New sewerage usage charge

Why are you charging me for sewerage usage?

Unitywater provides the essential services of collecting, treating and disposing of sewage to the highest environmental standards via its network of pipes, pumps and treatment plants. Sewage includes all the waste and grey water that goes down household sinks, drains and toilets and is discharged from appliances such as washing machines and dishwashers.

Sewerage usage is a volume-based charge for the amount of sewage your household puts into the sewerage network. The amount of sewage you produce directly impacts the load on the network and the cost of providing these services, meeting our environmental obligations and maintaining the infrastructure. Therefore, the more sewage you produce, the more you will pay, which is consistent with user-pays principles.

How is the sewerage usage charge calculated?

Your property has a meter for measuring water you use on your property, but no meter for measuring the amount of sewage you put into the sewerage network.

We therefore calculate your amount of sewage as being 90% of the total amount of water that passes through your water meter. This amount is charged at the price per kilolitre (i.e. $0.644 per 1000 litres), and is capped at an average of 740 litres per day for residential customers.

This is the standard way many water and sewerage utilities calculate sewerage usage charges in Australia. It is supported by independent, external research that shows 90% of the water entering properties ends up in the sewerage network via toilets, drains, sinks and appliances like washing machines and dishwashers. The remaining 10% is used for activities that do not produce any sewage, such as watering gardens, topping up pools, and washing cars or driveways (as the water goes into stormwater drains, not the sewerage network).

Why are the tiers for water and sewerage different?

Unitywater has capped the price of residential sewerage usage to 740 litres per day (270,000 litres per year), which is 90% of the tier one water usage (822 litres per day). This is supported by independent, external research that shows 90% of the water entering properties ends up in the sewerage network via toilets, drains, sinks and appliances like washing machines and dishwashers. The remaining 10% is used for activities that do not produce any sewage, such as watering gardens, topping up pools, and washing cars or driveways (as the water goes into stormwater drains, not the sewerage network).

I use my own tank water for toilet flushing/washing clothes/watering the garden. How does this affect my Unitywater bill?

Using tank water for household purposes instead of metered water from Unitywater’s network will reduce the amount you pay for water and sewerage usage and help keep your bills to a minimum.

Can I avoid the volumetric sewerage charge if I put all of my grey water on the garden?

No. Unitywater calculates the volume of your household sewage discharged into the sewerage network as being 90% of the volume of water you use. This is because there are no meters in the sewerage network.

Impact on customer groups

What does the new pricing structure mean for community and sporting groups?

From 1 July 2013, a three per cent increase to Unitywater’s prices will apply. The new pricing structure will be introduced for not-for-profit sporting and community groups (as designated by the Moreton Bay and Sunshine Coast Regional Councils) from 1 October 2013. Charges according to the number of pedestals and urinal lengths will no longer apply under the new structure. Instead, these groups will be charged for the volume of sewage they produce, consistent with the new user pays approach. About 65 per cent of these customers are expected to benefit from a reduction in their bills when the changes are phased in.

What does the new pricing structure mean for vacant land customers?

The reduction in water and sewerage access fees and the increase in usage charges will benefit vacant land customers. As they generally incur no usage charges, these customers can expect a reduction in their bills when the new structure is introduced in early 2014. Prior to its introduction, a three per cent increase in Unitywater’s prices will apply from 1 July 2013.

What does the new pricing structure mean for other Unitywater customers?

The changes will be introduced for retirement villages and other residential customers before the end of the 2013-14 financial year. Some details about the changes to be introduced in 2014 and 2015 are still being finalised and will be fully explained before the changes apply to customer bills.

Unitywater prices will increase by three per cent for all customers on 1 July 2013, regardless of when the new structure is introduced for their particular customer group.

How can I minimise my bill?

The increased emphasis on user-pays gives customers more control over a larger proportion of their total bill. Variable charges will now comprise 35% of total residential bills in Moreton Bay (up from 25%) and 37% of total residential bills on the Sunshine Coast (up from 29%).

By adopting water-saving habits such as limiting your shower times, using water-efficient appliances, and ensuring dishwashers and washing machines have a full load before they are turned on will help reduce your total bill. The less you use, the less you’ll pay. Visit www.unitywater.com/saving-water for more water saving tips.

State Government bulk water charges

Will the State Government be increasing its bulk water charges?

The State Government has announced that it will increase bulk water charges by 11.2% for Moreton Bay customers and 15.2% for Sunshine Coast customers for the 2013-14 financial year. Unitywater is legally required to pass this cost on in full to our customers so the increase in the price of bulk water will affect your bill.

State Government Pensioner Water Subsidy

Will there be any change to the State Government’s annual Pensioner Water subsidy?

No. The State Government’s subsidy of up to $120 annually ($30 per quarter) for pensioners on their water and sewerage bills will continue to apply.

Moreton Bay Regional Council Rebate

Is Unitywater responsible for removing the rebate in Moreton Bay?

The rebate provided by the Moreton Bay Regional Council is the sole responsibility of council. It is due to expire on 30 June 2013.

Revenue

Will Unitywater make more money from the proposed pricing changes?

No. The pricing structure has been designed to be revenue-neutral before the three per cent increase in its charges for 2013-14 is applied.

Is this just a way to increase prices?

No. The new pricing structure is designed to give customers control over a larger proportion of their bills through a user-pays approach. Variable charges will now comprise 35% of total residential bills in Moreton Bay (up from 25%) and 37% of total residential bills on the Sunshine Coast (up from 29%).If you use less, you will pay less but high water and sewerage users will pay more.

Is this a way to make up for not increasing prices last financial year?

No. Unitywater has opted to increase its prices by three per cent in 2013-14. On average our prices have risen by 1.6 per cent per year since we commenced operations.