$48 annual hike proposed for Hunter Water customers by IPART

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newy.com.au – The Independent Pricing and Regulatory Tribunal (IPART) has unveiled draft decisions regarding Hunter Water’s pricing for the 2025-26 to 2029-30 period. The proposed adjustments aim to balance necessary infrastructure investments with the financial well-being of consumers.​

Under these draft determinations, the average household receiving both water and wastewater services would see an annual bill increase of approximately $48 (3.6%) plus inflation over the next five years. This would elevate typical household bills from $1,241 in 2024-25 to $1,481 by 2029-30, excluding inflation. Notably, these proposed increases are more modest than those initially put forward by Hunter Water, which suggested annual hikes of $71 (5.2%) before inflation. IPART Chair Carmel Donnelly highlighted that the primary driver for these increases is the funding of new infrastructure projects, notably the Belmont Desalination Plant.​

The Belmont Desalination Plant, located adjacent to the existing Belmont Wastewater Treatment Works, is designed to produce up to 30 million litres of drinking water daily, accounting for about 15% of the region’s average daily demand. Originally identified in the 2014 Lower Hunter Water Plan as a drought response measure, the project received planning approval in 2021. In January 2024, Hunter Water sought approval to transition the plant from a drought-response facility to a permanent water source enhancing water security in the region. The plant is expected to be operational by 2028.​

Historically, Hunter Water has undergone periodic pricing reviews to ensure that charges reflect the efficient costs of service delivery. For instance, in 2020, IPART’s determination led to a 3.6% reduction in typical household bills, equating to annual savings of $48. These adjustments considered factors such as operating expenditures, capital investments, and demand forecasts.​
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Recognising the potential impact of price increases during a period of heightened cost-of-living pressures, IPART has recommended that the NSW Government expand eligibility for bill relief to a broader range of lower-income households. Additionally, Hunter Water offers hardship assistance programs for customers facing payment difficulties.​

IPART is actively seeking community feedback on these draft decisions. Stakeholders, including households and businesses, are encouraged to participate through surveys and submissions until 6 May 2025. The Tribunal aims to consider all feedback before finalizing its determinations, with the final report scheduled for publication in June 2025. The new pricing structures are set to take effect from 1 July 2025.