ERA releases final costing draft report
Western Australia’s Economic Regulation Authority (ERA) has released its final Draft Report on costing and appropriate charges for the services of the Water Corporation, Aqwest and the Busselton Water Board.
The ERA has ruled against Water Corporation’s submission, which would have equated to a revenue requirement of $7.98 billion for the period from 2013 to 2016. The ERA instead ruled that $5.82 billion would be required for the period, 27 per cent lower than what the Water Corporation had proposed.
ERA Chairman Lyndon Rowe ruled that the cost increases associated with wastewater services were inherently unfair because they were based on the value of the property, rather than the cost of actual service.
The Authority has also ruled that the average water and wastewater bill for residents in the Perth metropolitan area should reduce by 10.5 per cent, or $128, in the 2013/14 year.
The Draft Report also found that falling cost pressures in regard to wastewater services should see an reduction in cost for the average household by about 22.2 per cent, equating to $148 in the 2013/14 year. The report concluded that some cost increases will be faced by households in some areas, but will be capped at $50 per year.
The full report can be found here