3000 kb - Mid Western Regional Council - NSW Government

Service Pricing
This section of the Plan outlines Council's intentions regarding the pricing of sewerage
services.
Council's pricing policy should conform to the following general principles:
Equity - adoption of user pays principles in accordance with the August 2007 DWE
Guidelines. Residential tariff to be a fixed charge and non-residential revenue to be
collected via a two-part tariff which reflects the level of water used and hence the load on
the sewer system through discharge. (It is considered equitable that people pay for the
cost of the services they use).
Financial - provision of adequate cash flows to meet operating costs and to fund future
capital works (as determined in the financial plans).
Customers - provision of a service of desired quality and reliability at a fair and affordable
price.
Cross subsidies - should be fully disclosed in Council’s reporting.
Community service obligations - provision of services to pensioners, disadvantaged
groups and general community amenities, to be recognised.
Other - simplicity of pricing structure for ease of understanding by customers and stability
of income.
Sewerage Tariff structure
Council still has ad valorem sewerage tariff based on land value and a minimum
sewerage availability charge for both residential and non-residential customers. Annual
minimum sewerage availability charges for 2006/07 was $433 p. a and the charges for
2007/08 was $447 p.a.
Council plans to review sewerage tariff structure in accordance with DWE Best Practice
Guidelines by March 2009 and complete implementation of the same in a phased manner
from July 2009. This will allow Council to comply with the recommendations of IPART and
DWE. Council will be adopting a “user pays” system with features such as:
• Access / availability charge for non-residential assessment;
• Trade waste charges set for identified industries; and
• Percentage charge of water consumed reassessed for exceptional
circumstances businesses e.g. a nursery, where most water is consumed
on water plants.
Mid-Western Regional Council Part B - Strategic Plan Page 47
Strategic Business Plan for Sewerage