Strategic Business Plans for Water Supply and Sewerage
Strategic Business Plans for Water Supply and Sewerage
Strategic Business Plans for Water Supply and Sewerage
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7.6 Pricing<br />
The primary purpose of water supply <strong>and</strong> sewerage pricing is to determine fair pricing of services<br />
which achieve full cost recovery <strong>and</strong> provide strong pricing signals to enable each customer to<br />
balance the benefits <strong>and</strong> costs of using the utility’s services.<br />
CHW complies with the 11 requirements <strong>for</strong> pricing <strong>and</strong> regulation of water supply, sewerage<br />
<strong>and</strong> trade waste, of the NSW Office of <strong>Water</strong> Best-Practice Management Guidelines.<br />
<strong>Water</strong> <strong>Supply</strong><br />
1 Full cost recovery without significant<br />
cross subsidies<br />
<strong>Sewerage</strong> <strong>and</strong> Trade Waste<br />
1 Full cost recovery without significant cross<br />
subsidies<br />
2 Complying residential charges with<br />
pay-<strong>for</strong>-use water pricing,<br />
independent of l<strong>and</strong> value<br />
2 Complying residential charges, independent<br />
of l<strong>and</strong> value<br />
3 Complying non-residential charges 3 Complying non-residential charges<br />
4 Development Servicing Plan with<br />
commercial developer charges<br />
4 Development Servicing Plan with commercial<br />
developer charges<br />
5 At least 75% of residential revenue is<br />
from water usage charges<br />
5 Complying trade waste <strong>and</strong> fees charges<br />
6 Appropriate trade waste regulation policy<br />
<strong>and</strong> approvals<br />
Assessment of <strong>Water</strong> <strong>Supply</strong> Charges<br />
The NSW Office of <strong>Water</strong> has developed best-practice guidelines <strong>for</strong> water supply <strong>and</strong><br />
sewerage. With respect to pricing of water supply services, the Office of <strong>Water</strong> is keen to send<br />
pricing signals to customers. This is achieved through:<br />
<br />
<br />
High usage charge, to empower customers to reduce their water bill by reducing<br />
consumption. For utilities of CHCC size, the requirement is that 75% of revenue from<br />
residential charges is generated from usage charges.<br />
Read the water meters 4 times a year, to capture the seasonal variation <strong>and</strong> provide<br />
customers with more accurate reading.<br />
The CHCC 2009/10 TBL <strong>Water</strong> <strong>Supply</strong> Per<strong>for</strong>mance Report states that the residential revenue from<br />
usage charges was 76% of the residential bills. CHCC tariff complies with the both requirements<br />
mentioned above.<br />
Assessment of <strong>Sewerage</strong> Charges<br />
The best-practice management guidelines require a two-part tariff <strong>for</strong> non-residential customers.<br />
CHW non-residential charges are a two-part tariff. Access charges are based on a sewer<br />
discharge factor <strong>and</strong> water meter factor. The usage charge can be estimated using the sewer<br />
discharge factor <strong>and</strong> the metered water consumption.<br />
May 2012<br />
HydroScience Consulting<br />
Coffs Harbour City Council <strong>Strategic</strong> <strong>Business</strong> Plan Page 41
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