REDLAND households are likely to pay at least 43 per cent more for water over the next five years.
Prices are set to soar across South East Queensland as residents help fund construction of the $9 billion water grid linking the region’s water supplies.
The Redlands has its own dam and bore water supplies, but the city will be connected to the water grid by the end of the year.
The State Government will seize ownership of council’s water supplies on June 30 and will sell bulk water back to councils at progressively higher prices over the next 10 years to pay for the grid.
The annual water bill for a Redland household using 685 litres a day will rise from $457 now to $655 in 2012/13, according to estimates released by the Government on Monday.
This represents a jump of 43 per cent – or nearly $200 – over five years. Redland and Sunshine Coast councils have been promised lower increases initially as a reward for their foresight in investing in water infrastructure.
The State Government’s promise means prices in the Redlands should not increase above inflation until July next year.
But Redland City Council has questioned this promise, after the Government revealed it would sell bulk water to the council for $620 per megalitre in the coming financial year.
Mayor Melva Hobson said the quoted price was much higher than the council’s current cost of sourcing water from its own supplies. She said residents faced higher water charges in the coming budget if the council had to pay this amount.
Cr Hobson said the council would soon meet with the Government about the issue.
“Given our strong existing position as a bulk supplier, distributor and retailer of water to our residents, we believe Redland residents should be treated more favourably,” she said.
Queensland Water Commission CEO John Bradley said if the council claimed the bulk water price was too high, it was also arguing the State’s $74 million compensation package was too high.
“If so, Redlands has received excess payments it can use to absorb the higher bulk water price. Either way this should not be permitted to impact on their water users,” he said.
Updated water prices will be revealed in the council budget in June.