Hunter Water has attributed lower borrowing rates for helping keep the lid on water price rises in coming years. But it still remains unclear how much water prices will change.
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Hunter Water issued a media release last week that said its latest pricing proposal to the Independent Pricing and Regulatory Tribunal (IPART) would result in a 7.2 per cent drop in the average annual household bill over four years.
It clarified on Monday that this calculation did not include inflation or stormwater costs.
IPART will hold a public hearing in Newcastle on Tuesday to discuss the pricing proposal.
Under Hunter Water's first proposal, submitted in July, a typical household bill would have risen by 23 per cent and a typical apartment bill would have risen by 34 per cent over five years (including inflation) from July 1 2020.
But under a revised proposal submitted in November, a typical household bill would increase by six per cent and an apartment bill would increase by 11 per cent over five years.
A key component of the state-owned corporation's new proposal is to move from a five to a four year pricing period.
Without taking inflation costs and stormwater into account, Hunter Water estimates the new proposal would result in a 7.2 per cent drop in the average annual household bill and a 3.4 per cent drop in the average apartment bill over four years.
The new estimate is the result of lower interest rates, which have moved from 4.1 per cent to 3.2 per cent.
Hunter Water has also reconsidered the impact of drought on water usage.
"We believe a shorter price path will provide us with the flexibility we need to deal with these uncertain conditions," chief financial officer Jennifer Hayes said.
Hunter Water has also proposed investing $724 million on infrastructure, technology and services over the next four years.
The work would include major upgrades of the region's water and wastewater systems as well as improving water conservation and sustainability initiatives.
IPART received 56 formal submissions and 22 online feedback comments to its initial issue paper.
They included a submission from a Hunter resident who urged Hunter Water to scrap connection and service charges and charge only for water.
"Overall the people using less water would pay less per year, and those wasting water would pay more per year," the submission said.
"Currently with water so cheap per litre there is little to no incentive to change habits."
Key issues that will be discussed at Tuesday's hearing include: should higher water usage charges apply during droughts?, should discounts be removed for large water users?, should apartments pay the same water and wastewater service charges as houses? and should prices be set for four or five years?
The hearing will be held at the Harbourview Function Centre from 10.30am until 2.30pm. It will be followed by a drop-in session until 7pm.
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