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Gippsland Water Responds to Government Pricing Change
Minister for Environment and Conservation’s announcement today regarding prices increases in the water industry
By Gippsland Water - 26th June 2001 - Back to News
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In acknowledging the Minister for Environment and Conservation’s announcement today regarding prices increases in the water industry, Gippsland Water’s Chief Executive Officer John Mitchell noted that these price rises are the first increases since a reduction of 18% was introduced in January 1998. In fact, the last price rise for Gippsland Water customers was in 1996.
Today’s announcement enables Gippsland Water to increase prices for residential and commercial customers by 4.9%. This increase will apply to fixed and volumetric tariffs.
Mr Mitchell indicated that the increase would see prices in the Gippsland Water
area (for a 20ml residential service) alter as follows:
|Water service charge
||$64.00 per annum
||$67.15 per annum
|Wastewater (sewerage) service charge
||$192.00 per annum
$201.40 per annum
|Water volumetric charge
||$0.50c per kilolitre
||$0.525c per kilolitre
Mr Mitchell explained that the average annual water usage in Central Gippsland is 230 kilolitres per annum. Using this figure, the increase will equate to an annual increase of approximately $18.30 per household.
Mr Mitchell concluded by saying that the increase would assist Gippsland Water’s financial position. “We have experienced significant financial losses over the past three years and even with this increase our budget forecast is for an operating loss of over $3 million in the next financial year. During this period since 1996 we have made significant capital investments to ensure we continue meet the various water and wastewater quality guidelines. In addition, further investments have been made to improve other functions of our business, particularly those relating to customer service.”Mr Mitchell indicated that Gippsland Water would continue to monitor and review all aspects of the organisations revenue and expenditure to ensure future financial sustainability.
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