Higher water bills needed for pipe repairs

SYDNEY (AAP) – 29 SEPT - Sydneysiders' water bills will need to be increased to fund repairs to ageing pipes, the NSW pricing tribunal says.
Sydney Water applied to increase prices by 15 per cent over four years in its September 16 submission to the Independent Pricing and Regulatory Tribunal (IPART).
The opposition says this means water bills will jump by $969, with inflation factored in.
But IPART said on Thursday that higher water bills are inevitable.
"Failure to invest in our infrastructure can have long-term consequences, and it cannot be ignored because burst pipes represent a hazard and are costly to repair," the tribunal's acting chairman and chief executive Jim Cox said.
"With many ageing water pipes below Sydney's streets, it's little wonder that our infrastructure and the price of water are a current topic of debate."
IPART presently allows Sydney Water to earn a 7.5 per cent return on its assets if it operates efficiently, but this level is under review.
Mr Cox said Sydney Water needed to earn a reasonable return on its assets.
"In the end, every generation must pay their fair share of costs for the services they use," he said.
"It's a balancing act to weigh up the long-term financial viability of Sydney Water against the impact on customers over the next four years."
IPART will make its final pricing determination in June 2012, with the changes to come into effect a month after that.
The tribunal on Thursday called for public submissions.