Council plays leadership role in regional water model

Date: Tuesday, 8th September 2009

Townsville City Council is leading the way in developing a best practice pricing model for water and wastewater services in regional Queensland.

Townsville Water has initiated a working group with other councils to establish a shared model that provides consistency in pricing and long-term sustainability for water services in regional Queensland.

The council aims to have a model in place by early next year to meet a State and Federal Government requirement to adopt competitive pricing for water services.

As part of the changes, water users will pay an access fee and a usage charge in the same way they pay for telephone and electricity.

Mayor Cr Les Tyrell said a strong regional approach would avoid the same reforms that had occurred in south-east Queensland where the State had taken over water services.

“All councils large and small are in the same boat in having to adopt competitive pricing and long-term financial plans for water services in their communities. It makes good sense that we work together to adopt consistent, sustainable pricing and planning for water users right across regional Queensland,” Cr Tyrell said.

“It sends a very strong message that we can meet our regulatory pricing obligations and deliver high quality water services to our communities without the need for the sorts of Government reforms imposed in the south of the State.”

The Water Business Committee today endorsed Townsville Water’s participation with regional councils on a steering committee that will work with Queensland Treasury Corporation to develop the model by January 31.

Preparation of the shared model has already received strong support from the State Government, Queensland Water Directorate, and most large regional Councils.

The model will determine the price of water in accordance with QLD Competition Authority Guidelines and best practice principles, and allow water businesses to develop 20 year financial plans.