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Water to Melbourne cheap as chips
#1
Water to Melbourne cheap as chips



Melbourne has one of the lowest cost water supply systems in Australia, a report ordered by the Federal Government has revealed. In 2004/05, Melbourne's cost of $413 per household was lower than every other capital city except for Hobart.



The report coincides with suggestions from the Federal Government that water trading should be extended to urban households, allowing households to buy and sell entitlements.



The proposal has not been well received by the Victorian State Government and State representatives have said that the Victorian pricing model already discourages excessive consumption of water. Victoria has a tiered pricing system that was introduced in October 2004. The tiered system discourages excessive water use because water gets more expensive as household consumption rises. For example, Melbourne water retailer South East Water charges:

  • 81 cents per 1000 litres for residential consumers up to 440 litres per day

  • 96 cents for users of 441-880 litres per day

  • $1.55 for those who use more than 880 litres per day

The other two Melbourne providers, Yarra Valley Water and City West Water, have similar pricing models.



Annual water supply costs (per property)

  • Hobart $312

  • Melbourne $413

  • Adelaide $517

  • Brisbane $522

  • Perth $554

  • Canberra $601

  • Darwin $863

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