Urban Utilities Reduces Water Bill Increase After Government Criticism

In short:

Urban Utilities has confirmed water bills for south-east Queensland households will increase by 1.7 per cent or about $28 a year.

It has backed down from the 3.7 per cent increase it announced last week, which the state government criticised after its decision to freeze bulk water charges for two years.

It follows Unitywater, the retailer for the Sunshine Coast, Moreton Bay, and Noosa, announcing on Tuesday it would increase prices by 1.6 per cent.

A major south-east Queensland water retailer has backed down on a planned price hike, which left the government's key cost-of-living measure in tatters.

Urban Utilities last week announced its prices would go up by a greater amount this financial year than the previous, despite a freeze on bulk water charges.

The move was heavily criticised by the state government, which threatened to make law changes to force the company to drop its prices.

The bulk water freeze was one of the LNP's signature cost-of-living relief measures in last week's state budget, forecast to save households around $130 over two years.

In a statement, Urban Utilities confirmed its updated pricing, "following engagement with the Queensland government and shareholder councils regarding approaches to support south-east Queensland's housing growth, while minimising impacts on customer bills".

Average bills will increase by 1.7 per cent, or around $28 annually.

That's a drop from the previously announced 3.7 per cent expected increase to the average bill, a slight increase from the 3.6 per cent in the previous year.

The water retailer describes a typical residential customer as someone using 150 kilolitres of water per year.

It follows Unitywater, the retailer for the Sunshine Coast, Moreton Bay, and Noosa, announcing on Tuesday it would increase prices by 1.6 per cent.

Urban Utilities highlighted the population in its serviced regions, Brisbane, Ipswich, Lockyer Valley, Scenic Rim, and Somerset council areas, was forecast to grow by 500,000 residents in the next 20 years.

"Over $6 billion is planned to be invested in the next decade to maintain reliable services, renew ageing infrastructure and expand the network to support housing growth. This includes $422 million in FY27."

Unitywater also highlighted its investment in infrastructure for the rapidly growing area.

"To help meet the Queensland government's target of building 215,000 new homes over the next 20 years across Moreton Bay, Sunshine Coast and Noosa, Unitywater needs to invest around $2 billion in water and wastewater infrastructure to connect new customers and maintain service levels for existing customers."

Queensland Water Minister Ann Leahy has been contacted for comment.