Feedback invited until June 3 on proposed shorter-term WaterNSW prices: IPART's Prices for WaterNSW Greater Sydney from 1 October 2025
May 14, 2025
IPART is reviewing maximum prices for WaterNSW’s bulk water services. IPART has released an Information Paper and seeks feedback on proposed shorter-term prices that will be in place for up to 3 years.
WaterNSW has sought to increase in its revenue by 43% over the next 5 years including a 38% increase for Greater Sydney and 53% for regional and rural NSW. This would lead to price increases above what customers have told WaterNSW they can afford.
See:
IPART seeks feedback on water pricing proposals: Submissions close December 9 2024 and
Scotland Island Dieback Accelerating: IPART Review of increases In Sydney Water's Pricing Proposals An Opportunity to ask: 'what happened to the 'Priority Sewerage Scheme' for our Island?
Sydney Water: Our 2025–30 price proposal
The Tribunal is not convinced at this stage that the full increases proposed by WaterNSW are sufficiently well justified. Additional information, consultation and analysis are required. However, the current pricing determination for WaterNSW’s regional and rural services expires on 30 June 2025 and cannot be extended to allow more time for assessment of WaterNSW’s proposed increases.
Tribunal Chair Carmel Donnelly said, “The Tribunal proposes to set shorter-term prices that could be in place for up to 3 years for both Greater Sydney and Rural Valleys. While these prices are in place, IPART will continue further review of WaterNSW’s proposed prices for bulk water services in Greater Sydney and regional and rural NSW to inform future pricing decisions.”
Shorter-term draft prices for WaterNSW’s regional and rural customers would increase by 1.9% plus inflation from 1 July 2025 and then by inflation only on 1 July 2026 and 1 July 2027.
For WaterNSW Greater Sydney, where Sydney Water is the main customer, draft maximum bulk water prices would increase by 6.9% plus inflation from 1 October 2025 and then by inflation on 1 July 2026 and 1 July 2027.
“IPART’s current review to set the maximum prices for WaterNSW has been complex,” said Ms Donnelly. “WaterNSW has proposed a significant increase in revenue, which implies large price increases for customers. Some broader issues have also emerged during the review. WaterNSW indicates the main drivers of the proposed increases are macroeconomic factors and increased requirements which have imposed additional costs. At the same time demand for WaterNSW services is forecast to decrease.”
The shorter-term draft prices could be in place until June 2028 but may be replaced earlier if ongoing work by WaterNSW and IPART enables new price determinations earlier. Any new determinations would be made only after IPART issues a draft report, seeks and considers submissions and holds a public hearing.
“Our information paper and WaterNSW’s pricing proposal are available on IPART’s website. We welcome community feedback via IPART’s website until 3 June 2025,” Ms Donnelly said.
“We are also undertaking financial analysis to ensure the draft shorter-term prices will enable WaterNSW to meet its obligations.”
The Tribunal will consider all feedback and release shorter-term pricing decisions in June 2025 for WaterNSW’s regional and rural services to take effect from 1 July 2025 and in September 2025 for WaterNSW’s Greater Sydney services to take effect from 1 October 2025.
To read the Information Paper provide feedback visit: www.ipart.nsw.gov.au/review/water-metro-pricing/prices-waternsw-greater-sydney-1-october-2025
Related IPART Documents:
Maximum prices for Water NSW's Greater Sydney Services from 1 October 2025 - Draft Determination May 2025
Prices for WaterNSW bulk water services - Information Paper, May 2025
Draft Decisions on Hunter Water's Prices
On April 9 2025 IPART released its draft decisions on Hunter Water’s maximum prices from 2025-26 to 2029-30.
Tribunal Chair Carmel Donnelly said Hunter Water’s price proposal did prioritise and defer expenditure where appropriate to limit price increases in a time of high cost of living, while also including investment so Hunter Water can deliver on important customer outcomes such as water security.
“However, the Tribunal has found that prices do not need to increase as much as Hunter Water proposed,” Ms Donnelly said.
Under IPART’s draft decisions, bills for a typical household customer receiving water and wastewater services would increase, on average, by $48 (or 3.6%) plus inflation each year for 5 years from 1 July 2025. This would see typical household bills increasing from $1,241 in 2024-25 to $1,481 by 2029-30, plus inflation, which is lower than the yearly increases under Hunter Water’s proposed prices (of $71 or 5.2% per year before inflation).
“The increases in draft maximum prices and bills are mainly driven by the efficient costs of new infrastructure, including the proposed Belmont desalination plant,” Ms Donnelly said.
“We have set draft prices that reflect the efficient costs of Hunter Water providing its services, and have phased in these price increases over 5 years.”
“Under our draft prices, Hunter Water customers will continue to pay around the median of water bills when compared with other major water businesses around Australia.”
“We know there are some households that may be more impacted by these prices during this time of high cost of living and that is why we have also made recommendations to the NSW Government to increase rebates and expand eligibility for bill relief to a broader range of lower income households.”
Hunter Water also has hardship assistance programs for customers facing difficulties paying their bills, IPART stated.
“We are inviting community feedback on these draft decisions, and we’re interested to hear from customers of Hunter Water, whether they are households or businesses. We will consider all comments made through our survey and in submissions before we finalise our decisions.”
IPART’s Draft Report and Hunter Water’s pricing proposal are available on IPART’s website. We welcome community feedback via the website, or via our customer survey, until 6 May 2025. The Tribunal will publish a Final Report with final pricing decisions in June 2025. The prices set in this review will apply to customers from 1 July 2025.
