Frequently Asked Questions
What is a Price and Service Plan?
It outlines the services standards customers can expect with regards to water quality, wastewater quality and service provision, along with the charges customers will pay for those services.
Ben Lomond Water is required to submit a draft Price and Service Plan to the Office of the Tasmanian Economic Regulator (the Economic Regulator).
The Economic Regulator is an independent body that reviews the plan, and then makes a decision as to whether the plan is approved. Before making a decision the Economic Regulator consults with our customers. The first Price and Service Plan will be for the period 1 July 2012 to 30 June 2015.
How will the change in price affect me?
Ben Lomond Water has determined target tariffs for fixed water and sewerage charges and for water usage charges. These target tariffs are included in the Price and Service Plan Executive Summary.
If you are a residential customer paying below the target tariffs your fixed charges will increase by a maximum of $100 ($50 for water and $50 for sewerage) per year until you reach the target. This is an increase of less than $2 a week. When you reach the target tariff your fixed charges will rise in line with the target.
A residential customer is one that has a standard 20 mm water connection and a standard house / unit sewerage connection.
If you are already paying above the target tariff for either water or sewerage or both, those charges will not be increased while they remain above the target.. A review will be undertaken at the end of 2013/14 and if you are still paying above the target it is likely that you will receive a reduction.
Why should I have to pay for water and sewerage services?
The cost of building, maintaining and operating water and sewerage infrastructure is very high. It is necessary for customers who use these services pay the cost of providing them. Part of the price reform process is to ensure that over time everyone receiving the same service pays the same price.
Ben Lomond Water needs to undertake significant capital works to improve drinking water quality and to overcome the environmental damage caused by ageing wastewater treatment plants.
Without increases in charges Ben Lomond Water cannot undertake the projects needed to ensure our communities have access to quality drinking water and that the environment is not being damaged by poor wastewater treatment.
Why are there more changes? I pay more for water and sewerage than when the council ran it and now it’s going up again.
Ben Lomond Water was required to charge in the same manner as councils for water and sewerage. Our charges are based on the 08/09 charges raised by councils and should have been removed from your council rates notice in subsequent years. We have been allowed to increase prices in accordance with the Interim Price Order. It is important to also remember that prices have been kept artificially low as a result of the State Government’s 5% cap and rebate. Changes in the recent State Budget mean that cap has been removed and only a portion of the budgeted for rebate will be paid to Ben Lomond Water.
Ben Lomond Water needs to undertake significant capital works to improve drinking water quality and to overcome the environmental damage caused by ageing wastewater treatment plants.
Without increases in charges Ben Lomond Water cannot undertake the projects needed to ensure our communities have access to quality drinking water and that the environment is not being damaged by poor wastewater treatment.
One of the significant challenges faced by Ben Lomond Water has been to assess the many different tariffs charged by the eight councils in our region and introduce fairness into the system.
We acknowledge that our customers have been through significant change already but we hope that by releasing this information now they are able to plan and budget for the future with certainty.
Why will prices change?
Customers across the region are charged widely different amounts for the same services. Many of our customers believe this is inequitable and we agree. We want to move, over time, to ensure everyone receiving the same service pay the same amount.
We also have a small number of customers who do not have water meters and some who have a meter but receive a so-called ‘free allowance’. By July 2012 we are required to move to a full two-part water charging arrangement. This means every property must have a meter and everyone must pay for consumption from the first kilolitre consumed.
Ben Lomond Water needs to undertake significant capital works to improve drinking water quality and to overcome the environmental damage caused by ageing wastewater treatment plants. Significant investment is needed across our region and charges to our customers for the services provide vital revenue.
Without increases in charges Ben Lomond Water cannot undertake the projects needed to ensure our communities have access to quality drinking water and that the environment is not being damaged by poor wastewater treatment.
We plan to invest around $250million over ten years.
Why are some people’s charges not increasing?
We have customers paying anywhere from a couple of hundred dollars up to $2000 for the same services. This means that while most are not paying enough, some are already paying too much. It’s our job to ensure everyone pays a fair amount. This means those customers already paying too much should not pay more.
If I’m one of those customers already paying too much, why isn’t my charge being reduced?
Customers already paying above our target tariffs will pay the same amount until 2013/14 while they remain above the target. We will then undertake a review and if we believe customers are still paying too much we will likely begin to reduce their charges.
In the meantime we are endeavoring to limit as much as possible price shocks for those customers facing increases. We are aware our customers are facing cost of living pressures and we have worked hard to move towards our target tariffs without large price shocks. If we were to reduce some customers’ accounts this would force other customers to pay significantly more.
We believe this is the fairest way to transition to a more equitable system in the long run.
Why are the sewerage charges going to be higher than water charges?
When taking into account the water usage charge, the costs of water and sewerage are similar.
Does our Pension concession allowance rise to reflect these price increases?
The pension concession is determined by the State Government. It is also paid by the State Government.
Will we have a reduced charge for vacant land as it seems unfair that we pay the same rates for not using the infrastructure?
Vacant land will pay the same fixed water charge but not pay for water consumption. The vacant land target tariff for sewerage is 60% of the serviced land charge. This means that for both water and sewerage vacant properties will pay less.
With the huge increase in AAV ratings how is this going to affect my account?
It won’t. Some existing charges have been based on the 2008/09 AAV. In future, charges will not have any AAV component.
With these increased charges can we expect to receive our accounts in a reasonable timeframe with no surprises 2 years later?
We acknowledge that we have encountered many difficulties with billing over the last two years. However, we have now implemented a new, modern billing system and we expect these problems to be a thing of the past. There are still a small number of properties where we are working on the correct charge but we expect these to be resolved soon.
Will we still be granted our yearly water usage allowance? (Councils where applicable)
No. From 1 July 2012 we are required to bill on a two-part basis, which means everyone has to pay for consumption from the first kilolitre.
Why has Ben Lomond Water released the Executive Summary of the proposed Price and Service Plan?
Ben Lomond wants to provide our customers, the community and other interested parties with an early opportunity to have some input before we submit the draft plan to the Economic Regulator.
Following submission of the draft, the Economic Regulator will provide a further community consultation opportunity.
Why hasn’t the entire Plan been released?
The full Price and Service Plan is a very extensive document. We have chosen to release the summary as it contains the main points which we believe will be of most interest to our customers.
This is not the only chance for people to comment. The Economic Regulator will undertake a consultation period during which the full plan will be made available.
How can I have my say about the draft Price and Service Plan?
Customers are encouraged to provide feedback on the draft Plan prior to its submission to the Economic Regulator. Written comments should be provided by no later than 16 August 2011.
How will the Economic Regulator make a decision on the prices?
There are two parts to the Economic Regulator’s determination. The first is price, but the second, equally important matter, is the service standard that we are required to provide to our customers. The Economic Regulator needs to consider the revenue Ben Lomond Water needs to deliver the required service standards whilst at the same time investing significant sums in the improvement of drinking water quality and overcoming the environmental damage caused by our ageing wastewater treatment plants. These matters need to be balanced against the impact of price movements on customers.
What happens if I am not a standard residential customer?
The same target tariff arrangement applies except that target tariffs and maximum increases are for each equivalent standard connection. For water connections the equivalent standard connections are shown on Page 13 of the Executive Summary. Equivalent Tenements for non-residential sewerage connections will be calculated in accordance with the Water Services Association of Australia methodology.