Water bills to skyrocket: Sydney Water budgets for astonishing 78% increase in profit next financial year

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Water prices are set to skyrocket from 1 July next year, with Sydney Water budgeting for an astonishing 78 per cent increase in profit next financial year.

The Sydney Water Statement of Corporate Intent: 2011-12 to 2015-16 was tabled in the Upper House of the NSW Parliament late last week.

The document is signed off by Premier Barry O'Farrell and Treasurer Mike Baird, as well as Sydney Water's chairman and managing director.

Sydney Water's official Financial Performance Targets show a forecast increase in profit before tax of 78.7% next financial year, when new water prices come into effect:

Profit before tax forecast:

  • 2011-12: $387.8 million
  • 2012-13: $693.3 million*

The O'Farrell Government will increase the dividend that Sydney Water must pay to the State Government, to a massive $245 million next financial year.

"Water prices will skyrocket for 4.4 million people in Sydney, the Illawarra and the Blue Mountains" said Shadow Minister for Water Luke Foley today

"The O'Farrell Government will have to answer for this - the Premier and his Treasurer have personally signed off on these budgets for the Sydney Water Consolidated Group."

IPART is currently reviewing Sydney Water's prices, with the new price determination to take effect on 1 July 2012.

"Sydney Water's submission to IPART is due on 16 September, but this document gives the game away: huge increases to household water bills from 1 July next year." said Mr Foley.

"In opposition, Mr O'Farrell was on the side of hard working families facing cost of living pressures. Now he's in government, he signs off on Financial Performance Targets for Sydney Water that will mean huge increases to household water bills.

"This reveals that Mr O'Farrell has become out of touch very early in the life of his premiership."

* Source: Sydney Water Statement of Corporate Intent: 2011-12 to 2015-16, page 4.