Water bills to skyrocket under O’Farrell: 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 under the O’Farrell Government.

“Barry O’Farrell has personally signed off on a contract to jack up household water bills,” Shadow Minister for Water, Luke Foley said.

"Sydney Water's submission to IPART is due this Friday, but its official statement of corporate intent gives the game away - huge increases to household water bills from 1 July next year.” The statement of corporate intent shows a forecast increase in profit for Sydney Water of 78.7 per cent 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 Premier and Treasurer have also increased the dividend that Sydney Water must pay to the State Government to a massive $245 million next financial year,” Mr Foley said.

“The only way the O’Farrell Government and Sydney Water can make these targets is by jacking up household water bills and shedding staff.

"Water prices will skyrocket for 4.4 million people in Sydney, the Illawarra and the Blue Mountains.

"Sydney Water will make a record profit, the O'Farrell Government will gouge out record dividends, and the losers will be Sydney Water's 4.4 million customers.

"Sydney Water's customers have done the right thing and cut down on water usage. They will now be punished for it with higher water bills.

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

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