Average Water Bills In Canberra

Does it feel like your water bills are increasing, without any additional water used at your property? It’s not your imagination, your water bills have become more expensive. Following a period of stability through the COVID-19 crisis, water bills in Canberra were increased in 2023-2024. The Independent Competition and Regulatory Commission (ICRC) recommended the rise in annual water and sewerage supply charges, to address the uncertain operating environment ahead.

For the average two-person household in Canberra, the yearly water bill is approximately $1,158. 

This figure includes the annual water supply and sewerage charges, plus Tier 1 water usage for 200 kilolitres. Larger families can expect higher bills due to increased water consumption and the application of Tier 2 pricing for usage above 50 kilolitres per quarter.

The table shows the new prices for water connection and consumption for ACT. Data taken from Icon Water publications.

The price changes were put in place to cover the increase in immediate operating costs as well as long-term factors affecting water supply in the ACT. These include staff wages, infrastructure maintenance, population growth, and climate change impacts. 

While the increase may be unwelcome news for many households, there are ways you can implement water-saving strategies that can help mitigate the impact on family budgets.

Who Regulates Water Pricing In Canberra?

Only one company, Icon Water, provides water and sewerage services to Canberra and the surrounding region. Without any competition in the market, it’s essential that an Independent Competition and Regulatory Commission (ICRC) be used to set water prices and operating standards and act as a voice for consumers.

The ICRC is responsible for determining water and sewerage prices in the Australian Capital Territory. This independent body reviews Icon Water's proposed prices and sets maximum charges for water and sewerage services.

The ICRC conducts regular price investigations, usually every four to five years. During these reviews, the commission examines Icon Water's costs, efficiency, and service quality. The five-year pricing review allows for long-term planning and stability in water management.

The commission is made up of around twelve professionals who work in areas such as economics, social services, conservation, Builders Association, property and rates, St Vincent de Paul Society, and Legal Aid.

Icon Water must comply with the price limits set by the ICRC. The company cannot charge more than the maximum prices determined by the commission for its water and sewerage services in Canberra.

How Are Water Prices Determined?

The regulatory framework aims to balance affordability for consumers with the need for Icon Water to recover costs and invest in infrastructure. The ICRC considers factors such as inflation, population growth, and water security when making its decisions.

The ICRC considers various factors when determining water prices, including:

• Operating costs 
• Infrastructure maintenance and upgrades
• Population growth projections
• Water demand forecasts
• Environmental considerations

Water utilities submit detailed proposals to the ICRC. These outline their projected costs and revenue requirements. The commission then assesses these proposals against benchmarks and industry standards.

Public consultation forms part of the ICRC's price-setting process. Canberra residents and businesses can provide feedback on proposed water pricing changes to help shape the final price determinations. This gives consumers and stakeholders a chance to provide input on proposed water rates.

As well as cost recovery, the ICRC aims to strike a balance between affordability and sustainability.

Once determined, water prices typically increase gradually over the regulatory period. This approach helps to minimise bill shock for consumers while allowing utilities to plan for future needs.

Current Water Prices In Canberra

Taking place from 1 July 2024, until 30 June 2025, the water supply charge (fixed fee) has increased from $211.25 to $224.98 per year. This fixed fee applies to all households regardless of water usage.

Water usage charges are structured in two tiers. Tier 1 pricing, for the first 0.548 kilolitres of water used per quarter 200kL of water annually), prices have increased from $2.41 per kilolitre to $2.56 per kilolitre.

Any water consumed at the property above the average of 0.548 will be priced at Tier 2, with prices increasing from $4.84 per kilolitre to $5.15 per kilolitre.

The sewerage supply charge has also increased from $535.79 to $579.25 per year. This will add a total of around $22 to quarterly bills.

Current water prices in Canberra (1 July 2024 - 30 June 2025):

• Water supply charge: $224.98 per year
• Water usage Tier 1: $2.56 per kilolitre
• Water usage Tier 2: $5.15 per kilolitre
• Sewerage supply charge: $579.25 per year

Icon Water offers flexible payment options and support programs for customers facing financial difficulties. The company continues to invest in infrastructure upgrades to maintain high-quality water supply and efficient wastewater management across the ACT.

Average Water Bills: What Can You Expect?

For the newest billing cycle there has been an increase in all rates, meaning that average water bills will increase, even without any extra water being consumed at a property. 

Using an average of 200 kilolitres of water per year (which falls into Tier 1 only), households will notice an annual increase of $87 which is 6.8% from the 2023-2024 prices. 

The average water bill in Canberra will vary considerably from household to household. More people residing at the property, especially those with more than one bathroom, will see a bigger increase in average bills due to additional Tier 2 prices which can add an additional $1,000 to an annual bill.

For a typical two-person household with no more than two toilets, the annual water bill might look like this:

• Water supply and sewage: $804.23
• Water use (Tier 1, 200 kL): $512.00
• Annual Total: $1,316.23 
  • Quarterly Total $329.00

A four-person household using 400 kL annually may face higher costs:

• Water supply and sewage: $804.23
• Water use (Tier 1, 200 kL): $512.00
• Water use (Tier 2, 200 kL): $1030
• Annual Total: $2,346.23
  • Quarterly Total $586.55

Understanding Your Water Bill

Water bills in Canberra consist of several key components. The main elements include charges for water usage, water supply, and sewerage services.

Water usage fees are measured in kilolitres (kL) and are typically read from the property's water meter. To encourage water conservation, the cost per kilolitre varies, with higher rates often applied to larger volumes of water used.

The water supply charge is a fixed fee that covers the cost of maintaining and operating the water supply network. This charge is applied regardless of the amount of water used and helps fund infrastructure improvements and ongoing maintenance.

Sewerage supply charges cover the costs associated with collecting, treating, and disposing of wastewater. Like the water supply charge, this is a fixed fee that applies to all connected properties.

Bills may also include other items such as government levies or special charges for specific services. It's important to review each line item on the bill to understand the breakdown of costs.

Customers can also find additional information about their water usage patterns on their bill. This may include comparisons to previous billing periods or average consumption figures for similar households in the area.

Strategies To Reduce Your Water Costs

Some simple measures can help conserve water and lower household expenses.

A licensed plumber can help by providing and installing water-efficient fixtures. Replacing old shower heads with WELS 5-star rated models can save seven litres of water per minute. This simple swap could save a two-person household $160 yearly on energy and water costs.

Toilets offer another opportunity for savings. Upgrading to a 4.5/2.2 litre dual-flush toilet can conserve over 60,000 litres annually for a family of four. 

Washing machines and dishwashers with high WELS (water star) ratings use less water per cycle.  Choosing the eco cycle and running these appliances only when full, maximises their efficiency.

Small behavioural changes add up. Taking shorter showers, turning off taps while brushing teeth, and scraping dishes instead of rinsing before washing all contribute to lower water usage.

Outside the home, water-smart gardening practices help curb usage. Mulching garden beds, watering early morning or evening, and selecting drought-tolerant plants all play a role in reducing outdoor water needs.

Conclusion

Water bills in Canberra reflect the city's unique water management challenges. Residents face varying costs based on household size, water usage habits, and seasonal factors. The tiered pricing system encourages conservation, rewarding those who reduce consumption.

ACT residents can take practical steps to lower their bills. Installing water-efficient appliances, fixing leaks promptly, and adopting water-wise gardening practices can lead to significant savings. Regular meter checks help identify unusual spikes in usage.

Comparing bills with neighbours or regional averages provides useful context. However, individual circumstances differ, so direct comparisons may not always be meaningful.

Understanding Canberra's water pricing structure empowers residents to make informed decisions about their usage. By adopting water-saving measures and staying aware of consumption patterns, households can better manage their water bills while contributing to the city's water conservation efforts.