Water cutbacks hit 40 households a week

THE screws are being tightened on Victorians struggling or refusing to pay water bills, with more than 40 households a week facing supply restrictions.

Companies slapped 2125 homes and 40 businesses with water supply cutbacks last financial year - up 16 per cent on the previous year.

Hundreds of pensioners and other concession card holders were among those hit with the harsh treatment, an Essential Services Commission report released today reveals.

The action comes as Victorians brace for big water price rises from July to pay for major projects to fight the drought.

Families are also juggling a tide of higher energy, home loan, petrol and grocery costs.

The ESC report shows most customers put on a water supply squeeze are based in the country.

A flow-restriction device is placed in a mains pipe to reduce water to "a bit more than a trickle". Health guidelines prevent a full cut-off.

ESC chairman Greg Wilson conceded there were concerns over the handling of some customers failing to pay bills.

''The levels of restrictions on customers for non-payment of bills remain uncomfortably high, particularly in regional Victoria,'' Mr Wilson said.

The report also confirms water use has dropped dramatically amid restrictions on watering gardens and washing cars.

Average household water consumption in 2006-07 fell more than 11 per cent, from 204 kilolitres to 180 kilolitres (kL) per household.

Regional Victorians used an average 207kl compared with 171kL for Melburnians.

City West Water customers paid an average $449 a year, South East Water $453 and Yarra Valley Water $488.

In rural Victoria, South Gippsland Water bills averaged $727, Western Water $713, and Grampians Wimmera Mallee Water $693.

The ESC will investigate whether companies are breaking an industry code designed to show compassion to people suffering financial hardship.

"There is a difference between those who can't pay and those who won't pay," spokesman Gavin Clancy said.

Under the code, companies should give a warning and final notice about lack of payment, and refer struggling customers to government agencies for assistance.

The report found 438 customers put on reduced water supply for not paying bills were on a concession. And all but 124 lived in the country.

Goulburn Valley had the highest restriction rate, with 1.37 in 100 households affected.

GVW managing director Laurie Gleeson said the figures were inflated because they included about 250 customers sent a warning letter when they transferred to another company.

But he defended the right to restrict supply.

"We have the statutory power to do this. And it is the cheapest option for everyone to get a debt paid because there are no legal costs and it brings it to a head very quickly,'' Mr Gleeson said.

"If people are having trouble paying the onus is on them to tell us.''

Water bills will soar for at least the next five years to pay for billions of dollars in planned water initiatives, including a $3 billion desalination plant at Wongthaggi and the $1.8 billion north-south pipeline.

From July 1, water and sewerage bills across Melbourne will rise 14.8 per cent, $70 a year extra for the average household.

Country residents face bill increases of up to 100 per cent over the next five years if a new price plan is approved.

Herald Sun 28 Apr 2008.

Every single elected government has failed to supply an adequate infrastructure for water supply to the ever growing population. Whilst we can blame the drought, that is not an excuse, as Australia always had a drought, in just about every decade. Every single Government hopes it does not have to spend on the infrastructure.

At the end of the day people are being punished for the inadequacies of the governments.