URBAN water bills in Australia have risen by 10 per cent a year on average over the past three years, a new report shows.   

The hip-pocket hit has come as water industry profits have gone up and capital spending has dipped.   

A new report by the National Water Commission, released in Canberra, found the biggest price rises occurred in South Australia, Brisbane and the Yarra Valley of Victoria.

Only four small utilities - Riverina Water, Orange, Bunbury and Goldenfields in southwest NSW - reduced their bills in real terms from 2008/09 levels.

While the typical annual bill in cities of over 100,000 people rose from $756 in 2008/09 to $837 in 2009/10, households in smaller towns of 10,000 to 20,000 people now faced average bills of $976.

The report showed water utility profits had bounced back from the slump of 2007/09, but capital spending had dipped by $500 million over the year to 2009/10.


The commission used the report to argue for a new focus on water recycling, which it says has environmental benefits such as reducing the amount of nutrients being discharged into waterways.

Most major cities have set targets for recycling waste water, with Sydney reporting savings of 33 gigalitres a year of the 235 gigalitres saved across the nation.

The commission said while the issue of drinking recycled waste water was ``controversial'', advances in science and improved regulation had "created an environment in which those risks can be managed to a safety level equivalent to those of other supply sources''.

The main use to date for recycled water has been in agriculture (38 per cent) and commercial and industrial (25 per cent), while only two per cent is used in homes for gardens and toilet flushing.

But the commission said recycling water often came at a higher cost than other options.

When you privatise a public untility, transport etc, 3 things are guaranteed to happen.

1. Price increases to ensure profits go off shore
2. Employment decrease, more temporary workers etc
3. Higher renumeration and bonuses for the CEO for mainly implementing points 1 and 2 above

Why are you surprised?


Oh and I forgot one very important item - Generally safety standards drop and workplace accidents increase.

Australians struggle with household costs

THE rising cost of essentials such as health care, utilities and fuel means more households are struggling to keep on top of their bills, a financial survey says.

The cost of living has increased, on average, 7.5 per cent across the nation, more than double the official inflation rate of 2.7 per cent, financial group ING Direct says in its Financial Wellbeing Index for the first quarter of 2011.

"Governments need to realise households are under more pressure than official figures are showing," said ING Direct chief executive Don Koch.

"That pressure extends across the entire household budget from consistent costs like mortgage repayments to everyday essentials like food and fuel."

The report, released today, says median savings have declined from $9238 in the last quarter of 2010 to $7214 in the first three months of this year.

Home loans, savings accounts and more

One in three households are uncomfortable with their level of savings, and close to half have no investments outside the family home, the report said.

Queenslanders, who are still recovering from disastrous floods and cyclones, suffered the biggest hike in living costs - 8.3 per cent over the past year, compared to 6.3 per cent in NSW.

Also in NSW, eight out of 10 households say electricity and phone costs have become more expensive over the past six months. More than 80 per cent also say fuel and transport costs have risen.

In South Australia, 11 per cent of homes say they are finding it impossible to pay bills on time, while 44 per cent are uncomfortable with their ability to keep up with essential expenses.

Median savings in SA are just $2741 - well short of the national average.

"On a positive note, South Australians have the lowest credit card debt and lowest median mortgage balance in the country, which could potentially contribute to a healthier household balance sheet," Mr Koch said.

ING Direct's index was compiled from responses of 1033 households across the country.

The rather gloomy figures of the index contrasted sharply to another survey of consumer sentiment released on Sunday.

Financial researcher CoreData found Australians were more optimistic about their financial outlook as pressure eased on household bills.

Andrew Inwood, managing director of CoreData, said more people had a regular income and were saving or investing more money.

"Household finances have improved considerably since the end of 2010, with more Australians able to save and fewer just being able to make ends meet or are running into debt," Mr Inwood said.

CoreData's Investment Sentiment Index, a survey of 877 people, showed 49 per cent were able to save money, a jump from 42 per cent in the previous quarter.

It said SA and NSW were the most optimistic states about the next quarter's economic situation and, overall, fewer respondents were running into debt.

The reports come less than two weeks after the Reserve Bank of Australia (RBA) voted to keep interest rates unchanged for the fifth straight month, saying near-record highs for the dollar had helped to keep inflation in check.

Read more: http://www.news.com.au/money/australians-struggle-with-household-costs/story-fn84fgcm-1226040682945#ixzz1Jp0EviwU