SA Water says bills must rise to ensure stability. 

SA Water has submitted a business proposal to the Essential Services Commission (ESCOSA) seeking approval for a 3.5 per cent increase in bills above inflation starting July next year. 

According to reports, this could result in a 6.1 per cent rise in combined water and waste bills.

That potential increase would amount to about $71 annually for Adelaide residents over the next four years. 

However, SA Water notes that the actual hikes are contingent on inflation, currently at 5.4 per cent for the 12 months to the September quarter.

SA Water's plan forecasts a decrease in inflation to 2.5 per cent by July, remaining at that level until 2028. 

In their submission to ESCOSA, SA Water says bill increases are necessary to uphold service standards and meet expenditure requirements. 

CEO David Ryan said there is a delicate balance between maintaining essential services and addressing affordability challenges faced by customers.

While commercial customers may face a $290 yearly increase from July 2024, average household and business prices increased by 4.8 per cent this financial year, below inflation rates.

Water Minister Susan Close says the state government has urged SA Water to limit operating expenditure to achieve a maximum annual bill increase of 3.5 per cent, excluding CPI. 

ESCOSA is set to release its draft determination in response to SA Water's plan next month, with final decisions on the plan and prices expected before the start of the next financial year on July 1.