Kim Waters
Local pensioners fear a water rates hike of around 10 per cent will tip their finances over the edge.
Looming price hikes around the state have prompted Victorian Council of Social Service to plead for removal of a cap on water concessions.
Victorian Council of Social Service chief executive Cath Smith said the rates hike from July 1 would hit hardest a category of single aged pensioners who owned their own homes.
“Unless the cap on the water concession is removed in the May budget, some of Victoria’s most vulnerable households, like single aged pensioners, will be hit with alarming increases in the price of water,” Ms Smith said.
A Highton Senior Citizens spokesperson said some pensioners would have to “tighten their belts considerably” to meet the new payments.
“This is a fair increase to expect us to cope with,” the spokesperson said.
“Our bills are expensive enough even though we can’t use that much water because of restrictions.
“Water is a necessity, so we have no choice but to pay the bills, although I really don’t know how people will cope.”
Belmont Senior Citizens secretary Frank Cahn said pensioners and retirees would “just have to cop it”.
“Rises in utility costs are a fact of life and we just have to get on with it but there will be a lot of people out there doing it tough,” Mr Cahn said.
“Everyone will have to make adjustments to their income and tighten their belts.
Mr Cahn feared utility costs would “just keep rising”.
Barwon Water’s Joe Adamski said rates would rise another seven per cent plus the CPI rate of inflation from July 1.
Barwon Water had yet to determine the CPI addition but Australian inflation is currently running around three per cent.
Barwon Water increased prices 11.1 per cent in 2008 and 2009.
Mr Adamski said concessions for pensioners, health care and DVA gold card-holders had risen from $150 in 2005/2006 to $216 this financial year.
Barwon Water also had a hardship policy to help customers experiencing difficulty paying their bills, he said.
“A range of options are available, including payment by instalment and one-off grants.”
Barwon Water plans two more price rises of seven per cent plus CPI in 2010/2011 and 2011/2012.
Mr Adamski said water rates would rise further after the completion of a pipeline linking Geelong and Melbourne.
“The amount will be determined once the pipeline is completed and operational,” he said.