Barwon Water will save $26 million over the next five years without sacking a single worker, according to managing director Tracey Slatter.
The authority would maintain its 315 full time equivalent workers by saving through “more efficient and less costly” internal business practices, she said.
“Our strong discipline of saving $26 million in our operating costs over the next five years will… keep our bills stable and low.”
Part of the saving came from establishing maintenance services subsidiary Barwon Asset Solutions, Ms Slatter said.
The subsidiary provided services a Perth-based company previously delivered “retaining funds within Barwon Water rather than profit margins leaving the region”, she explained.
Improving asset efficiency and moving to “lower cost energy options” like solar contributed to the savings, Ms Slatter said.
Barwon Water had also increased online correspondence and billing saving money on paper and postage, she added.
Essential Services Commission recently approved Barwon Water’s prices for the next five years, which will see no bill increases in 2018/2019 except inflation.
“(Prices over) the next five years are the direct result of extensive engagement with our customers over the past 18 months,” Ms Slatter said.
Barwon Water would continue to invest in programs “important” to customers, like helping people in hardship, saving water and using more recycled water and renewable energy, Ms Slatter said.
“We are tripling financial support for customers in hardship, with an extra $500,000 each year.”
Ms Slatter said over the past five years Barwon Water’s prices had reduced 7.6 per cent excluding inflation.
By 2023, the average bill for a residential owner-occupier will be $1,038 which is $163 less than $1,201 in 2013, she said.
Residential water bills will increase by an average of $13 in addition to inflation by 2022/2023, Ms Slatter said.
Non-residential bills will remain stable for a year before reducing by four per cent on average over the remaining four years excluding inflation, she said.
“Nationally, we are in the lowest 10 per cent for major water corporation bills and this next price period should see this continue.”
Barwon Water would increase the variable component of water charges while reducing the fixed component to encourage customers to save more water, Ms Slatter said.
The authority would provide a transition credit to minimise the impact on tenants, who only pay the water volume charge, she said.
Barwon Water will spend $328.6 million on infrastructure over the five years.
The authority would spend $15.4 million switching to 43 per cent renewable electricity by 2022/2023 following “strong” community feedback for climate change action, Ms Slatter said.
