Central Coast Council water and wastewater bills will rise by 5.5 per cent in 2026-27 under a one-year determination by the Independent Pricing and Regulatory Tribunal.
IPART has set the maximum prices Central Coast Council can charge for water and wastewater services from 1 July 2026 to 30 June 2027.
A typical household receiving water and wastewater services and using 170 kilolitres of water a year will pay $1,565 in 2026-27. That is an increase of $82, or 5.5 per cent, including inflation. IPART said the increase is equivalent to 1.3 per cent plus inflation.
Bill impacts will depend on household type and water use.
Why is this a one-year determination?
Central Coast Council said it accepts IPART’s determination, but is disappointed that it covers only one year. The Council had been seeking a multi-year determination after more than 18 months of detailed work.
IPART said it had planned to issue a multi-year determination, but changed course after considering submissions to its draft report.
IPART Chair Carmel Donnelly said one submission raised concerns about the independence of advice IPART received from an expert service provider about efficient Council costs.
“One submission raised concerns about the independence of the advice IPART received from an expert service provider about the costs the Council should incur to efficiently deliver its services,” Donnelly said. “As a precaution to maintain confidence in the integrity of IPART’s decisions, the Tribunal decided not to rely further on this advice due to a commercial relationship between the provider and the Council.”
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What happens next?
IPART said it does not suggest that the advice was biased or that the conduct of the service provider or the council was. It will commission an independent assessment of concerns regarding the independence of the consultants involved in the pricing review.
IPART said the one-year determination allows the Council to keep pace with broader economic factors, including inflation and the cost of capital. It also gives IPART an interim period to seek further separate expert advice on efficient expenditure.
The tribunal will begin its next review immediately to set prices from 1 July 2027. That process will include a draft report, a draft determination, a public hearing, and a final report.
What does Council say about customer certainty?
Central Coast Council said the shift from a multi-year to a one-year determination reduces certainty for the community.
The Council said a clear and timely determination gives customers a more stable transition in pricing over time.
It also said delays may result in less consistent pricing outcomes in future years.
Central Coast Council Chief Executive Officer David Farmer said the determination will mean less revenue for the Council’s water and sewer business over the next year.
He said the Council can cover any deficit by using reserves.
“Council has a multi-million dollar planned works program focused on both upgrading and building new water and sewer infrastructure on the Central Coast to ensure reliability and sustainability for the community,” Farmer said. “We intend to continue with this commitment to community and are confident that through the sound financial management of Council, it can be delivered.”
What issues will IPART review?
IPART said it will further consider issues raised through submissions to its draft report.
Donnelly said those matters include customer affordability, IPART’s methodology regarding any taxation allowance and updated information in the Council’s submission.
The next review will also use submissions and survey responses already received.
IPART said people who have already made a submission will not need to resubmit, although further feedback will be sought and welcomed during the new review.
The one-year determination also removes the current stormwater drainage charge, consistent with legislative changes.
