EXPLANATORY STATEMENT
Christmas Island Act 1958
Utilities and Services Ordinance 1996
Determination of Fees for Water and Sewerage Services No.3 of 2011
Section 3 of the Utilities and Services Ordinance 1996 (the Ordinance) authorises the Administrator to make provision for the supply and use of utilities and services in relation to, amongst other things, water and drainage and sewerage in the Territory. Section 4 of the Ordinance provides that the Administrator is to impose a fee for the provision to a person, or the use by a person, of such utilities and services.
The Determination of Fees for Water and Sewerage Services No.3 of 2011 (the Determination) sets the fees for water and wastewater charges on Christmas Island and replaces the Determination of Fees for Water and Sewerage Services No.1of 2010.
It is government policy that wherever possible there should be parity between the prices charged in the Territory and those charged in Western Australia. Broadly speaking fees and charges for water and sewerage services are calculated based on whether the property is residential (which is further defined as a private dwelling house, home unit, or flat and includes any yard, garden or outhouse), non-residential, government, exempt (ie Charitable, religious) or vacant land.
COMPARISON OF RATES BETWEEN CI AND COUNTRY WA
Classification | Service | Christmas Island | Country WA |
Residential | Water | Fixed $186.60 per residential unit | Fixed $186.60 per residential unit |
Sewer | Fixed $293.50 per residential unit | ‘Rate in $’ x GRV. Min $293.50, Max $731.40 | |
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Vacant land | Water | Fixed $186.60 per lot | Fixed $186.60 per lot |
Sewer | Fixed $193.20 per lot | ‘Rate in $’ x GRV. Min $193.20, Max $731.40 if land is for residential development, otherwise no max applies | |
Non-residential (incl Govt) | Water | Based on meter size | Based on meter size |
Sewer | Non-res $658.50 Govt $983.60 | First fixture $658.50 Second fixture $281.80 Third Fixture $376.40 Four and over (each) $409.30
(Fixture charges are cumulative) | |
Sewer volume | Not applied | Water use X discharge factor (percentage returned to sewer) minus allowance (200 kL standard) X $2.42 per kL | |
Exempt (local govt purpose, charitable, religious) | Water | Nil charge | Nil charge |
Sewer | Vacant $193.20 (There is no exempt V/L category. V/L would be charged $193.20) Institutional/Public Charitable $176.90 | $176.90 first MF, $77.80 per MF thereafter |
Cost Recovery
In WA, fees and charges for water and sewerage services are set annually and aim for full cost recovery. Full cost recovery includes the cost of operations and maintenance, cost of depreciation plus a return on asset. However in recognition of some high cost, small customer base schemes, only partial cost recovery occurs.
IOT OPERATING COST and REVENUE
2009/10 | Production Cost ($) | Revenue ($) | % Cost Recovery | Shortfall ($) |
Christmas Is |
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- Water | 1,120,873.05 | 1,452,284.52 | 129.6 | (331,409.47)* |
- Wastewater | 1,138,406.78 | 311,904.65 | 27.4 | 826,502.13 |
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Note: * Due to the high volume of water consumed by the IDC
Schedule 1 Fixed Charge for Water
Residential - Water
There is no change in annual water service charge.
Non-residential – water
Fixed charges for Commercial, Industrial and Government properties have been reduced by 23.7% in line with WA reforms to standardise service charges to 20mm residential equivalent units.
Schedule 2 – Fixed Charges for Sewerage
Residential - Wastewater
Previously properties attracted a fixed charge for sewerage services. The Determination changes the way sewerage charges are calculated and brings Christmas Island properties into line with WA. An annual service charge will be applied to all properties based on the property’s Gross Rental Value (GRV), which is supplied by the Valuer General. The fixed charge for sewerage is calculated by multiplying the GRV by a ‘rate in the dollar’ and is subject to a minimum and maximum charge.
A ‘rate in the dollar’ is calculated by estimating the cost to operate the scheme and includes such things as estimated operating costs, depreciation on assets and return on assets. For high ‘rate in the dollar’ schemes the rate is capped at 12 cents and Water Corporation calculates that Christmas Island scheme is a high ‘rate in the dollar’ scheme.
The Determination caps the ‘rate in the dollar’ at the maximum charge of 12 cents in the dollar and introduces a minimum and maximum charge again, in line with WA standards.
Non-residential – wastewater
In the past Christmas Island non-residential properties have been levied a fixed charge for sewerage. The Determination brings Christmas Island non-residential charges into line with mainland charges which are based on the number of major fixtures at each property. (e.g. number of toilets).
Schedule 3 – Quantity Charges
In line with 2008 WA Government reforms customers are encouraged to save water and quantity charges will continue to be adjusted to reflect the real cost of the cost of providing water in country areas.
Residential
Water consumption is calculated from regular meter readings and then multiplied by a charge per kilolitre according to the ‘class’ appropriate to the area. A ‘class’ of water use charge (1 to 5) applies to different towns across Western Australia depending on the total cost to the Water Corporation of providing water from the local scheme.
To encourage the careful use of water, the charges are structured so that the price per kilolitre increases as more water is used. Each year Water Corporation reviews these costs and allocates a town or scheme to a ‘class’. Where the costs change significantly, the town or scheme is moved up or down a class progressively until it reaches the appropriate class.
Christmas residential properties have been moved from Class 4 to Class 5 - Water use price north of the 26th parallel and the Determination reflects these changes to the cents per kilolitre charged.
Non-residential
In WA each scheme is classified according to the cost to operate the scheme. Towns are then classified and customers charged water consumption according to Band 1-15 Non-residential water consumption rates. To encourage the careful use of water, charges within each band or class are structured so that the price per kilolitre increases the more water is used.
Due to the cost to operate the scheme Christmas Island non-residential properties have been reclassified from Band 9 to Band 10 Non-residential water rates and these increases are reflected in the Determination.
A quantity charge for sewer volume discharge applies throughout WA and encourages customers to look at ways to minimise discharge to sewer (e.g. water efficient appliances, dual flush toilets, low flow shower roses and taps, etc.). This charge has not been applied to Christmas properties in the past and the Determination introduces the new ‘discharge to sewer’ fee for ‘Commercial or Industrial’ and ‘Government’ properties only.
Water Corporation has prepared a Summary of Sewerage Charges table which estimates the average cost increases for residential and non-residential properties based on maximum sewer service rate over a number of target years. The results are an average across that property type but the effect on individual properties may vary markedly. The results for Non-residential properties include an amount for the new Volume Sewer Charge for water returned to the sewer.
TABLE: SUMMARY OF COMBINED SEWERAGE CHARGES
Target (Years) | Rate in Dollar x GRV | CI –Res Av $ Increase | CKI – Res Av $ Increase | CI – Non Res Av $ Increase | CKI – Non Res Av $ Increase |
1 | $0.0386 (current) | 139.64 75.5% | 16.32 2.9% |
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1 | $0.12 (max) | 406.99 152% | 161.98 29% | 10,165.57 1533.9% | 1,556.26 134.6% |
2 | $0.12 (max) | 214.04 60.5% | 90.36 14.8% | 5,220.10 101.2% | 808.55 36.1% |
3 | $0.12 (max) | 149.74 38.1% | 66.49 10.5% | 3,571.60 43.7 | 559.29 20.7% |
4 | $0.12 (max) | 117.78 28.2% | 54.74 8.4% | 2,750.01 27.8% | 435.27 14.81% |
5 | $0.12 (max) | 98.77 22.6% | 47.82 7.2% | 2,259.15 20.7% | 361.31 11.8% |
It has been Water Corporation’s experience that it is better to introduce changes over a small time frame and to reach target levels quickly while lessening the impact on customers and so this Determination reflects increases to fees for water and sewerage services that will meet target in 3 years except for Government properties which will have increases implemented in a single year.
A note explaining the changes will be included with the next round of invoices to be sent to customers.
The fees set in the Determination are working towards those rates and charges that apply in Western Australia and these charges are considerably less than the cost of supply. Accordingly, consultation on the fees was not undertaken.
The Determination commences on 1 July 2011.
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The rates of increase in the various fees from the previous year are described below:
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| 2009/10 | 2010/11 |
| 2011/12 | Percent Increase | |
| SCHEDULE 1 – FIXED CHARGES FOR WATER |
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1 | Residential | $200.40 | $186.60 |
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| $186.60 | 0.0% |
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2 | Commercial, or Industrial, Mining, Shipping and Government |
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| 15 or 20mm meter or un-metered (minimum) | $463.80 | $365.90 |
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| $279.00 | -23.7% |
| 25mm | $724.80 | $571.70 |
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| $435.90 | -23.8% |
| 40mm | $1,855.00 | $1,463.50 |
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| $1,116.00 | -23.7% |
| 50mm | $2,899.00 | $2,286.70 |
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| $1,743.70 | -23.7% |
| 80mm | $7,422.00 | $5,853.90 |
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| $4,463.90 | -23.7% |
| 100mm | $11,596.00 | $9,146.70 |
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| $6,974.90 | -23.7% |
| 150mm | $26,091.00 | $20,580.1 |
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| $15,693.40 | -23.7% |
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3 | Institutional/Public, Charitable purposes or Local Government | Nil | Nil |
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| Nil |
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4 | Vacant land | $200.40 | $186.60 |
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| $186.60 | 0.0% |
5 | Fire service | $200.40 | $186.60 |
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| $186.60 | 0.0% |
6 | Strata titled Commercial or Industrial property sharing a water service |
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| $186.60 |
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| Note - Additional connections will be charged at the same rates as above |
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| SCHEDULE 2 – FIXED CHARGES FOR SEWERAGE |
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1 | Residential | $287.50 | $293.50 |
| Cents per $ of GRV | $0.12 |
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| Increase in GRV based charges is limited to one third of the difference between 2010/11 and 2011/12 charges |
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| Minimum charge | $302.30 |
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| Maximum charge | $753.30 |
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2 | Commercial, Industrial or Mining | $633.40 | $658.50 |
| First MF | $690.50 |
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| Increase in GRV based charges is limited to one third of the difference between 2010/11 and 2011/12 charges |
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| Second MF | $295.60 |
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| Third MF | $394.80 |
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| Subsequent MF | $429.20 |
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| Minimum charge | $690.50 |
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3 | Vacant Land | $189.20 | $193.20 |
| Cents per $ of GRV | $0.12 |
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| Increase in GRV based charges is limited to one third of the difference between2010/11 and 2011/12 charges |
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| Minimum charge | $199.00 |
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| Maximum charge (only for future residential use) | $753.30 |
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4 | Institutional/Public, Charitable Purposes or Local Government | $170.20 | $176.90 |
| First MF | $185.50 | 4.9% |
| Increase in GRV based charges is limited to one third of the difference between 2010/11 and 2011/12 charges |
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| Subsequent MF | $81.60 |
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5 | Government | $945.75 | $983.60 |
| First MF | $690.50 |
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| No limitation on increase between 2010/11 and 2011/12 charges |
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| Second MF | $295.60 |
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| Third MF | $394.80 |
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| Subsequent MF | $429.20 |
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6 | Strata titled Commercial / Industrial sharing a major fixture |
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| $429.20 |
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| SCHEDULE 3 – QUANTITY CHARGES |
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1 | Residential or Vacant Land held for residential purposes | cents/kL | cents/kL |
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| cents/kL |
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| 0 – 150kL | 72.6 | 98.2 |
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| 119.2 | 21.4% |
| 151 - 350kL | 88.0 | 108.7 |
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| 124.3 | 14.4% |
| 351 - 500kL | 88.0 | 123.7 |
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| 153.5 | 24.1% |
| 501 - 550kL | 124.7 | 180.5 |
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| 278.2 | 54.1% |
| 551 - 650kL | 133.1 | 186.2 |
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| 281.2 | 51.0% |
| 651 - 750kL | 186.4 | 222.5 |
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| 303.4 | 36.4% |
| 751 - 1150kL | 325.8 | 365.1 |
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| 535.3 | 46.6% |
| 1151 - 1550kL | 524.5 | 500.3 |
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| 636.3 | 27.2% |
| 1551 - 1950kL | 589.5 | 544.6 |
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| 659.2 | 21.0% |
| Over 1950kL | 654.4 | 588.8 |
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| 678.2 | 15.2% |
2 | Commercial, Industrial, Mining, Shipping or Vacant land not mentioned in item 1. |
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| 0 – 300kL | 255.5 | 282.1 |
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| 334.5 | 18.6% |
| over 300kL | 349.4 | 356.7 |
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| 400.1 | 12.2% |
3 | Commercial/Residential |
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| 0 – 150 kL |
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| 119.2 |
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| 151 – 450 kL |
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| 334.5 |
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| Over 450 kL |
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| 400.1 |
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4 | Government Commonwealth |
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| 0-300 kL |
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| 334.5 |
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| Over 300 kL |
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| 400.1 |
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5 | Institutional Public (non-government schools, churches, community facilities etc), Charitable purposes or Local Government |
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| 0 – 300kL | 119.7 | 134.7 |
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| 153.0 | 13.6% |
| over 300kL | 176.8 | 180.5 |
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| 185.9 | 3.0% |
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6 | Commercial or Industrial discharge to sewer |
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| 0-200kL per property (allowance) |
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| Nil |
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| Over 200kL |
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| 84.6 |
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7 | Government discharge to sewer |
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| 0-200kL per property (allowance) |
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| Nil |
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| Over 200kL |
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| 253.8 |
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| SCHEDULE 4 – BUILDING APPLICATION FEES |
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1 | Building plans to construct a new residential building or alter an existing residential building (charge is for each residential unit). | $106.00 | $108.25 |
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| $111.50 | 3.0% |
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2 | Minor building fee for approval of an outbuilding to a single residential property, includes pools, garages and pergolas (in sewered areas only). | $31.00 | $31.65 |
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| $32.60 | 3.0% |
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3 | Building plans for multi-residential units. Per unit | $106.00 | $108.25 |
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| $111.50 | 3.0% |
4 | Building plans for other than residential and multi-residential units (construct new building/alter existing building) at a cost of — |
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| Up to $22,500 (sewered area only) | $25.00 | $25.00 |
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| $25.00 | 0.0% |
| Over $22,500 but not over $200,000 | $85.00 | $85.00 |
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| $85.00 | 0.0% |
| $200,001 but not over $500,000 | $330.00 | $330.00 |
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| $330.00 | 0.0% |
| $500,001 but not over $1,000,000 | $550.00 | $550.00 |
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| $550.00 | 0.0% |
| And where the cost exceeds $1,000,000 — |
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| First $10,000,000 | $0.90 per $’000 | $0.90 per $’000 |
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| $0.90 per $’000 | 0.0% |
| Over $10,000,000 | $9,000 plus $0.25 per $’000 | $9,000 plus $0.25 per $’000 |
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| $9,000 plus $0.25 per $’000 | 0.0% |
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| SCHEDULE 5 – OTHER FEES |
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1 | Relocation of service | Actual/ quoted cost | Actual/ quoted cost |
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| Actual/ quoted cost |
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2 | Water service disconnection or reconnection | Actual/ quoted cost | Actual/ quoted cost |
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| Actual/ quoted cost |
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3 | Special meter readings for change of ownership/tenancy - |
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| Within 7 days | $14.30 | $14.60 |
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| $15.05 | 3.1% |
| Within 2 days | $48.10 | $49.10 |
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| $50.55 | 3.0% |
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4 | Advice of Sale Requests — |
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| Electronic advice – standard | $37.95 | $38.75 |
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| $39.90 | 3.0% |
| Electronic advice – urgent | $71.65 | $73.15 |
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| $75.35 | 3.0% |
| Manual advice – standard | $65.20 | $66.55 |
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| $68.55 | 3.0% |
| Manual advice – urgent | $98.55 | $100.60 |
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| $103.60 | 3.0% |
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5 | Meter Tests - |
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| 20mm to 25mm meters | $91.50 | $93.50 |
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| $96.50 | 3.2% |
| Over 25mm meters | Actual/ quoted cost | Actual/ quoted cost |
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6 | Restoration of service after restriction between 7:00am and 4:00pm any day except Saturday, Sunday and Public Holidays | $123.00 | $134.00 |
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| $138.00 | 3.0% |
Any Other time | $195.00 | $212.40 |
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| $219.00 | 3.1% | |
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7 | Sewer Connection Charge | Actual/ quoted cost | Actual/ quoted cost |
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| Actual/ quoted cost |
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8 | Installation of Sewer Junction | Actual/ quoted cost | Actual/ quoted cost |
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| Actual/ quoted cost |
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9 | Discount | $1.50 | $1.50 |
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| $1.50 |
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10 | Discount Interest Rate | 2.46% | 3.91% |
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| 4.10% |
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11 | Instalment Charge | $1.50 | $1.50 |
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| $3.00 |
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12 | Instalment Charge Interest Rate | 3.46% | 4.91% |
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| 5.10% |
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| SCHEDULE 6 – HEADWORKS CONTRIBUTIONS |
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| Headworks contributions will be payable for building developments, subdivisional developments and upgrading of existing water and wastewater services in accordance with the current charges as adopted by the Water Corporation of Western Australia. Details of these existing contributions will be provided on request. |
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