Do you know how much you’re paying for water every year? Do you know what components go into the cost of water and how their rates are calculated? If not, you could end up more than you expected. More importantly, not knowing what goes into the cost of water means you won’t know where to save money.
Luckily, we’re here to help, and we’ll now look at these aspects in more detail.
Water Cost Components
Icon Water, which is wholly owned by the Canberra Government, is the sole supplier of water in Canberra. As a result, they’re responsible for determining the costs of water. These costs consist of two separate components – supply and usage charges. When calculating these components, Icon Water takes into account all its operating costs including maintenance, pump running costs, wages, chemicals, taxes, and more.
In addition to these aspects, they’ll also consider things like climate change, population growth, infrastructure upgrade costs, and water quality standards when calculating the costs of water.
Average Water Costs
Now, based on everything taken into account when calculating the costs of water, what are the average water costs you can expect to pay? To calculate this average, we’ll look at Census data to determine the average usage per person.
Based on this data, most households in Canberra are two-person households and most families are couples without children. Moreover, 3-bedroom homes are most common, with 4+ and 2-bedroom homes following. Based on the Census data, it appears that the average water usage per person per year is about 100 kL.
Based on this, the average two-person household can expect to pay about $1,158 per year for their water bill. Likewise, a four-person household with two adults and two children can expect to pay about $2,075 per year for their water bill.
Both these amounts include a water supply and sewage charge of about $700 per year. Moreover, in respect of the four-person household, they’ll pay a Tier 2 water usage charge, which is charged for usage above 50 kL per quarter.
Tips for Reducing Your Bills
It’s important to keep in mind that the calculations mentioned above are based on averages. As such, you could, ultimately, end up paying more or less, depending on factors like the season, how many bathrooms you have, what appliances you use, and the size of your garden. Either way, you’ll appreciate that water can be quite expensive.
Fortunately, there are some things you can do to keep your water bill under control. For one, you can consciously focus on how much water you use and, by implication, use less. You can also:
- Use low flow taps and shower heads.
- Fix any leaks or dripping taps.
- Collect rainwater to water your garden or wash your car.
- Use water-efficient appliances.
- When using your dishwasher or washing machine, only run them when full.
Conclusion
There you go, now you know what goes into the cost of water, how the rates for water supply and usage are calculated, and how much you can expect to pay for water in Canberra. Crucially, you also now have some strategies you can implement to use less water and save money.
