How your account is calculated

To make the change in the billing and payment system  transparent, the Treasurer decided that for the first three years the new water corporations would use the same methods to charge for water and sewerage as those previously used by each local council with a capped increase.

The calculation methods fall into two main categories: charges based on the value of your property and charges based on how much water you use.

Charges based on the value of your property

Many councils calculated charges for water and sewerage based on the value of each property using the Assessed Annual Value (AAV) system. This is a common method used by councils throughout Australia to set rates and other charges, including charges for water and sewerage.

The AAV is a property value set by the State Government’s Valuer General to represent the possible rental value per year. Each Council considered its budget to set an appropriate ‘rate in the dollar’ to calculate the fees and charges.

If your council account was calculated using the AAV method, your Southern Water account will be based on your council charges in 2008/2009.

Charges based on how much water is used

Two-part pricing is when a set amount is charged for fixed costs and a separate rate is set for the amount of water used (variable charges).

Fixed charges were set in a number of different ways and were generally included in the Council rates notice.

Variable charges were applied for each litre of water used or for excess water used over an allocated amount. These charges were generally sent out in a separate account showing how much was used.

If your account is calculated using two-part pricing you will receive an account for your fixed charges and a a separate account from Southern Water for your variable charges.

Fees and charges

All tariffs, fees and charges have been calculated using the same method as applied previously by the respective council and have been adjusted in line with the regulated customer cap increase approved for each municipal area.

To view Southern Water's fees and charges please click below: