AN independent commission has recommended the state government jack up the price of its water bill to Redland City Council by an average 9.2 per cent every year for the next three years.
Water users in Redland City can expect to pay about $40 extra a year until 2019, if the Palaszczuk government adopts recommendations from the Queensland Competition Authority.
The authority handed down its final Seqwater Bulk Water Price Review last week, bumping up a recommendation for a $38 hike in a draft document in December to $40.
It also upheld its December recommendation to give Redland water users an extra two years to catch up and match the state-wide regulated common price for bulk water.
The report said by 2019, all council areas would pay $2.96 per kilolitre, up from $2.77/kL, the price the authority asked for in December before the state election.
In its final report, the authority recommended an average 9.31 per cent increase in the cost of bulk water every year for five years until 2019 for Redland households using 200kL of water.
Despite the recommended increases, Redland water users would still pay the lowest price for state water for the next three years, according to the report.
Queensland Competition Authority chairman Malcolm Roberts said price increases for Redland were necessary as the city was paying less for bulk water than other councils.
In 2006-2007, Redland council negotiated with the state for reduced water pricing for 10 years. The deal resulted in Redland residents paying the lowest water prices in the south east.
But the reduced pricing deal runs out in 2016-2017, and residents were facing a 31 per cent price hike in 2017 2017-18 as the city moved towards the common state price.
Under the QCA's price path, the maximum increase in Redlands over the next three years is 10.2 per cent, rather than 31 per cent.
Newly elected Water Minister Mark Bailey said he would review the report but had not decided whether to adopt the recommendations.
He said he was not sure whether a decision would be made before Redland City Council drew up its 2015-16 budget.
Redland City Council said it would not speculate on water prices or their effects until after Mr Bailey had set the prices and its budget was drafted.
