FAQs: Best practice water and sewer pricing

From July 2026, Armidale Regional Council will move to best‑practice water and sewer pricing. This means prices will be set in line with state guidelines to ensure water and sewer services are financially sustainable, fair, and efficient over the long term.

The change is being made to:

• Ensure essential services remain reliable and safe
• Provide funding for maintenance, renewals, and future upgrades
• Ensure customers pay a fair share based on service availability and usage
• Align Council with NSW best‑practice requirements
• Compliance helps supports grant applications and improves the chances of success

Without best‑practice pricing, Council will struggle to maintain infrastructure, leading to higher costs or service risks in the future.

Water and Sewer pricing structures and prices that comply with the NSW Strategic Planning and Pricing Guidelines for Water Utilities

Best‑practice pricing generally includes:

• A fixed availability charge for access to water and sewer services
• A stepped usage charge for water consumption
• Pricing that reflects the true cost of providing the service
• Transparent, consistent charges across customer groups

It does not change water quality or service standards.

There will be increases and decreases depending upon the connection size and usage. The impact will depend on:

• Whether the property is residential or non‑residential
• How much water is used
• The balance between fixed and usage charges

Council understands cost‑of‑living pressures and is committed to managing the transition to best practice carefully.

Fixed charges reflect the cost of:

• Building and maintaining pipes, treatment plants, and pump stations
• Ensuring water availability at all times
• Meeting regulatory and safety requirements

These costs exist regardless of how much water a customer uses.

No. Usage charges still apply and reward efficient water use. Access charges cover the availability of the service, not the volume used.

Both components are needed to fund the system fairly and sustainably.

Businesses may experience changes depending on:

• Connection size
• Demand on the system
• Water usage patterns

Best‑practice pricing improves transparency so businesses can clearly see what they are paying for and make informed decisions about water efficiency.

Council is required to demonstrate best‑practice pricing to meet state oversight and regulatory expectations. While councils set their own prices, aligning with best practice is essential to:

• Maintain compliance
• Access certain funding or approvals
• Meet long‑term financial sustainability requirements

Council will continue to:

• Apply state‑mandated pensioner concessions
• Offer payment plans and hardship assistance where needed

No ratepayer will have water services withdrawn simply because they are experiencing temporary financial difficulty.

Best‑practice pricing helps ensure:

• Safe, reliable water and sewer services
• Fewer emergency repairs and service disruptions
• Reduced risk of large price shocks in the future
• Infrastructure that can support growth and climate resilience

This approach protects both current and future residents.

Yes. This is because Council’s water and sewer services are required to be self-sufficient to pay for:

• Operating costs
• Infrastructure maintenance and renewal
• Long‑term planning for essential services

Note any surplus goes into a reserve to help cover the cost of larger infrastructure spends in future years.

Water and Sewer pricing are detailed in Council’s Revenue Policy, pages 19-22