Local ratepayers could have to find an extra $200 a year to pay for water and sewerage access, after the region’s new water services entity last week unveiled vastly increased costings.

Unitywater, the business that will provide water services to around 670,000 people and 262,000 properties in the Moreton Bay and Sunshine Coast regions, officially took over water assets from the two councils today.

They bring with them new pricing structures for water and sewerage services that spell bad news for ratepayers.

While Sunshine Coast residents face an increase in their water charges of just 10 per cent, the average household in the former Pine Rivers Shire was facing a 27 per cent increase for annual water and sewerage fees, with yearly bills to rise from $1087 to $1384.

The news was worse for people living in the former Caboolture Shire who use town water, with the average household bill set to rise 34 per cent – or $352 a year.

Redcliffe ratepayers were the hardest hit by the new charges, with prices up 66 per cent.

That was until Moreton Bay Regional Council announced a subsidy to reduce water and sewerage access charges by 50 per cent.  It means annual savings of $119 (Pine Rivers), $147 (Caboolture) and $247 (Redcliffe) this financial year.

Unitywater CEO Jon Black defended the price hikes, saying the new charges reflected the true cost of providing water supply and sewerage services in the region.

He added the increased water charges were a burden brought upon by the Queensland Government.

“It is important to note that the bulk water, or wholesale charge, has increased by 21 per cent, and this price path is set by the State Government,” Mr Black said.

“The rising cost of bulk water, rising energy costs, and the cost of maintaining, improving or replacing existing water supply and sewerage infrastructure have had a significant effect.”

Mr Black added that Unitywater was “moving towards standardised pricing across the region” to ensure “fairer and more equitable services for customers”.

“This will take some time, and until we reach this goal, retail prices for water supply and sewerage services will differ across the region,” he said.

The new water costings for the Pine Rivers district follow an increase in base water charges of around 40 per cent in the 2009-10 Moreton Bay Council budget, which came after increases of $68 per year (water) and $21 (sewerage) the previous financial year.

Moreton Bay Region councillor Bob Millar (Division 11) declined to comment on whether ratepayers’ water needs would be better met by Council or by Unitywater, which was established under the State Government’s water reform measures.

Instead he noted that: “water is a finite resource and its cost of delivery is obviously significant”.

“I think there are costs that are now emerging as a consequence of a lot of the work that has taken place in south east Queensland over the last couple of years that now have to be paid for,” Cr Millar said.

“The significant increase in the cost of the provision of water, right from its source at the dams through to its delivery at the tap, are now contributing to the pricing that Unitywater has announced.”

Ratepayers Action Group Moreton Bay Region President Dennis Austen slammed the price hikes and the Unitywater board, chaired by former Brisbane Lord Mayor Jim Soorley.

“Unitywater is now filled to the brim with highly paid executives and we will be looking for satisfactory answers,” Mr Austen said.

“If we don’t get them, we’ll be organising public protest marches and demonstrations on the Council offices.”

Mr Austen said the Ratepayers Action Group, which has branches at Pine Rivers, Caboolture and Redcliffe, would hold protest meetings in their areas, with councillors and Unitywater executives invited to explain why Moreton Bay locals were “so heavily penalised with increased charges”.

Charges for commercial water supply and sewerage services around the region will also increase, by an average of five per cent.

Mr Black said Unitywater aimed to “keep changes and disruptions to our customers to a minimum”, with cost increases reflecting “rising electricity, fuel and other business costs”.

Mike Hocken from Samford Discount Water Deliveries said he was disappointed he had been “left in the dark” about the new water charges.

He said while there was “no doubt whatsoever” that water costs would rise, he said businesses were entitled to know about the new costs earlier, in order to set charges and budget for the coming financial year.

Unitywater has pledged to invest $679 million as part of a three-year capital works program, to create or augment existing water and sewerage infrastructure in the Moreton Bay and Sunshine Coast regions.

A Unitywater spokesperson said residents would start receiving their first quarterly bills, covering the three-month period from April to June, from the last week of July.

Water consumption charges will be at the pre-July price as set by Council’s former water services entity, Moreton Bay Water.