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❓ Mr. Johnston inquires about a sensitivity analysis on water tariffs similar to one done for Synergy. The Treasurer confirms the analysis and provides figures on the potential impact of consistent 4.5% tariff increases.

AnsweredQoN 5629Legislative Assembly

Asked

30 June 2016

Member

Mr W.J. Johnston

Portfolio

Treasurer

QuestionView source ↗

I refer to the Statement of Risks in Budget Paper Number 3, Spending Risks, and specifically to the section on page 68 and 69 headed "Utilities and Tariffs", and I ask: (a) the commentary on page 70 refers to Synergy, tariffs, has a similar sensitivity analysis been completed for Water tariffs; and (b) if yes, what is that sensititivity analysis?

AnswerView source ↗

Answered

16 August 2016

Response time

47 days

(a) Yes. The Department of Treasury, in consultation with the Water Corporation, has completed a similar sensitivity analysis for water tariffs. (b) If water tariff increases were to remain at levels similar to the approved 2016-17 increase (that is, 4.5% in each year over the forward estimates period), the general government sector net operating balance (all else being equal) would deteriorate by an estimated $24.7 million in 2017-18, $53.1 million in 2018-19 and $18.7 million in 2019-20, and total public sector net debt would increase by around $102.9 million over the forward estimates period.

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