Based on feedback we’ve received from the land development community, we are seeking further comment on the three options you have suggested we consider. As a cost recovery entity, our costs are borne by our customers and any additional inclusions for one customer must ultimately be recovered from others.
We have outlined three options for consideration regarding the Sewer NCC, can you please select the one that you prefer. At the bottom of the page you can vote for your preferred option.
We know that development is becoming more expensive for Coliban Water to service. There are very few developable lots in the valley between Big Hill and Epsom and growth outside this valley requires significant operating and capital costs to service. We will be significantly increasing our capital expenditure to a record $435 million over the 2023-2028 period.
All three options require an increase to sewer NCCs as our current NCC revenue does not currently recover our net growth costs. All three options allow for these higher fees to be phased in over time in accordance with developer feedback to date.
Under all options, a cost reflective pressure sewer NCC of approximately $15,000 will apply for each property that requires connection to a pumped sewer.
Under all options, we are proposing to discontinue the small town non-growth NCC rebate.
Coliban Water will consider all feedback related to these three options. We will be then presenting a preferred position to Board and our finalised Price Submission will be available by the end of September.
All fees are subject to approval by the Essential Services Commission.
It was proposed that we include an amount within
the water NCC to fund a share of water main link up costs to rectify legacy
issues that arise. Whilst the codes require these we do agree that a
sharing of costs should be included and therefore propose the following amended
water NCC’s in the table below. You can indicate your preference at the bottom of the page.
| Water | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 | 2027-28 |
| Base Case | $1,789 | $1,968 | $2,165 | $2,381 | $2,619 | $2,881 |
| Base Case plus link-ups | $1,789 | $2,147 | $2,361 | $2,598 | $2,857 | $3,143 |
Option 1: Base Case
This option is a continuation of our current approach where all assets required to service a development will be borne by that developer, including sewer pump stations. This will see NCCs increase by 10% per annum in real terms each year over the five year period. Shared pump stations are included within this NCC amount.
| Option 1: Base Case | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 | 2027-28 |
| Sewer NCC – all | $1,789 | $1,968 | $2,165 | $2,381 | $2,619 | $2,881 |
Option 2: Base Case plus Rebate
This option applies the same asset rules as our current approach. All assets required to service a development will be borne by that developer, including sewer pump stations. This will see NCCs increase by 20% per annum in real terms each year over the five year period. This rate of increase is higher than the Option 1 rate of increase because additional revenue is needed to offset the revenue reductions caused by some developers who will be receiving significant discounts on the standard fee. Shared pump stations are included within this NCC amount.
Under this option, any developer who needs to build a standalone sewer pump station for their development will continue to pay for that pump station when required. However, any developer in this situation will be eligible to receive discounted NCCs for lots that connect to that standalone pump station.
The maximum value of this discount will be $1,500 per lot. Coliban Water will only apply this maximum discount where a developer can demonstrate sufficiently to Coliban Water that their costs in building a standalone pump station exceed $1,500 per connected lot. If this is not the case, then a smaller discount will apply to lots serviced by that particular pump station and the NCC fee charged will be between the ordinary and the discounted fee.
Coliban Water will establish a policy and procedure regarding implementation of a discounted NCC.
In the table below, the “Sewer NCC – Ordinary” fee will apply to all lots where a developer doesn’t need to build a standalone pump station for their development. The “Sewer NCC – discounted (min)” fee will apply where the cost of privately paid standalone pump stations exceeds $1,500 per lot.
| Option 2: Base Case Plus Rebate | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 | 2027-28 |
| Sewer NCC – ordinary | $1,789 | $2,147 | $2,576 | $3,091 | $3,710 | $4,452 |
| Sewer NCC – discounted (min) | n/a | $647 | $1,076 | $1,591 | $2,210 | $2,952 |
Option 3: All in
This option applies the same asset rules as our current approach, except that all sewer pump stations required for development will be paid for by Coliban Water. This includes sewer pump stations required for a single development and sewer pump stations that service several developments (both standalone and shared pump stations).
If chosen, Coliban Water will investigate how to implement this process consistent with our procurement policies. We acknowledge that it is may be easier for a developer’s contractor to build sewer pump stations when they are already on site undertaking other works. We will implement a process to ensure we’re only paying for the fair and prudent costs of pump stations.
Option 3 sees a significant increase in NCCs from 2023-24 followed by annual increases of 15% per annum in real terms until 2027-28.
| Option 3: All in | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 | 2027-28 |
| Sewer NCC – all | $1,789 | $3,535 | $4,065 | $4,675 | $5,377 | $6,183 |
