High Consumption Charges Explained

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To help people manage the cost of building a non-residential development in the Bega Valley Shire, we offer businesses and developers an option to channel payment of the Section 64 developer contribution through High Consumption (HC) water and sewer charges.

This boils down to paying a higher rate per kilolitre if you use more than your quarterly high consumption charge threshold.

If your water and sewerage system use is under the threshold, there are no additional charges in your quarterly bill. If your water and sewerage system use exceed the threshold, the following additional charges apply:

  • $2.23 extra per kL extra for water  
  • $3.38 extra per kL extra for sewer  

If you regularly exceed the threshold, you can buy additional entitlements at the current Section 64 developer contribution rate. This will raise your quarterly HC threshold.

Any additional charges will be billed separately and payable quarterly.

Questions and Answers

How do you work out the non-residential High Consumption Charge?

The non-residential High Consumption Charge is calculated annually by repaying the Section 64 developer charges for water and sewer (presently $9,149 and $12,808 respectively) over 30 years with a discount rate equal to the 30-year Treasury bond rate (currently 3 per cent variable) and then divided by 205kL/y for water and 190kL/y for sewer. The figure of 205kL/y is the average annual water consumption per household (1 ET), and the 190kL/y is the average annual contribution to the sewerage system per household (1 ET).

 

What is Equivalent Tenement

Equivalent Tenement (ET) is the upper limit of water or sewerage system usage before high consumption charges are applied. Put simply, the upper limit of ET represents the threshold at which high consumption charges come into effect.

 

Can I apply to pay S64 charges in lieu for my residential development?

No, this option is only available for non-residential developments.

Can I apply to pay S64 charges in lieu for my subdivisional development?

No, this option is only available for non-subdivisional developments.

How do I purchase additional entitlements, and how much will it cost?

You can apply for a Water Management Act Certificate of Compliance and request to purchase additional ETs. The price for one ET is in ourfees and charges documentand in 2020/21 is $9,149 for water and $12,808 for sewer.

 


For general rate information visit Water supply and Sewerage service charges

 

 

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