Water rates 'may increase' for Melbourne residents

Residents in Melbourne, Australia, may have to pay higher rates for their water quality services in the future, it has been revealed.

A 48 to 60 per cent increase in bills has been proposed by the Essential Services Commission over the next four years. The suggestion has been put forward as a solution to fund a AU$5.1 billion (£2.463 billion) infrastructure improvement project.

The price hike, which the commission claims is less than that proposed last year by water retailers, would see Melbournians' water rates increase by AU$300 annually.

Chair of the commission Dr Ron Ben-David explained: "Melbourne's prolonged drought and ongoing water restrictions means that price rises for water and sewerage use are inevitable, to pay for major projects that help to secure the city's water supplies."

In January, water minister Tim Holding announced that Melbournians reduced their water usage by 500 litres in 2008 compared to 2007.