ICON Water is seeking a rate rise of 6.5 per cent per year for the period of July 1, 2023 to June 30, 2028.

In comparison, the Independent Competition and Regulatory Commision’s draft decision would see a 4.2 per cent increase per year for typical households, and non-residential prices would see a 3.3 to 5.4 per cent increase per year.

Icon Water managing director Ray Hezkial said Icon Water’s capital proposal reflects replacing ageing assets, and meeting Canberra’s population growth.

“Over the next five years, Canberra has a critical window to upgrade wastewater facilities largely built in the 1960s and 1970s,” said Hezkial.

“If we delay investment now it will reduce prices slightly over the next five years, but it will be more costly in the long run, and it means future generations will have to pay higher prices.”

“Higher inflation and other operational cost pressures continue to impact prices and are driving a significant portion of the increase in water and wastewater prices.”

“In addition to responding to major factors influencing our operating environment, we must work proactively to plan for our ageing infrastructure, the challenges of climate change, a growing ACT population, and changing government policy.”

The Commission will now review submissions before setting water prices that will apply from July 1.