Qld water minister calls on major water retailer to abandon price hikes

Water bills for households in several south east Queensland councils are expected to rise by 3.7 per cent next year after major water provider Urban Utilities announced a price hike. Bulk water charges were frozen for the next financial year in this week's budget but the change to Urban Utilities' charge is expected to jump by 5.5 per cent. What's next? Water Minister Ann Leahy has called on Urban Utilities to abandon the price hike and said the government will examine "legislative options" to force them to do so. Bills for one of South East Queensland's biggest water retailers will go up by a greater amount next year than this year, despite the state's freeze on bulk water charges. The move has been slammed by Water Minister Ann Leahy, who has called on Urban Utilities to abandon their price hike. She has also warned the government could look at law changes to force them to bring down their prices if they did not freeze them. Urban Utilities has announced a typical household water and sewerage bill will increase by 3.7 per cent next financial year, which equates to an extra $61 for the year. This coming year's hike is slightly bigger than the 3.6 per cent increase Urban Utilities implemented last year, despite the government freezing bulk water charges. The freeze was one of the signature cost of living measures unveiled by the government in Tuesday's budget — which it said it would save the average household $130 over two years. While the bulk water charge component of the bill is frozen for 2026-27, the change to Urban Utilities' charge on the bill is expected to increase by 5.5 per cent. This would bring the overall expected increase on an average bill to 3.7 per cent. The water retailer describes a typical residential customer as someone using 150kL of water per year. In a statement, Ms Leahy took aim at Urban Utilities. "This move to increase Urban Utilities' rates by 5.5 per cent is unacceptable after we did our bit to freeze bulk water prices," she said. "Urban Utilities need to walk back their price hike and freeze prices for customers. "If they don't freeze prices, we will examine legislative options to force them to." Earlier in the day, Urban Utilities chief executive Paul Arnold said the retailer would invest $422 million in essential infrastructure over the 2026-27 financial year. "We're planning well ahead to ensure we can deliver the services needed to protect the lifestyle we love here in South East Queensland for generations to come," he said. "We know the rising cost of living is putting pressure on household budgets, and we take that seriously. "That's why our communities are at the heart of every decision we make — what we invest in and when, how we prioritise our responsive jobs and how we set our prices." Urban Utilities covers the Brisbane, Ipswich, Lockyer Valley, Scenic Rim, and Somerset council areas. The ABC has requested a response from Urban Utilities about Ms Leahy's statement.