Most of the money will come from an unusual accounting manoeuvre, that experts warned would weaken the water companies, and will reap the government more than $500 million in a three-year period out to 2024.
The companies paid the government a further $210 million in repatriated capital in the same year, and most have committed to collectively paying hundreds of millions more in the same way in the coming two years. “This isn’t the sort of decision-making of a steward focused on the operating position of a business, this is something that is going to constrain a business.”
“Every bit of money that goes out the door that’s not achieving those things is making that a bit harder.”The Essential Services Commission, which regulates prices after taking submissions, lifted bills by 1 per cent this year, well below the inflation rate. If that approach continued, that would further limit the water corporations’ ability to invest, O’Donnell said.
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