Urban Utilities- Pricing, Process, and Service Update Reminder

As first advised in March 2023 - Urban Utilities will be introducing customer pricing updates and changes to payments and procedures in the new financial year. We recommend a precautionary approach to planning your development projects, so customers can be ready for the commencement of these changes.

We will notify you on the specifics of these changes once all details are confirmed.

Work is progressing on major Developer Services Portal enhancements. Changes will align with the anticipated digital Stage 2.1 release in July 2023.

The following operational and quality assurance changes will be introduced in the new financial year:

• Indexation of Infrastructure Charge Notice (ICN) – cumulative indexation will apply to ICN payments based on the quarterly Producer Price Index (PPI) to reflect current values.

• ​Changes to ICN payment scheduling – Infrastructure Charges will be required to be paid at network connection (Network Access Permit stage), before a connection certificate is issued or an uncompleted works bond is granted. 

• Changes to meter information requirements – Information related to water meters for lots pertaining to a Water Approval will be required at the point of network connection (Network Access Permit stage), before a connection certificate is issued or an uncompleted works bond is granted.

• Developer Customer Price List update – Service fees will reflect indexation, current market and supplier rates with a focus on lowest cost to serve.

• Infrastructure Charge Rates update – There will be an annual update to infrastructure charges only used for new development dependent trunk infrastructure. These already subsidised charges are informed by local and state government.

Frequently Asked Questions  

We’ve developed responses to the questions you’ve asked following our initial notification in March.

Q: When will the new prices be applied to applications and will they be applied retrospectively?
A: New prices will only apply to new applications and requests lodged on or after the new price introduction date and will not apply retrospectively.

Q: What date will the changes come into effect?
A: There are several factors that are being finalised before a date can be confirmed. These include:

• Stage 2 Developer Services Portal digital system upgrades
• Pricing and supplier confirmations
• Local and State government informed rate releases.

More specific communications will be forthcoming, a minimum of two weeks from commencement, and will specify the exact date changes will be in effect.  

Q: How long are charge notices valid?
A: There is no change to charge notice validity. These are valid for 30 business days from the date a charge notice is issued. Payments made after 30 business days from the date of issue will be subject to the rates effective at that time.

Q: What information will be available to customers when applying for a Network Access Permit in FY24?
A: Urban Utilities is still developing specific guidance material and digital systems to enable customers to efficiently apply for a Network Access Permit in the new financial year. No new process or information will be introduced without customer-testing of the proposed approach and advance notice will be given to all customers.

Q: How lawful is it to charge infrastructure charges at Network Access Permit stage?
A: According to the South-East Queensland Water (Distribution and Retail Restructuring) Act 2009 infrastructure charges are payable when a connection is made. Urban Utilities first grants connection via a Network Access Permit for most applications.

To date infrastructure charges, levied for trunk infrastructure, have been sought after physical connection at the end of the Water Approval process. This is not an issue for Reconfiguration of a Lot development as the Queensland Titles Office will not authorise Plan Sealing until there is proof of Water Approval compliance. However, for Material Change of Use development, a Certificate of Occupancy can be granted for “substantially completed building” under the Building Act 1975, based on plumbing only, but Water Approval compliance certification may be outstanding, unsafe and water unlawfully used.  All FY24 changes will be legislatively compliant when introduced.

Q: Will the Network Access Form be updated?
A: Digital system and process upgrades will in future allow customers to apply for a Network Access Permit, calculate infrastructure charges and submit other related information using our online Developer Services Portal in real time. We will be phasing out forms and will provide more detailed guidance closer to the date of change, so customers have the information required in advance of changes coming into effect.

Q: What options are available to help reduce the time between infrastructure charge payments and return on development investment?
A: Customers are encouraged to have complete and correct applications to achieve Water Approval compliance as soon as possible. Applications are assessed in the order they are received. Provide as much context and demonstrate risk mitigations in application submissions and demonstrate consideration of all alternatives where code compliance is identified as not possible.

To best manage cashflow it may be best to defer Network Access Permit requests for service isolations i.e. when infrastructure charges will be payable, to the later stage of infrastructure construction but still allowing contingency time should network isolations prove challenging. 

For multi-stage developments, considering servicing sequencing and infrastructure deliverable dependencies, is critical and it may be advantageous to structure and sequence water approval applications so that network connections occur later during the construction phase and close to the post-construction water approval compliance phase.

Our team is available to provide general guidance, or more specific advice can be requested by a Services Advice Notice, to assist in determining Water Approval sequencing before lodgement.

For further information or advice contact Developer Services on 07 3432 2200 or DevelopmentEnquiries@urbanutilities.com.au.