Developer charges are applicable when Southern Water is required to install, alter or utilise assets to provide water and/or sewerage services to a new development. This includes the costs of the system capacity which will be augmented or consumed by the development – in the case of the Myer development, a demand equivalent to more than 120 households.
If developer charges were not levied the costs of providing services to new developments would fall on our entire customer base, which is not appropriate as works covered by developer charges are specific to the Myer development.
Southern Water does not disclose specific details relating to developer charges, but can confirm that a reported charge of $700,000 for a water connection is incorrect. Further, the development application for the Myer site is not being held up by Southern Water, with the applicable charges being included in the original development approval and discussions recently being held in order to reach a commercial agreement.
Southern Water