Typical house to pay 100 kronor more per month

An increase in residential water rates is proposed for the coming fiscal year. The increase is approximately 100 kronor per month for an average house. This was approved by the municipality's planning and building committee at its meeting earlier this week.




Skellefteå kommun2023-10-18 09:19

The proposed water rate increase will occur for two consecutive years, with the possibility of further increases in the following years in Skellefteå municipality.

The main reason for this increase is the rise in interest rates, which means that the municipality needs to increase its internal interest rate. As the municipality's water company owns all the underground pipes and waterworks, the asset values are high. The total value of all assets is 1.3 billion kronor, and interest must be paid on this amount.

Previously, the internal interest rate was 1.25 percent, but it has now been increased to 2.25 percent, costing an additional 16 million kronor per year.

Another reason for the increase is that operating costs have risen in several areas, including electricity costs, chemicals, material costs for pipes, and consulting and contracting costs for repairs and maintenance.

With the increased rate, the division's revenue will increase from the current 200 million kronor per year to 234 million kronor per year.

The increase is equivalent to approximately 100 kronor per month for an average house or typical-sized apartment. Both consumption charges and fixed charges will be increased.

The water department has researched the fees charged by other municipalities. Currently, the average residential customer pays about 7,000 kronor per year, while in Luleå, Piteå and Umeå the fees range from 8,200 kronor to 10,200 kronor.

The proposal will now go to the city council for a decision.