The State Government says water prices will be cut by an average of 3.4 per cent, with sewerage prices to fall by an average of 13.7 per cent.

“This is welcome news to South Australian families balancing their household budget and managing cost-of-living pressures,” Treasurer Tom Koutsantonis said on Monday.

The cheaper prices reflect the final determination from the regulator, the Essential Services Commission of SA.

The government said the cuts in 2016/17 highlighted its commitment to affordable pricing for the state’s most valuable resource.

“We know many people are struggling with their household bills and this reduction is part of our commitment to lower the cost of living for South Australians,” Water Minister Ian Hunter said.

Opposition Leader Steven Marshall said the price cuts provided long-overdue relief for consumers but came after the government had gouged hundreds of millions of dollars through higher prices during the past decade.

“The government has levied a hidden water tax on every South Australian water user at enormous cost to household budgets and jobs growth in South Australia,” Marshall said.

AAP