SA govt rejects claims on water pricing

An independent inquiry into water pricing in South Australia has been called for after a parliamentary committee heard the government is over inflating the value of water assets to earn $275 million a year.

The call by the state opposition was rejected by the government who rejected suggestions it was unfairly reaping millions from SA Water.

Opposition Leader Steven Marshall said it was quite clear SA Water was being used as a cash cow and South Australians were paying too much.

He said Adelaide consumers paid the highest capital city water prices in Australia. Prices had jumped by 236 per cent over the past 13 years.

Premier Jay Weatherill said most of what the government received was returned to consumers to keep country water prices down and to offer concessions to pensioners.

"It just doesn't stack up," Mr Weatherill said of the claims on Monday.

"We're not there to make a dramatic profit out of this system, although we're not there to make dramatic losses."