SA WATER is paying almost 200 employees more than $100,000 a year as its wages bill balloons to $110 million.

As consumers struggle to pay their surging water bills, SA Water's annual report shows that in the space of a year, the number of employees on salary packages worth more than $127,000 has jumped by 50 per cent, from 98 to 150.

There also has been a 30 per cent increase in the use of consultants at the utility, with more than $30 million spent on external experts - an increase of $7.5 million.

More than 400 of SA Water's 1567 employees earn more than $82,000 a year, with 189 earning more than $103,000, and 26 earning more than $200,000 a year. Eight have salary packages topping $300,000 - more than the Premier's $270,000 salary.

In the same period, SA Water recorded a profit of $258 million and returned a dividend to the Government of $169 million - but customer satisfaction fell. SA Water wages bill soars

In June, the Government announced a 50 per cent increase in the base water rate, and a 60 per cent increase in supply charge, sparking concern among welfare groups about the impact on consumers.

Opposition frontbencher Iain Evans said the Government should ask SA Water to examine its cost base to make efficiencies in the same way as the broader public service was being targeted for savings.

"You would think that the Government would be questioning SA Water and its expenditure," he said.

"The people who pay for these people are ultimately the taxpayers, through exorbitant water prices."

But Water Minister Paul Caica said the Government was unable to direct how SA Water was managed under the rules of its corporatisation, which occurred under the last Liberal government.

"The State Government no longer has direct responsibility for the day-to-day running of SA Water including setting wages and conditions," he said. "However, it is essential that SA Water is able attract and retain the best employees to deliver reliable and secure water services."

Mr Caica said the complexity of some major projects the State Government had commissioned through SA Water required short-term expertise.

"The State Government is confident we have a board in place to continue to ensure that SA Water operates as efficiently as it can and only passes on prices to consumers that are absolutely necessary and in line with the National Water Initiative."

An SA Water spokesman said salary packages had increased as a result of general market conditions.

"SA Water faces strong competition from the mining industry and other private enterprises to attract and retain employees," he said. "Given this competition, we need to make sure that we are competitive with other industries."

The spokesman said complex projects such as the Metropolitan Adelaide Service Delivery Project, the Desalination Project and the Christies Beach Wastewater Treatment Plant upgrade, had required specialist external help.

"Given that these types of projects have set time frames, it makes greater economic sense to bring in specialist help on a contract basis, when required, rather than hire and train additional staff," he said.

SA Council of Social Services executive director Ross Womersley said there needed to be greater accountability for customers to know price hikes were justified. "I would have thought that they would be looking to be as slim as they possibly could be in an effort to present the best possible image of their efficiency and effectiveness," he said.

"It would be prudent for SA Water to be very cautious about the numbers of people perceived to be earning very high salaries particularly relative to both the general public sector and the general population at a time when most people are struggling in the face of major increases in their water prices," he said.