Regulator lowers maximum interest rate payable on overdue water bills

The Essential Services Commission has lowered the maximum interest rate water businesses can charge customers who do not pay their bills on time from 6.9 per cent to 6.2 per cent. 

As the state’s independent water regulator, each year the commission sets the maximum interest rate water businesses may charge customers on overdue bills.

Marcus Crudden, Director of Price Monitoring and Regulation at the commission, says the maximum interest rate on overdue water bills is an important consumer protection.

“Victoria’s water businesses have continued to support customers experiencing payment difficulty, with many businesses opting not to charge customers interest on overdue water bills.

“Under rules set by the commission, customers who hold an eligible concession card, are on a payment plan, or are receiving assistance under a water business’s customer support policy, cannot be charged interest on overdue water bills.

“The maximum interest rate we set each year provides an important protection for all customers, limiting any interest charges applied by businesses.”

The decrease in the maximum interest rate for 2024-25 is driven by a fall in the debt risk premium.

The new maximum interest rate takes effect from 1 July 2024.