Regulator releases annual tariff approvals for four Victorian water businesses

The Essential Services Commission has released its annual tariff approvals for four of Victoria’s water businesses for 2023–24, which came into effect on 1 July.

Greater Western Water, North East Water, Melbourne Water, and Goulburn-Murray Water each undertook detailed price reviews in previous years, and were not included in the commission’s price decisions announced in June.

For Greater Western Water – which covers parts of metropolitan Melbourne and western surrounds – typical household water and sewerage bills will generally increase in line with inflation.

Meanwhile, typical bills for customers of North East Water, which services Wodonga and surrounding towns in Victoria’s north east, will increase by slightly more than inflation.

* Typical residential owner occupier water bills are based on the average consumption for households in that region. 

The commission also approved rural water prices for Goulburn-Murray Water, the state’s largest provider of rural water services. Prices for the majority of gravity irrigation customers and for bulk entitlement holders will increase by 5.6 per cent, which is less than inflation in 2023–24.

Melbourne Water’s bulk water prices that it charges metropolitan water retailers and some regional urban businesses, have also been approved for the coming year, and will increase by about 3.5 per cent before inflation. Melbourne Water’s approved tariff changes are already accounted for in the 2023–24 price changes announced for relevant individual water retailers in June.

The commission also approved Melbourne Water’s waterways and drainage charges, which will increase by inflation. For residential properties prices will increase by $9 to $118; for non-residential properties by $12 to $178.   

“In 2023–24, water prices will generally increase – but, for most customers across Victoria it will be below inflation,” the commission’s director of pricing, Marcus Crudden, said.

“In addition to inflation, there are a range of factors driving these price increases, including changes in borrowing costs over the past year.”

“We encourage customers to contact their water business if they are experiencing difficulty paying bills, to discuss what assistance or arrangements can be made.”

Mr Crudden said there are strong protections in place for Victorian water customers.

“In Victoria, water businesses must provide payment assistance to households and small businesses. If you’re having trouble keeping up with your water bills, contact your water business and ask for help. This might include offering you payment plans or assistance with applications for utility relief grants and helping you access concessions, and tips on how to reduce your water usage.” 

The commission has also approved the maximum annual interest rate water businesses may charge customers on unpaid bills.

In 2023–24, the maximum interest rate water businesses may charge on overdue amounts will increase to 6.9 per cent, from 5.3 per cent in 2022–23. Customers with eligible concession cards, or who are receiving payment assistance from their water business, may be exempt from interest payments.