Regulator releases consultation paper on new customer contributions for water connections
15 August 2024
The Essential Services Commission is seeking submissions from interested stakeholders about its review of new customer contributions, also known as developer charges, for water, sewerage and recycled water connections.
The review will cover new customer contributions levied by regional urban and metropolitan retail water businesses. These charges are a contribution towards the costs of works to provide new or expanded services to a property.
In recognition of the many interests in new customer contributions from a policy, industry, and customer and community perspective, the commission is providing substantial time to consult on key issues before confirming the approach to the guidance to be issued by the commission ahead of the 2028 water price review.
To support feedback, the commission has released a paper providing an overview of the legislative and regulatory framework applying to new customer contributions and our role, and a summary of key issues we would like to address, arising from our recently completed 2023 water price review.
The review does not apply to Melbourne Water because they operate under a different framework for new customer contributions. Melbourne Water’s upcoming price review in 2025-26 will provide an opportunity to address matters related to their new customer contributions.
