Regulator releases draft decision on Central Highlands Water’s proposed five-year pricing plan – customers to have their say ahead of final decision

The Essential Services Commission has released its draft decision on Central Highlands Water’s proposed five-year pricing plan for consultation, ahead of a final decision to be issued in June.

Under the proposed plan, Central Highlands Water’s typical annual water and sewerage bills for customers will remain flat in real terms in 2023‑24, and then rise by one per cent per year above inflation in the following four years to 30 June 2028.

This means the average bill for households will remain at around $1,231 in 2023-24, then rise by around $10 each year to $1,281 in 2027-28, before inflation.

The commission’s director of pricing Marcus Crudden says Central Highlands Water has recognised the impact these proposed price increases will have on customers, and plans to double its funding allocated to support customers experiencing vulnerability.

“We encourage customers to contact Central Highlands Water if they are experiencing difficulty paying bills, to discuss what assistance or arrangements can be made,” Mr Crudden said.

Central Highlands Water has committed to a number of key outcomes, reflecting customer priorities over the five-year pricing period: enhancing support for customers; providing equitable services across the region, and focusing on sustainable practices in response to a changing climate.

It will invest in critical infrastructure to support reliable services across the region, and has proposed six major projects to support regional growth and development, protect the environment, and provide reliable services.

The commission has requested additional information in relation to proposed new customer contributions charges, ahead of making its final decision.

“Our draft decision finds that Central Highlands Water has not sufficiently made the case to justify its proposed increases to new customer contributions,” Mr Crudden said.

The commission invites customers and stakeholders to have their say on the draft decision. A public forum will be held on 28 April 2023; details will be published on the Engage Victoria website. Written comments and submissions can also be lodged on the Engage Victoria website until 12 May 2023.

“The Essential Services Commission thanks customers and stakeholders for their submissions and participation to date. We value and encourage feedback on this next stage to help inform our final decision on Central Highlands Water’s 2023-28 pricing proposal,” Mr Crudden said.

The commission’s final decision on the Central Highlands Water pricing proposal is due in June 2023.

This article was updated on 12 April to correct the closing date for submissions to 12 May 2023 (previously stated as 9 May 2023).