Regulator releases final 5-year pricing decisions for 14 Victorian water businesses
23 June 2023
The Essential Services Commission has completed its review of pricing proposals from 14 of Victoria’s water businesses for the next five years.
As a result of the price review, prices will increase for most Victorian residential customers – but, for most, these will be below inflation.
Typical household water and sewerage bills from 1 July for owner-occupier households will rise on average by around $22 (or 2 per cent) in metropolitan Melbourne, and around $74 (or 6.5 per cent) in regional Victoria.
The largest price rises will be experienced by customers of South Gippsland Water, Coliban Water, and East Gippsland Water, while customers of South East Water and Yarra Valley Water will see increases slightly over $20.
Meanwhile, GWMWater customers will see a small decrease in typical bills, even with the inclusion of inflation.
The approved price changes for Victoria’s metropolitan water businesses are:
Typical bill*
In 2022-23
(current)
Typical bill*
from 1 July
$ change
from 1 July
% change
South East Water
$967
$990
$23
2.3%
Yarra Valley Water
$1,028
$1,049
$21
2.1%
* Typical residential owner occupier water bills are based on the average consumption for households in that region.
The approved price changes for Victoria’s regional water businesses are:
Typical bill*
In 2022-23
(current)
Typical bill*
from 1 July
$ change
from 1 July
% change
Barwon Water
$1,076
$1,141
$65
6.1%
Central Highlands Water
$1,231
$1,298
$67
5.4%
Coliban Water
$1,367
$1,477
$109
8.0%
East Gippsland Water
$1,238
$1,331
$93
7.5%
Gippsland Water
$1,363
$1,414
$51
3.7%
Goulburn Valley Water
$890
$958
$68
7.7%
GWM Water
$1,404
$1,396
- $7
- 0.5%
Lower Murray Water
$1,018
$1,096
$78
7.7%
South Gippsland Water
$1,154
$1,265
$111
9.6%
Wannon Water
$1,106
$1,193
$88
7.9%
Westernport Water
$1,227
$1,317
$90
7.3%
* Typical residential owner occupier water bills are based on the average consumption for households in that region.
The commission has also approved rural water prices, with price rises for the majority of Southern Rural Water customers to increase by inflation in 2023-24. Most customers of Lower Murray Water’s rural networks will see prices rises below inflation next year.
The commission’s final decisions follow detailed proposals by each of the water businesses, which were carefully scrutinised by the commission; and consultation with customers and the community on a draft decision, including through public forums and submissions.
The commission’s director of pricing Marcus Crudden said Victorian water businesses recognise the impact price changes have on customers, and almost all have introduced and invested in initiatives to better support customers experiencing vulnerability.
“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.
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 payment plans or assistance with applications for utility relief grants and helping customers take up concessions, and tips on how to reduce your water usage.”
Mr Crudden said each of the water businesses put forward proposals which considered the needs of their individual service regions, as well as targeting outcomes that reflect their customer priorities – in particular, managing affordability, service delivery, water security, and local environmental concerns.
“There is significant infrastructure investment planned across the businesses, with more than $6.5 billion in capital investment in infrastructure, including around $2.7 billion in regional Victoria,” Mr Crudden said.
“There are some challenges facing the water sector in terms of rising construction costs and increasing interest rates, and it is important that water businesses respond to these challenges by seeking to improve their efficiency across the five-year pricing period.”
“All water businesses are investing to manage climate risks and to transition to 100 per cent renewable energy by 2025.”
The Essential Services Commission thanks customers and stakeholders for their submissions and participation in the price review process.
“We have seen improved customer engagement by water businesses in preparing their pricing processes, including more diverse voices and greater use of deliberative processes and customer panels,” Mr Crudden said.
The commission has announced a review of the new customer contributions framework in 2023-24 to ensure costs are fair and reasonable and administered in a transparent way. New customer contributions (or developer charges) are levied by water businesses when a new connection is made to its water, sewerage or recycled water networks.
