This means typical annual water and sewerage bills for residential owner occupier customers will increase 5.4 per cent – from $1,231 to $1,298 – from 1 July 2023.
For the remaining four years to 2028, typical annual water and sewerage prices for residential customers will increase by an average of 0.6 per cent per year, before inflation.
The final decision follows a detailed proposal by Central Highlands Water which was carefully scrutinised by the commission, and consultation with customers and the community on a draft decision released in April.
The commission’s director of pricing Marcus Crudden says Central Highlands Water has initiatives in place to support customers experiencing vulnerability, including plans to double its support funding for customers. It also responded to the commission’s draft decision by reducing its proposed price increase for the first year.
“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.
In Victoria, water businesses must provide payment assistance to households and small businesses. Customers who are experiencing difficulty with their water bills may be eligible for payment plans or assistance with applications for utility relief grants and other concessions.
The commission has accepted Central Highland Water’s revised new customer contributions proposal. 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.
Under the final decision, Central Highlands Water will increase its new customer contribution for connection to the water network, and introduce a new customer contribution for connection to the sewerage network. Developers can negotiate these charges with Central Highlands Water, and can access dispute resolution mechanisms if needed.
In approving the plan, the commission considered Central Highlands Water’s price submission, and its responses to queries and the draft decision; consultants’ reports; written submissions from interested parties; and the views of participants in the public forum held on 28 April.
“Central Highlands Water responded to our draft decision and requests for additional information, which allowed us to reach a decision on this matter,” Mr Crudden said.
“The commission acknowledges the strong interest in new customer contributions and intends to commence a review of the existing framework to ensure costs are fair and reasonable and administered in a transparent way.”
Central Highlands Water has committed to a number of key outcomes over the five-year pricing period, reflecting customer priorities: enhancing support for customers; providing equitable services across the region, and focusing on sustainable practices in response to a changing climate.
“Central Highlands Water will also invest in critical infrastructure, including $251 million 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,” Mr Crudden said.
The Essential Services Commission thanks customers and stakeholders for their submissions and participation in the price review process, including with Central Highlands Water as it prepared its proposal.
