This means typical annual water and sewerage bills for residential owner occupier customers will increase 7.7 per cent – from $1,018 to $1,096 – 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. For most rural districts, prices will rise by less than inflation.
The final decision follows a detailed proposal by Lower Murray Water which was carefully scrutinised by the commission, and consultation with customers and the community on a draft decision released in March.
The commission’s director of pricing Marcus Crudden says Lower Murray Water has initiatives in place to support customers experiencing vulnerability.
“We encourage customers to contact Lower Murray 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.
In approving the plan, the commission considered Lower Murray 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 20 April.
Themes raised during the forum included the allocation of costs between urban and rural services, the alignment of cost increases with inflation, and Lower Murray Water’s approach to asset management.
“For the first time, Lower Murray Water’s rural services have been assessed under the commission’s PREMO framework. This means greater scrutiny of the business’ performance on issues of importance to its rural customers, which includes efficiency improvements, its approach to engagement, and how it allocates corporate costs.”
“We encourage Lower Murray Water to continue to engage with its rural committee and customers on how it delivers on its commitments to achieve efficiency gains in its rural operations,” Mr Crudden said.
Lower Murray Water has committed to a number of key outcomes over the five-year pricing period, and will report back to its customer committees.
“Lower Murray Water will also invest in systems and infrastructure to ensure the availability of water when required, including by taking into account population growth. This includes investing $43 million in capital works on its rural services, and $95 million in capital works on its urban services” Mr Crudden said.
The Essential Services Commission thanks customers and stakeholders for their submissions and participation in the price review process, including with Lower Murray Water as it prepared its proposal.
