This means typical annual water and sewerage bills for residential owner occupier customers will increase 9.6 per cent – from $1,154 to $1,265 – 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 3.2 per cent per year, before inflation.
The final decision follows a detailed proposal by South Gippsland 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 South Gippsland Water recognises the impact the price change will have on customers, and has initiatives in place to support customers experiencing vulnerability, including expanding eligibility for its customer support program, and introducing a co-payment scheme to help re-engage with customers with outstanding payments and help them reduce debt.
“We encourage customers to contact South Gippsland 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 South Gippsland 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. Issues raised during the forum included wastewater and treatment plants, the availability and use of different water supplies, and South Gippsland Water’s performance reporting.
“South Gippsland Water proposed to set prices below an amount the commission would normally approve under its pricing approach, however, noting that South Gippsland Water’s approach is aimed at supporting affordability, and having regard to its forecast financial position, we have approved the proposed prices,” Mr Crudden said.
South Gippsland Water will invest $136 million in capital works over the five-year pricing period, reflecting key outcomes that were informed by customer priorities gathered through broad engagement with customers and community groups.
These outcomes include continuing to provide reliable and safe drinking water and sewerage services; service communities in a socially responsible and environmentally sustainable manner; and will strive to balance affordability, value-for-money, and fairness. South Gippsland Water will also be targeting net zero emissions by 2035.
The Essential Services Commission thanks customers and stakeholders for their submissions and participation in the price review process, including with South Gippsland Water as it prepared its proposal.
