This means typical annual water and sewerage bills for residential owner occupier customers will increase 7.9 per cent – from $1,106 to $1,193 – 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 0.9 per cent per year, before inflation.
The final decision follows a detailed proposal by Wannon Water which was carefully scrutinised by the commission, and consultation with customers and the community on a draft decision released in April.
Under the approved pricing plan, Wannon Water will be required to achieve a slightly higher revenue requirement than the draft decision.
The commission’s director of pricing Marcus Crudden says the approved increase is largely due to Wannon Water’s increased investment in infrastructure needed for reliable services and quality drinking water.
Wannon Water recognises the impact the price change will have on customers, and has initiatives in place to support customers experiencing vulnerability, including improving access to its financial support programs, and building capability to ensure it has proactive hardship identification, communication and outreach.
“We encourage customers to contact Wannon 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 Wannon 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 27 April. Themes raised during the forum included the proposed new customer contributions, and the effect of proposed changes on tenants.
“Wannon Water proposed to set prices below an amount the commission would normally approve under its pricing approach, however, noting that Wannon Water’s approach is aimed at supporting affordability, and having regard to its forecast financial position, we have approved the proposed prices.”
Wannon Water has committed to a number of key outcomes over the five-year pricing period, reflecting customer priorities: continue to provide reliable water services; protection of the environment; enhance customer experience and support; offer a fair and reasonable price; improved water quality in identified areas; and active partnerships for healthy and resilient communities.
Wannon Water will invest $143 million in capital works over the next five years, including on major projects to protect the environment and respond to the business’s compliance obligations.
The Essential Services Commission thanks customers and stakeholders for their submissions and participation in the price review process, including with Wannon Water as it prepared its proposal.
