Victorian water businesses deliver on promises to customers

Victorian water businesses generally delivered on their promises to customers, despite challenges caused by wetter than average weather and flooding, according to a new report.

The Essential Services Commission today released its fifth annual water outcomes report. The annual outcomes reporting provides both:

• an overview of the self-assessments undertaken by Victorian water businesses of their performance against their outcome commitments made to customers at their last price review.
• the commission’s high-level views on each business’s approach to its self-assessment and accountability for its performance.

Executive Director of Pricing and Regulation, Marcus Crudden, acknowledged a significant number of major project delays and deferrals, but said Victoria’s water businesses generally honoured their commitments to customers.

“Water businesses are generally performing well against their outcome commitments, despite some facing increased challenges associated with wetter than usual weather and flooding in 2022-23,” Mr Crudden said. “However, a third of major projects have been deferred or delayed.”

While the number of deferred and delayed projects is high, businesses generally provided sound reasons for these delays and deferrals.

“Businesses should explain changes to their project schedules to their customers, particularly given prices over the past five years included capital investment costs that have not necessarily been delivered.”

The outcomes report details the self-assessments of 17 water businesses against their outcome commitments made to customers. The commission generally agreed with the self-assessments made by businesses, and this reinforced the commission’s findings in the 2023 water price review.