Water bills to rise below inflation for most Victorian households
30 June 2022
Water bills will rise over 2022–23, but increases will be below inflation for most Victorian residential customers.
The Essential Services Commission has confirmed the prices to apply from 1 July for the state’s 18 water businesses. Average bills for the year ahead for owner-occupier households will rise by $10 (one per cent) in Melbourne and $45 (four per cent) in regional Victoria.
The main reason for the increase is inflation, which is partly offset by lower borrowing costs for retailers. Increases in Melbourne are lower compared to regional areas, mainly due to reductions in bulk water charges and a smaller desalination water order for 2022–23.
Commission pricing director Marcus Crudden says water bills vary depending on factors including water usage, changes in borrowing costs, while rising inflation is pushing up input costs.
“Your average water bill goes up or down every year based on a number of factors including how much water you use, inflation, and how much your water business spends on maintaining infrastructure and services,” Mr Crudden said.
Meanwhile, the commission’s latest customer survey shows Victorian water customers continue to rate their water businesses relatively high on measures of value for money, reputation in the community, trust and overall satisfaction.
"It’s been encouraging to see water businesses providing more support to their customers over the past couple of years during the pandemic and in more recent times, through targeted payment assistance and proactive communication to check in with customers.
“This has been reflected in the improvement in customer perception about their water businesses over this period,” Mr Crudden said.
Water businesses across Victoria are currently preparing submissions, in consultation with their customers, on prices to apply from 1 July 2023. The commission will also engage with Victorian water customers after the price submissions are received in September 2022.
Indicative household bills – water and sewerage
Metro water - residential (owner occupier)
Based on average consumption of 150kL p.a. Averages and bill change amounts may not reconcile due to rounding.
Water business
Average consumption
(kL p.a.)
2021–22
annual bill
2022–23
annual bill
Change
Change (percentage)
Greater Western Water (former City West Water) area
150
$929
$947
+$18
1.9%
South East Water
150
$963
$967
+$4
0.4%
Yarra Valley Water
150
$1,026
$1,034
+$8
0.8%
Average bill change metro
$973
$983
$10
1%
Regional water – residential (owner occupier)
Based on average consumption rates for each water business. Averages and bill change amounts may not reconcile due to rounding.
