Water price review 2026

We are preparing to review the new prices to apply from 1 July 2026 for two Victorian water businesses, Melbourne Water and North East Water.

Overview

We are preparing to review submissions from Melbourne Water and North East Water on their proposed prices and key service outcomes to apply from 1 July 2026.

The two water businesses are due to submit their proposals by 1 October 2025.

The proposals will be assessed against a legal framework established by the Victorian Government and set out in the Water Industry Regulatory Order, and the commission’s PREMO pricing framework.

PREMO includes incentives for each water business to put forward its best offer to customers and deliver the outcomes its customers value most.

We released our guidance to Melbourne Water and North East Water in November 2024, which sets out the information each business will be required to provide us in its price submission. We also explain our approach and methodology to assessing water businesses' price submissions and making a price determination.

As this review is the second round under PREMO for both Melbourne Water and North East Water, we have introduced the backward-looking 'Performance' element of PREMO which holds businesses accountable for its price and service commitments from the previous price review. Melbourne Water’s and North East Water's price submissions will need to demonstrate how it is building on the previous proposals to deliver great value to its customers.

We will seek feedback from customers and stakeholders of the two water businesses at multiple points throughout the price review process to inform our decision-making process.

Our first consultation period on the businesses’ proposals will open on Engage Victoria on 2 October 2025 and will close on 1 December 2025.

Following consultation on our draft decision, we will issue a determination and final decision in June 2024 that sets the maximum prices that each water business may charge its customers from 1 July 2024.

How does this affect you?

Melbourne Water provides bulk water and sewerage services to metropolitan water businesses and some regional urban water businesses and provides waterways and drainage services to end-use residential and business customers in metropolitan Melbourne.

North East Water provides water and sewerage services to residential and business customers in north east Victoria.

Our determination impacts how much customers will pay for the services they receive from their water business, and the key service outcomes they can expect for the period from 1 July 2026.

What are we looking at?

We must assess the price submissions against a legal framework and issue a final determination that specifies the maximum prices and service levels for the two water businesses.