Draft framework for new customer contributions to water infrastructure

New customer contributions, also known as developer charges, are one-off charges levied by water businesses on a property owner applying to connect to water infrastructure or applying to receive increased services.

New customer contributions establish how much a connecting party pays upfront, and what will be paid through ongoing charges by the connecting party and all other customers. As part of a review into the new customer contributions framework, we have released a draft framework paper for consultation.

The objectives of the framework are to:

• send signals to developers about the costs of developing in different locations
• share the costs and benefits of growth between new and existing customers
• administer customer contributions for new developments in a transparent way. 

The draft framework has been informed by: 

• our observations from the 2023 and 2024 price reviews
• feedback on issues papers
• consultation with interested parties
• workshops and surveys with the water businesses and developers. 

During our consultation, we heard that most parties wanted to maintain the existing principles-based new customer contribution framework and the flexibility it provides, but also heard that additional guidance might assist people new to the water sector. 

The draft framework paper introduces new measures to improve transparency, consistency and accountability in the implementation of new customer contributions, while also providing more guidance to help water businesses implement new customer contributions that comply with the regulatory framework.

Feedback on this report is welcome until 11 November 2025 and can be made via Engage Victoria.