New pricing framework delivers for water customers

The majority of Victorian households will benefit from flat or falling water prices after the state’s water regulator set rates for four of the state’s water businesses* for the next five years.

The Essential Services Commission has finalised its first decisions under a new pricing framework.

Commission chair Ron Ben-David says the new framework encouraged water businesses to work harder to deliver more for customers.

“The water businesses have stretched themselves to reduce costs and increase service levels at the same time.

“They have engaged with their communities in more meaningful ways to deliver real and tangible benefits including saving customers hundreds of millions of dollars over the next five years,” he said.

The commission has made final decisions for four water businesses covering more than 1.5 million households stretching from Lakes

Entrance in East Gippsland, south to Phillip Island and Doncaster in the city’s eastern suburbs.

The decisions for Yarra Valley Water, South East Water, East Gippsland Water and Westernport Water will see water prices remain steady or fall over the next five years. The estimated impact on average bills ranges from a $73 cut to an increase of $13 in 2018–19, not including inflation.

Typical residential owner occupier water bills (not including inflation)

(Calculations are in 2018–19 dollars and are based on average consumption for households in each region. 2017–18 bills include rebate paid to customers from a government efficiency review.)

*Prices for 13 more of the state’s water businesses are currently being considered with final decisions expected in June 2018.