Reduction in maximum interest rate payable on overdue water bills

The Essential Services Commission has lowered the maximum interest rate water businesses can charge customers who do not pay their bills on time from 6.2 per cent to 5.7 per cent per annum.

The commission sets the maximum interest rate to ensure charges for late payment remain fair and reflect the reasonable cost to water businesses of unpaid bills, without placing undue financial pressure on customers.

The decrease in the maximum interest rate for 2025-26 is the result of a fall in the debt risk premium, which is partially offset by a rise in the risk-free rate.

Under our customer code, water businesses must not charge a residential customer interest on outstanding amounts if the customer:

• holds an eligible concession card
• is on a payment plan
• receives assistance under a water business’s customer support policy.

The new maximum interest rate takes effect from 1 July 2025.