Regulator approves 2025–26 water prices for Victorian water businesses
01 July 2025
The Essential Services Commission has confirmed the maximum prices Victoria’s 18 water businesses can charge their customers for specific services in 2025–2026.
The average annual water bill for owner-occupier households will increase by around $32 in Melbourne and by around $33 in regional Victoria (compared to 2024–25).
Water bills vary depending on factors such as water usage, changes in borrowing costs and inflation. Inflation (2.4%) is the main driver for the increase in 2025–26 owner-occupier bills.
South Gippsland Water customers will see the greatest increase in their average bill, of around $80 per year for a typical annual water bill. Barwon Water customers will see the least increase in annual bills at around $12 per year.
South East Water has the lowest typical annual water bill in Melbourne ($1,057) and Goulburn Valley Water has the lowest in Victoria ($1,027).
Melbourne Water’s waterways and drainage charges will increase for residential properties by $3 to $125.
The commission also approved the recovery of costs associated with the 50 GL desalinated water order via a pass-through to metropolitan Melbourne customers. As a result, Melbourne metropolitan customers will have an extra charge of around $12 to be applied in 2025–26.
The Essential Services Commission releases approved tariff schedules for Victorian water businesses every year following a review of their respective pricing proposals. The schedules outline the maximum prices each water business can charge their customers for specific services.
Victorians can estimate their annual water bills (based on usage) by using the commission’s Water Bill Calculator.
The new maximum tariffs will take effect from 1 July 2025.
Quotes attributable to Gerard Brody, Chairperson, Essential Services Commission.
“We encourage Victorians to reach out to their water business if they are having trouble paying their bills. They must help you manage your bills, providing a range of options, such as flexible payment plans and assistance with concessions or grant applications.” “Our Water Bill Calculator is a useful tool to estimate what your water bill will look like in 2025–26.”
