The state’s independent pricing regulator has rejected key aspects of the pricing proposals submitted by Western Water to apply from 1 July 2020.
The Essential Services Commission’s draft decision on Western Water’s pricing from July 2020 until June 2023 found that the water business did not sufficiently justify proposals contained in its price submission submitted in November 2019.
Western Water must now resubmit its proposed prices in response to the commission’s draft decision.
The commission’s director of pricing Marcus Crudden said Western Water’s submission failed to comply with requirements set out in the Water Industry Regulatory Order, and guidance provided by the commission.
“The price submission was not of a quality that we expect and included errors and inconsistencies that made it difficult to assess,” he said.
“We have not accepted many of the business’s proposals, including those relating to tariffs, forecasts for demand and expenditure forecasts, and proposed prices.”
Western Water will need to resubmit its price submission by 30 April, addressing issues raised in the draft decision, and propose a new set of prices.
Western Water services an area west of Melbourne that includes Bacchus Marsh, Sunbury, Macedon and Lancefield.
A community forum is planned to be held on Thursday 24 April in Sunbury. Customers can find details and have their say on the draft decision at Engage Victoria. Submissions close 30 April.
Feedback received will inform our final determination on prices, to be released in June.