Our current approach to assessing financial viability in Victoria’s water industry was established during the first water price review. Since commencing this role, we have met the financial viability objectives set out in the Essential Services Commission Act 2001 (ESC Act) and the principles in the Water Industry Regulatory Order (WIRO). We are undertaking this review to test whether we need to make any changes for future price reviews given that economic, financial and industry conditions have changed since commencing our price determination role.
The objective of this review is to ensure the approach we adopt to assessing the financial viability of the water businesses best positions us to meet our obligations to the requirements under the ESC Act and the WIRO. It is in the long term interests of customers that a water business is financially viable so that it can provide services desired by customers. We are seeking feedback from all interested parties on our approach.