Outcomes reporting considers the performance of Victoria’s water businesses against their own commitments to customers.
Water business outcomes reporting
What is outcomes reporting?
Outcomes reporting considers the performance of Victoria’s water businesses against their own commitments to customers, established as part of the 2018 water price review process. We expect water businesses to take ownership for their performance and be directly accountable to their customers through self-reporting as soon as practical after the completion of each reporting year.
Each water business reports its actual performance for the year against its targets, providing a self-assessment using a simple “traffic light” rating system:
- red = failed to meet target
- yellow = close to achieving target
- green = achieved target
Using this traffic light system, businesses rate each of their measures, each of their outcomes, and their overall performance for the year. Businesses also comment on overall performance and on each outcome.
Water businesses’ summary reports are available below, along with our latest Outcomes Report providing an overview on how businesses performed in 2019-20. Refer to each business’s website for their self-reporting.
Are customers getting what they paid for?
A set of clear measures and targets for each outcome allows the water business to demonstrate whether it has delivered the outcome, and therefore whether customers received what they paid for. This ensures water businesses are directly accountable to their customers for the service they provide. As regulator, we oversee this process and require the businesses provide a summary of their self reporting.
In general for 2019-20, we consider that Victorian water customers are getting what they paid for. Businesses have continued to meet most of their commitments despite interruptions from the summer bushfires and the pandemic, and prices have largely remained flat or are falling (excluding inflation) across the pricing period. However, with the growing number of major projects that are delayed or deferred, businesses may need to carefully manage their value proposition to ensure customers continue to receive good value for money in the coming years.
Read our 2019-20 outcomes report
View each business's outcomes performance for 2019-20:
Delivery of businesses' major capital projects
Our major projects supplement covers the status of water businesses’ largest capital projects. Significant changes to the major project schedule essentially change what customers get for their prices, and should be explained to customers by the water business.
Businesses reported that as at the end of June 2020, 71 of the 197 listed major capital projects are either deferred or delayed. This is 19 more than last year and includes six affected by the coronavirus pandemic.
Read our major projects supplement
What happens next
Businesses will continue to report their annual performance against outcome commitments at the end of June each year. We anticipate our future reports will provide more commentary on how businesses are tracking against their outcome commitments, and possible implications for their ‘performance’ rating at the next price review.
Our pricing framework puts customer outcomes first
Our new PREMO water pricing framework puts customers squarely at the centre of the regulatory pricing process, and pivots Victoria’s water businesses to focus on what their customers, rather than the regulator, want and expect from their water and sewerage service provider.
As part of the 2018 water price review, water businesses established a set of customer “outcomes” following extensive engagement with their customers to inform their price submissions. These outcomes, developed with the customers, essentially reflect the value customers will receive for the prices they pay.
Performance against its outcomes will form a large part of a business’s “Performance” element towards its overall PREMO rating at the next price review, and is therefore a key element in closing the loop from one pricing cycle to the next.