Melbourne Water price review 2021

We're reviewing Melbourne Water's prices for the period from 1 July 2021 to 30 June 2026.

Melbourne Water has submitted a proposal on pricing and key outcomes for customers for the five years from July 2021, and we are reviewing its submission. 

This review is relevant to water customers living in and around the Melbourne metropolitan area. 

Melbourne Water provides wholesale water supply and sewage management services to retail water corporations that we also regulate. These retail water corporations are City West Water, South East Water, Yarra Valley Water, Western Water, Barwon Water, South Gippsland Water and Westernport Water. 

Melbourne Water also provides drainage and waterways services in and around Melbourne. 

This review informs the maximum charges customers pay for these services. We are seeking feedback from Melbourne Water customers and stakeholders.

Give us your feedback

Share your views on Melbourne Water's proposals, or lodge a written submission, through our Engage Victoria page.

Accessible word versions of the submission and the community summary are available on the resources tab. 

How we're reviewing Melbourne Water prices under our new pricing framework

We are undertaking this review under our water pricing approach PREMO, which includes new incentives for water businesses to deliver outcomes most valued by customers. PREMO also enables us to fast-track submissions where we are able to quickly assess compliance with our guidance and the regulatory order.

Our guidance for Melbourne Water's review is similar to the guidance we used in our 2018 water price review (under PREMO) of 17 water businesses. We have made modifications to the guidance to reflect Melbourne Water's role as a bulk water and sewerage supplier, its waterways and drainage functions and the effects of the coronavirus pandemic.

We review water prices in line with key requirements

As part of the water price review process, Melbourne Water can send us submissions on their proposed prices and key outcomes. Once we make a determination on these proposals, we create an annual tariff schedule for Melbourne Water. The schedule outlines the maximum prices Melbourne Water can charge its customers (City West Water, South East Water, Yarra Valley Water, Western Water, Barwon Water, South Gippsland Water and Westernport Water) for specific services, such as water delivery and sewage processing. And the maximum prices it can charge consumers of waterways and drainage services. 

We review the price submission against the Water Industry Regulatory Order (2014), the Essential Services Commission Act 2001, and the guidance we provided water businesses in November 2019 and August 2020.
 

Learn more about water price regulation 

Read about how water bills are calculated and how we regulate the water sector.