We are reviewing the prices to apply for Lower Murray Water customers from 1 July 2023.
Lower Murray Water price review 2023
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Guidance paper26 October 2021
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Lower Murray Water price submission30 September 2022
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Consultation closes1 December 2022
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Draft decisionDecember 2022 to March 2023
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Final decisionMay to June 2023
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New prices apply1 July 2023
Overview
We are reviewing the prices to apply for Lower Murray Water customers from 1 July 2023.
Lower Murray Water submitted its proposed prices on 30 September 2022. We provided guidance for its price submission in October 2021 and the business has been engaging with customers in the months since.
We are assessing the proposal against a legal framework established by the Victorian Government and set out in the Water Industry Regulatory Order, and the commission’s PREMO pricing framework.
PREMO includes incentives for Victoria's water businesses to put forward their best offer to customers and deliver the outcomes its customers value most.
Following consultation, we issue a determination that sets the maximum prices that Lower Murray Water may charge customers.
We are seeking feedback from customers and stakeholders at multiple points throughout the price review process to inform our decision-making process.
Feedback on Lower Murray Water's proposals
Our consultation on Lower Murray Water's price submission closed on 1 December 2022. Submissions can be viewed in the resources tab of this page.
We will undertake further consultation upon release of our draft decision.
Urban customer information
Key facts about Lower Murray Water's price submission for urban customers
Bills are proposed to increase
Typical annual residential owner occupier water bills will increase from $1,018 in 2022–23 to $1,021 in 2023–24 and $1,024 in 2024–25. An increase of 0.3 per cent each year. This excludes inflation, which is added to bills each year
No change to tariff structure is proposed
Overall prices will increase by 0.3 per cent before inflation each year until 2027–28.
Lower Murray Water has not proposed any change to the existing urban tariff structures.
Five outcome commitments
Lower Murray Water worked with its customers to develop five major outcomes, with measures and targets to track its performance. Lower Murray Water’s outcome commitments to its customers are:
- 'Services provide customers value for money'
- 'Provide customers reliable and safe drinking water'
- 'Provide customers reliable sewerage services'
- 'Provide customer service channels that are responsive to resolve requests and enquiries within agreed KPIs'
- 'Service our communities in a socially responsible and environmentally sustainable manner'.
Proposed typical bills 2022–23 to 2027–28
Prices and tariffs are only part of the bill. Your actual bill depends on factors such as the amount of water and services you use. Lower Murray Water provided us with typical bills for different customer groups and water volumes.
Residential customers
Typical water and sewerage bills 2022–23 to 2027–28, excluding inflation.
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | 2027–28 | |
|---|---|---|---|---|---|---|
| Owner occupier | 1018 | 1021 | 1024 | 1027 | 1030 | 1033 |
| Tenants | 294 | 295 | 295 | 296 | 297 | 298 |
Non-residential customers
Typical water and sewerage bills 2022–23 to 2027–28, excluding inflation.
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | 2027–28 | |
|---|---|---|---|---|---|---|
| Small non-residential | 1065 | 1068 | 1071 | 1074 | 1078 | 1081 |
| Medium non-residential | 3279 | 3289 | 3299 | 3309 | 3319 | 3329 |
| Large non-residential | 26269 | 26349 | 26429 | 26510 | 26590 | 26671 |
Rural customer information
Key facts about Lower Murray Water's price submission for rural customers
Bills may decrease or increase, depending on district
Depending on the irrigation district some customers using 100ML of water could see typical bills decrease by 6.4 per cent, while others will see typical bills increase by 1.3 per cent in 2023-24. This excludes inflation, which is added to bills each year.
No change to tariff structure is proposed
Irrigation tariff structures are proposed to remain unchanged.
Four outcome commitments
Lower Murray Water (Rural) worked with its customers to develop four major outcomes, with measures and targets to track its performance. Lower Murray Water’s outcome commitments to its customers are:
- Services provide customer value for money
- Provide customers with water when they need it
- Provide customer service channels that are responsive to resolve requests and enquiries within agreed KPIs
- Service its communities in a socially responsible and environmentally sustainable manner.
Changes to prices and tariffs for rural customers
Overall proposed prices for Lower Murray Water customers will go down (before inflation). Proposed prices vary depending on the tariff and area:
- Mildura irrigation and drainage: 1.3 per cent average annual decrease
- Mildura high pressure system: 6.4 per cent average annual decrease
- Merbein irrigation and drainage: 1.3 per cent average annual increase
- Red Cliffs irrigation and drainage: 0.6 per cent average annual decrease
- Robinvale irrigation and drainage: 5.5 per cent average annual decrease
Lower Murray Water proposes to maintain the existing tariff structures for its services.
Next steps
We are currently preparing a draft decision on prices to apply from 1 July 2023.
Our draft decisions for the 14 water businesses are scheduled to be released in March 2023. High quality price submissions, however, may be fast-tracked through our assessment process and released in December 2022.
Find out more
Read about how we regulate the water sector or contact us for more information.
Resources
Feedback on Lower Murray Water's price submission
We consulted on Lower Murray Water's price submission until 1 December 2022 mostly via Engage Victoria. We received 3 submissions that were general in nature including on waterways management.
We consider all feedback in our draft decision on Lower Murray Water's proposals.
Guidance
Our guidance to Lower Murray Water on preparing its price submission.