We are reviewing the prices to apply for Southern Rural Water customers from 1 July 2023.
Southern Rural Water price review 2023
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Guidance paper26 October 2021
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Southern Rural 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 Southern Rural Water customers from 1 July 2023.
Southern Rural Water submitted its proposed prices on 30 September 2022. We provided guidance for it's 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 Southern Rural 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 Southern Rural Water's proposals
We consulted on Southern Rural Water's price submission until 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.
Southern Rural Water's price submission
Key facts about Southern Rural Water's price submission
Water bills for some districts are proposed to increase, some capped at inflation
Irrigation customers in the Werribee and Macalister irrigation districts could see bill increases of 1.0% and 1.5% respectively per year. This excludes inflation, which is added to bills each year.
All other customers will see increases capped at inflation.
New tariffs are proposed
Southern Rural Water proposes to introduce application charges to address a shortfall between revenue and cost of applications. These charges will not be applied without knowledge and consent by customers.
Five outcome commitments
Southern Rural Water worked with its customers to develop five major outcomes with measures and targets to track its performance. Southern Rural Water’s outcome commitments to its customers are:
- 'Reliable water supply: Customers have access to reliable water to support their business needs'
- 'Sustainable water: Allocations are managed in a sustainable way for customers, community, and the environment to ensure a secure future'
- 'Great service: Customers have access to great service'
- 'Valued community member: We deliver value to regional communities through direct actions and relationships with Traditional Owners, stakeholders, customers, and the general community'
- 'Fair and reasonable prices: Prices reflect customer value'.
Proposed changes to prices and tariffs
Overall proposed prices for the majority of Southern Rural Water customers will go up by inflation over the five-year period between 2023 and 2028.
Southern Rural Water proposes the following changes to tariffs:
- Cap the recreational water charge to Gippsland Water to $446,000 (before inflation) and limit the annual increase to inflation.
- Move bulk entitlement customers from a price cap to a cost reimbursement model consistent with the Bulk Entitlement Orders.
- Re-categorise some charges to miscellaneous charges as the they are based on pricing principles.
The proposed price changes before inflation are:
- Macalister irrigation area: 1.5 percent annual increase
- Werribee irrigation district: 1 percent annual increase
- Baccus Marsh irrigation district: No change
- Groundwater and rivers: No change
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
Southern Rural Water's price submission
Feedback on Southern Rural Water's price submission
We consulted on Southern Rural Water's price submission until 1 December 2022 mostly via Engage Victoria. We received 4 submissions that included feedback on its approach to recreational charges, compliance as well as waterways management.
We address feedback in our draft decision on Southern Rural Water's proposals.
Guidance
Our guidance to Southern Rural Water on preparing its price submission.