We are reviewing the new prices to apply for Goulburn-Murray Water customers from 1 July 2024.
Goulburn-Murray Water price review 2024
Draft guidance21 June 2022
Final guidance13 September 2022
Price submission due29 September 2023
Consultation on price submission opens4 October 2023
Consultation closes15 December 2023
Draft decisionMarch 2024
Final decision and price determinationJune 2024
We are reviewing the prices to apply for Goulburn-Murray Water customers from 1 July 2024.
Goulburn-Murray Water submitted its proposed prices on 29 September 2023. We provided guidance for its price submission in September 2022 and the business has been engaging with customers in the months since.
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 Goulburn-Murray Water may charge customers.
We will seek feedback from customers and stakeholders at multiple points throughout the price review process to inform our decision-making process.
We want to hear from you
Our first consultation period on Goulburn-Murray Water's proposal is now open on Engage Victoria. Consultation closes on Friday 15 December 2023.
Goulburn-Murray Water's price submission
Key facts about Goulburn-Murray Water's price submission
Bills may decrease or increase, depending on the service category
Goulburn-Murray Water proposes a decrease in the typical gravity irrigation customer bill (except for Torrumbarry) and the typical regulated diverters bills over the 4-year period, before inflation.
Unregulated and groundwater diverters, water supply districts and pumped irrigation customers may see higher typical bill increases before inflation.
Small-sized unregulated diverters and a typical Shepparton groundwater diverters may see bill decreases before inflation.
Tariff reforms are proposed
Goulburn-Murray Water proposes changes to drainage tariffs and to move to system pricing for bulk water pricing.
Five outcome commitments
Goulburn-Murray Water worked with its customers to develop six outcomes, with targets to track its performance. Goulburn-Murray Water’s outcome commitments to its customers are:
- Reliable supply
- Credible business
- Fair pricing
- Efficient operations
- Responsive services
- Socially responsible.
Changes to prices and tariffs
Goulburn-Murray Water proposes price changes for its various services. Following are some of the key changes on customer bills (before inflation) over the period 2024-25 to 2027-28:
- A typical gravity irrigation customer bill will decrease by 1 to 3 per cent or stay the same, depending on the district (except for Torrumbarry).
- A typical pumped irrigation customer bill will increase by between zero to up to 13 per cent (Woorinen), depending on the district.
- Regulated diverters bills will decrease by 5 to 12 per cent, depending on the size of the customers.
- A typical unregulated diverters bill will increase by 4 to 8 per cent while small-sized unregulated diverters bill will decrease by 6 per cent.
- Water supply customer bills will increase by between zero to up to 29 per cent, depending on the district.
- A typical groundwater diverters customer bill will increase by 1 to 3 per cent while small-sized groundwater bills will decrease by 7 per cent. A typical Shepparton groundwater diverters bill will decrease by 1 to 6 per cent however small-sized Shepparton groundwater bills will increase by 1 per cent.
Goulburn-Murray Water proposes the following tariff reforms:
- Reduce the number of surface and subsurface drainage pricing entities by amalgamating existing entities.
- Phase out the surface and subsurface drainage water use fees over 2024-25 to 2031-32.
- Combine its primary and community surface drain tariffs.
- Implement a standard drain diversion site fee and remove the agreement volume fee for surface drainage.
- A move from basin pricing to system pricing for bulk water pricing.
How does this affect you?
Goulburn-Murray Water provides water and drainage infrastructure services to rural customers in northern Victoria.
Our determination impacts how much customers will pay for the services they receive from Goulburn-Murray Water, and the key service outcomes they can expect for the period from 1 July 2024.
Goulburn-Murray Water's prices will be regulated under the Victorian framework
In April 2022, the Australian Competition and Consumer Commission released its decision that Goulburn-Murray Water will cease to be a Part 6 operator under rule 23 of the Commonwealth Water Charge Rules 2010 after 30 June 2024.
Accordingly, from 1 July 2024 we will regulate prices for Goulburn-Murray Water’s infrastructure-related services under the Victorian Water Industry Regulatory Order. However, our 2024 water price review will look very similar to our previous price reviews of Goulburn-Murray Water.
The biggest change is that we will assess Goulburn-Murray Water's price submission under our PREMO water pricing framework. PREMO includes incentives for Goulburn-Murray Water to put forward its best offer to customers and deliver the outcomes they value most.
We will assess how Goulburn-Murray Water's price submission addresses Risk, Engagement, Management and Outcomes. We will not assess the 'Performance' element of PREMO this first time around, but we will monitor Goulburn-Murray Water's performance for our next price review.
Guidance to Goulburn-Murray Water
We released our guidance to Goulburn-Murray Water in September 2022, setting out the information that we require Goulburn-Murray Water to provide to us in its September 2023 price submission.
We amended our draft guidance to reflect the feedback we received during our consultation. This included minor changes suggested by Goulburn-Murray Water and a requirement for Goulburn-Murray Water to provide additional information to assist us in the assessment of diversion tariffs levied on its domestic and stock water users.
The guidance paper also explains our approach and methodology to assessing water businesses' price submissions and making a price determination.
Once we have received and reviewed stakeholder submissions on Goulburn-Murray Water's price submission, we will prepare a draft decision on prices to apply from 1 July 2024.
Our draft decision is scheduled to be released in March 2024.
Learn more about water price regulation
Read more about how we regulate the water sector.
Goulburn-Murray Water's price submission
Our guidance to Goulburn-Murray Water on preparing its price submission.