We have issued a final decision and a determination on the maximum prices North East Water can charge for its services for the next five years, starting from 1 July 2026.
North East Water price review 2026
- Guidance released19 November 2024
- Price submission due1 October 2025
- Consultation opens10 October 2025
- Consultation closes12 December 2025
- Draft decision2 April 2026
- Consultation on draft decision opens2 April 2026
- Consultation on draft decision closes1 May 2026
- Final decision and price determination5 June 2026
Overview
Our review and assessment
In early October 2025, North East Water provided us with a price submission outlining the key outcomes for its customers and prices to apply from 1 July 2026 to 30 June 2031.
We assessed the price submission, released a draft decision and consulted with interested parties between 2 April and 1 May 2026.
We received six public submissions alongside North East Water's formal response to our draft decision.
All feedback, including verbal submissions received during our public forum, informed our final decision.
Our final decision allows North East Water to invest $280.2 million in water and sewerage infrastructure and will ensure the ongoing delivery of safe, clean drinking water, while also meeting customer expectations.
You can find out more on how we engaged on this review at Engage Victoria.
Key facts from our final decision
Bills
Typical annual residential owner-occupier water and sewerage bills (including inflation) will increase from $1,097 in 2025-26 to $1,205 in 2026-27. From 2027-28, owner-occupier bills will continue to rise by an average of $70 per year, before inflation and price adjustments which are added to bills each year.
Tariffs
North East Water will rebalance its current tariff structure to gradually achieve a higher fixed to variable revenue ratio by 2030-31.
We have approved North East Water’s revised standard new customer contributions but North East Water must adopt our amendment of its negotiating framework to align with the commission’s definition of shared assets, reticulation assets, greenfield areas, and infill developments.
Outcomes
North East Water developed five Customer Outcomes for the 2026–31 period:
- Fair prices
- Sustainable practices
- Reliable systems
- Responsive services
- Local community
North East Water will maintain its three existing Guaranteed Service Levels (GSLs) and add an additional GSL relating to sewerage service responsiveness.
View our final decision and price determination
Consultation on our draft decision
We consulted on our draft decision between 2 April and 1 May 2026. All feedback received informed our final decision. We received six public submissions alongside North East Water’s formal response to our draft decision.
The submissions can be viewed in the resource tab of this page.
Public forum
On 27 April 2026, we held a hybrid public forum for interested parties to find out more about our draft decision on North East Water's prices and outcomes to apply from 1 July 2026.
Topics of discussion during the forum included:
- the commission’s role in reviewing North East Water’s pricing proposal
- how we assessed the price submission and our draft decision
- the implication of the proposed single uniform standard new customer contributions charge
- customer and community engagement.
Attendees in the room and those online asked questions of interest to the commission and North East Water.
A recording of this forum can be accessed below.
Guidance to North East Water
In November 2024, we provided North East Water with guidance on what it should include in its price submission.
The guidance paper explained our approach and methodology to assessing water businesses’ price submissions and making a price determination. It also introduced the backward-looking 'Performance' element of PREMO, which holds a business accountable for its price and service commitments from the previous price review.
As this is the second review under PREMO for North East Water, which participated in the 2018 review, we indicated that North East Water's price submission must demonstrate how it is building on the previous proposals to deliver great value to its customers.
Learn more about water price regulation
Read more about how we regulate the water sector.
Resources
Our final decision and price determination
Our draft decision
Submissions on our draft decision
North East Water's price submission
Feedback on North East Water's price submission
We consulted on North East Water's price submission until 12 December 2025. We received 7 submissions including one confidential submission and one anonymous submission.
We considered each submission in our draft decision on North East Water's proposals. See our Submissions Policy for how we approach anonymous and confidential submissions.
Guidance
Customer fact sheet
2026 water price review customer fact sheet
North East Water has provided its price submission on proposed prices and key outcomes for its customers. We will assess the price submission and make a price determination on the maximum price North East Water can charge for its services from 1 July 2026 to 30 June 2031.
Snapshot of North East Water’s price submission
| Bills | Tariffs | Outcomes |
|---|---|---|
Typical annual residential owner-occupier water and sewerage bills will increase from $1,097 in 2025-26 to $1,158 in 2026-27 and will continue to increase by about 5.5 per cent each year to $1,436 by 2030‑31. This excludes inflation, which is added to bills each year.* | North East Water proposes to rebalance its current tariff structure to gradually achieve a higher fixed to variable revenue ratio by 2030-31. Reducing the proportion of revenue collected via variable charges better supports tenants, large households and small businesses. | North East Water developed five Customer Outcomes for the 2026–31 period. To monitor its performance and report to customers, North East Water will continue to produce an annual report and a half-yearly summary. It will also establish a customer panel to help review its performance annually. North East Water will maintain its three existing Guaranteed Service Levels and add an additional GSL relating to sewerage service responsiveness. |
*You can access latest independent forecasts for inflation at Australian Bureau of Statistics.
What are the changes to prices and tariffs?
North East Water has proposed to largely maintain its existing water and wastewater tariff structures and rebalance the fixed to variable ratio of its tariff revenue which currently sits at 42:58. It has proposed to gradually achieve a higher proportion of revenue from fixed tariffs over the 2026–31 period, by increasing its variable water usage charge by less than its fixed water and wastewater service charges. This will provide some bill relief for tenants (who are currently paying the highest average bill in Victoria), large households and small business customers.
Overall, North East Water has proposed to increase its prices. Core water and sewerage price movements will vary across customers depending on their location and the size of their connection to the supply system. Over the next pricing period:
- the variable water usage charge will see an annual increase of 2.1 per cent (before inflation)
- the majority of customers with a 20mm connection will see an annual increase of between 8.3–9.4 per cent (before inflation) in the fixed water service charge
- the majority of customers who live in larger towns will see an annual increase of between 8.2–9.2 per cent (before inflation) in the fixed wastewater service charge
- all trade waste charges will see an annual increase of 5.25 per cent (before inflation)
- miscellaneous charges and fees will be adjusted annually for inflation only.
North East Water proposes to increase its combined connection charge for all new water and wastewater customers by 13 per cent (before inflation) in 2026‑27. This comprises a 62 per cent increase in 2026‑27 for its wastewater connection charge, followed by inflation-only increases for the remaining four years. It proposes to reduce its water new customer contributions to zero for the entire regulatory period 2026–31.
How will this affect your bill?
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 in addition to inflation, which is added to bills each year.
North East Water provided us with typical bills for different customer groups and water volumes, before inflation.
Typical annual water and sewerage bills (not including inflation)
| Customer group | Average usage (kL p.a.) | 2025-26 | 2026-27 | 2027-28 | 2028-29 | 2029-30 | 2030-31 |
|---|---|---|---|---|---|---|---|
| Residential (owner-occupier) | 194 | $1,097 | $1,158 | $1,222 | $1,290 | $1,361 | $1,436 |
| Residential (tenant) | 175 | $509 | $519 | $530 | $541 | $553 | $564 |
| Non-residential (small) | 180 | $1,446 | $1,525 | $,1599 | $1,677 | $1,759 | $1,845 |
| Non-residential (medium) | 1,670 | $5,777 | $5,947 | $6,114 | $6,286 | $6,464 | $6,649 |
| Non-residential (large) | 9,000 | $27,085 | $27,701 | $28,323 | $28,960 | $29,613 | $30,281 |
What are the outcomes for customers?
As part of their price submissions, water businesses must propose a set of outcomes that they will deliver to their customers over the pricing period. The set of outcomes, measures and targets are unique to each business, reflecting those performance elements that matter most to its customers, as revealed through the customer engagement process.
North East Water worked with its customers to develop five outcomes, with measures and targets to monitor its performance. North East Water’s outcome commitments to its customers are:
- Fair prices – Fair prices, value for money and increased customer support
- Sustainable practices – Minimise its impact on the environment and contribute to sustainable environmental health
- Reliable systems – Clean, safe water and more resilient systems
- Responsive services – Timely responses and a seamless customer experience
- Local community – Local people and local partnerships to achieve positive outcomes for customers.
North East Water proposes to retain its three existing Guaranteed Service Level commitments and to introduce one new Guaranteed Service Level commitment relating to sewerage service responsiveness.
North East Water also proposed to:
- boost environmental performance and cut greenhouse emissions by upgrading wastewater treatment plants and executing emission reduction strategies
- improve outage response and communication with customers by utilizing a number of digital tools (digital contact centre, smart meters, customer portal, developer online portal).
What are the major works that will go on around you?
| Project | Detail | Total ($ million) |
|---|---|---|
| Wodonga Wastewater Transfer Capacity – from Forrest Mars Avenue to West Wodonga Wastewater Treatment Plant | Upsizing and replacing the existing transfer main that is at capacity and nearing the end of its service life. This project will support an additional 2,000 housing lots by 2031. Expected to finish by 2037-38. | $205 ($34 in the 2026–31 regulatory period) |
| Wodonga-Levena Water and Wastewater Network Upgrades | Water pump station upgrades including upsizing water mains and sewers, to increase network capacity to accommodate customer growth and reduce environmental risks within the Wodonga-Leneva network. Expected to finish by 2033-34. | $66 ($28 in the 2026–31 regulatory period) |
| Bright Wastewater Treatment Plant Upgrade | Upgrading the treatment plant’s sludge treatment and lagoon infrastructure to ensure compliance with environmental regulations. Expected to finish by 2028-29. | $21 ($20 in the 2026–31 regulatory period) |
| Wangaratta Faithfull St Water Treatment Plant Upgrade | Upgrading the treatment plant to provide increased capacity and ensure water quality, security and reliability. Expected to finish by 2030-31. | $19 |
| Kiewa-Tangambalanga System Upgrade | New and upgraded water and sewer pump stations, and replacement pipelines to increase capacity to meet ongoing customer growth and ensure water and wastewater reliability and safety in the region. Expected to finish by 2030-31. | $17 ($16 in the 2026–31 regulatory period) |
How much revenue is required from 2026 to 2031?
We require each business to tell us what revenue it will require for the pricing period. This helps us understand how North East Water calculated the prices in its submission.
North East Water forecasts that it needs $306.8 million of operating expenditure and $279.7 million of capital expenditure to provide its services and cater for expected customer growth over the next five years. To fund this, it requires $506.5 million in revenue, an average of $101.3 million per year. This is an increase of $21.8 million per year on the annual average during North East Water’s current regulatory period ($79.5 million per year).
Send us your feedback on North East Water’s proposal
Submitting your feedback to North East Water’s price submission by 12 December 2025 will help us prepare for the release of our draft decision.
You can upload your submission via Engage Victoria or send it to us via the below contact details:
- Email: water@esc.vic.gov.au
- Mail: Essential Services Commission, Level 8, 570 Bourke Street, Melbourne Victoria 3000
You can also call us on 03 9032 1300 to discuss your options.