The Essential Services Commission has accepted a court-enforceable undertaking requiring Greater Western Water to provide a $130 million customer remediation package – the largest undertaking the commission has ever accepted.
Greater Western Water has acknowledged that failures with its new billing system caused significant billing disruptions and multiple breaches of the Water Industry Standard.
The undertaking requires Greater Western Water to remediate residential and small business customers by:
- writing off any 2024 charges that were not billed before 1 September 2025, which will clear about $75 million in unbilled charges from customer accounts
- giving an $80 credit to customers who received a bill for 2024 charges that was delayed by more than seven months
- only sending bills or recovering charges within 12 months from the end of the quarter being billed
- giving credits of between $80 and $240 to customers who receive a delayed bill for usage charges from January 2025 to June 2026, based on the length of the delay
- giving an $80 credit to approximately 70,000 customers affected by the suspension of its 'direct debit in full' payment option.
Greater Western Water must also implement measures to improve compliance and follow rules about how it communicates with customers.
Temporary exception from quarterly billing
Following public consultation, the commission has also approved four time-limited exceptions to quarterly billing for Greater Western Water. This approval provides Greater Western Water time to fully rectify its billing system and recognises that consumers rely on its ongoing ability to invest in critical water services and infrastructure.
Greater Western Water can send delayed bills to residential and small business customers for January 2024 to June 2026 charges on the following conditions:
- 2024 charges were sent before 1 September 2025.
- January to March 2025 charges are sent within 12 months of that billing period, list the amount due and offer payment plans.
- April 2025 to June 2026 charges are sent within 12 months of that billing period, list the amount due and offer payment plans. If it is not sent within four months, customers must be given an estimate of their bill.
Greater Western Water can also issue outstanding 2024 bills to large business customers by 28 February 2026 provided it explains the charges and offers payment plans.
In response to the public consultation and consumer feedback, the commission added several new conditions to the exception.
Quotes attributable to Essential Services Commission Chairperson and Commissioner, Gerard Brody
"Greater Western Water's billing issues have frustrated and confused customers for 18 months now. This undertaking compensates those customers and holds Greater Western Water accountable."
"This $130 million package is the biggest enforceable undertaking the commission has ever accepted. All unbilled 2024 charges for residential and small business customers will be written off, credits will be applied for billing delays, and they won't be billed for charges over a year old."
"The redress package is designed to address bill shock. In addition to writing off charges and applying credits to bills, Greater Western Water must give customers more time to pay and offer flexible payment plans and hardship grants. Victoria has strong consumer entitlements to ensure customers are not required to make immediate payment of bills they cannot afford."
"We accepted the undertaking because it provides accountability and it gives Greater Western Water a chance to get back on track. That's important because the community needs it to return to normal operations so it can continue providing clean and safe drinking water and maintaining our infrastructure."
