The Essential Services Commission has released guidance to help 16 Victorian water businesses prepare their price submissions for the 2028 Water Price Review.
The guidance outlines the commission's approach to the review and the information water businesses must include in their submissions. This will help water businesses invest and deliver good consumer outcomes in the long-term.
Water businesses must set out:
- the maximum price they propose to charge customers for water and sewerage services over the next five years from 1 July 2028
- how they engaged with customers to understand the services they want
- how they intend to deliver on their commitments to customers.
The final guidance has been informed by the feedback and expertise of water businesses, community and environmental organisations, and water customers. It includes:
- greater emphasis on the need for long-term planning over 15 years, including a requirement for well-developed asset management systems
- the introduction of an efficiency benefit sharing scheme to encourage water businesses to better control operating costs, with the final guidance updated to include information on how the scheme will work in practice
- updates to support accessible and inclusive engagement with customers, informed by the commission's Getting to Fair: Advancing Equity strategy and First Nations Self-Determination Framework, including clear examples of how businesses should engage with First Nations customers and Traditional Owner groups
- a continued focus on performance and accountability, including how water businesses plan to deliver what customers are paying for.
A detailed summary responding to feedback on the draft guidance can be found on Engage Victoria.
Water businesses must lodge their price submissions with the commission by 13 September 2027.
The commission will seek feedback from water customers throughout the review to help inform its final decision on the maximum prices each water business can charge from 1 July 2028.
The commission will publish its final decision in June 2028, following public consultation on a draft decision.
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
"Water businesses must put the long-term interests of customers at the centre of their pricing proposals."
"We'll be looking for good long-term planning; delivering the outcomes customers pay for while keeping costs efficient; and providing fair and inclusive services, including support for customers experiencing vulnerability."
"We've taken feedback into account and provided greater clarity to help water businesses prepare their price submissions. We'll continue to seek feedback from water customers throughout the review to help inform our final decisions on maximum water prices in 2028."
