We are reviewing the new prices to apply for Greater Western Water customers from 1 July 2024.
Greater Western Water price review 2024
- Guidance released20 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
Overview
We are reviewing the prices to apply for Greater Western Water customers from 1 July 2024.
Greater Western 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.
The proposal will be assessed 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.
We will seek feedback from customers and stakeholders at multiple points throughout the price review process to inform our decision-making process.
Following consultation, we issue a determination that sets the maximum prices that Greater Western Water may charge customers.
Feedback on Greater Western Water's proposals
Our consultation on Greater Western Water's price submission via Engage Victoria closed on 15 December 2023.
We will undertake further consultation upon release of our draft decision in March 2024.
Greater Western Water's price submission
Key facts about Greater Western Water's price submission
Bills are proposed to decrease (excluding inflation) for owner occupiers
Typical annual residential owner occupier water bills in the central area will decrease from $1,007 in 2023-24 to $996 in 2024-25 and then gradually increase to $1,005 by 2027-28.
For customers in the western area, typical residential owner occupier bills will fall from $1,099 to $1,092 in 2024-25 and then continue falling to $1,052 by 2027-28. This excludes inflation, which is added to bills each year.
The central and western regions will transition towards uniform tariffs
Greater Western Water proposes removing the residential sewage disposal charge and introducing a combined variable charge for water and sewerage for customers in its central area – this is already in place for western area customers. It also proposes removing the third step charge of the residential volumetric potable water tariff for customers in its western area, consistent with the two tiers in the central area.
Five outcome commitments
Greater Western Water worked with its customers to develop five outcomes, with targets to track its performance. Greater Western Water’s outcome commitments to its customers are:
- Your water is safe, consistent and resilient
- When things go wrong, we fix them
- We support our diverse communities and customers
- We enable growth and help businesses thrive
- We heal and care for Country.
Proposed typical bills 2023-24 to 2027-28
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 as well as inflation, which is added to bills each year.
Greater Western Water provided us with typical bills for different customer groups and water volumes, before inflation.
Residential customers
Typical water and sewerage bills 2023-24 to 2027-28, excluding inflation.
* The tenant bills for the Western region include a government efficiency rebate which will be paid against tenants’ water usage charge.
Non-residential customers
Typical water and sewerage bills 2023-24 to 2027-28, excluding inflation.
How does this affect you?
Greater Western Water provides water and sewerage services to residential and business customers in metropolitan Melbourne.
Our determination impacts how much customers will pay for the services they receive from Greater Western Water, and the key service outcomes they can expect for the period from 1 July 2024.
Application for regulatory period extension
Greater Western Water was established in July 2021 from the integration of City West Water and Western Water. We approved an extension application on 1 December 2021, allowing Greater Western Water an additional 12-months on its current regulatory period, to 30 June 2024.
Guidance to Greater Western Water
We released our guidance to Greater Western Water in September 2022, setting out the information it will be required to provide us in its September 2023 price submission. The specific requirements that address the one-year extension and the integration of the two former businesses was developed in consultation with Greater Western Water.
The guidance paper explains our approach and methodology to assessing water businesses’ price submissions and making a price determination.
We have 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 Greater Western Water, which participated in the 2018 review via the two former businesses, City West Water and Western Water, its price submission will need to demonstrate how it is building on the previous proposals to deliver great value to its customers.
Next steps
Once we have reviewed stakeholder submissions on Greater Western 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.
Related information
Resources
Greater Western Water's price submission
Feedback on Greater Western Water price submission
We consulted on Greater Western Water's price submission until 15 December 2023 mostly via Engage Victoria.
We will consider all feedback in our draft decision on Goulburn-Murray Water's proposals. See our Submissions Policy for how we approach anonymous and confidential submissions.