South East Water household bills will be slashed for the next five years, according to an Essential Services Commission draft decision.
In response to “expected high inflation”, typical water and sewerage bills for owner-occupiers will drop in “real terms” (before inflation) from $967 a year to $908 from 1 July 2023.
The same price will be held steady to 2027-’28.
“South East Water’s proposed price path … (is) to help address affordability for customers given the impact of expected high inflation on 2023-24 customer bills,” the ESC draft decision report stated.
ESC director of pricing Marcus Crudden says at the same time SEW will improve many of its service targets.
“South East Water is lifting its investment to focus on securing service reliability, develop alternative water supplies, and to respond to growth in its area.
“At the same time, it is delivering bill reductions before inflation, indicating customers will see improved value for money.”
In the draft decision, the ESC reduced SEW’s required revenue from $4.633 billion to $4.6315 billion over five years from 1 July, after “relatively minor” adjustments to its spending forecasts.
In response to customer feedback, SEW had committed to simplify its charges by combining its residential sewage disposal and residential variable water charges, Mr Crudden said.
Its rollout of digital meters would also continue.
SEW also committed to continuing to learn from Traditional Owners about water and land planning and management in the region, he stated.
Public submissions are open on the draft pricing plan, with a public forum on 2 May.
The ESC’s final decision is due in June.
Details: engage.vic.gov.au/water-price-review-2023
