Regulator releases draft decision on North East Water's proposed prices
Essential Services Commission
The Essential Services Commission has released its draft decision on how much North East Water can charge customers for water services over the next five years, from 1 July 2026.
North East Water provides water and sewerage services to approximately 120,000 people in 39 towns. Its service area includes Wodonga and Wangaratta and is bound by Corryong, Yarrawonga, Benalla and Dartmouth.
The commission is largely satisfied that North East Water’s proposed price increases are needed to meet customer expectations and invest in infrastructure. However, the commission has proposed reducing the business’ operating expenditure.
The commission has also requested more information and consultation about proposed new customer contribution charges.
North East Water must reconsider these aspects of its proposal, which impact customer bills.
Under North East Water's pricing proposal, bills for owner-occupiers would increase by 5.5 per cent each year, before inflation. That’s an increase of $61 in 2026-27, bringing the average annual bill to $1,158.
Bills for renters would increase by 2 per cent each year, before inflation. That’s an increase of $10 in 2026-27, bringing the average annual bill to $519.
The draft decision allows North East Water to invest $280 million in water and sewerage infrastructure so it can continue to provide clean and safe drinking water.
North East Water has proposed increasing support for low income and vulnerable customers.
North East Water must submit a response to the commission’s draft decision and provide an updated financial model by 1 May 2026.
Anyone else who would like to provide feedback can do so on Engage Victoria until 1 May 2026. Community members are also invited to attend a public forum on Monday, 27 April 2026 at 5.30pm at the North East Water Wodonga office.
The commission will publish a final decision and determination in June 2026. The new prices will take effect from 1 July 2026.
|
Indicative bill, before inflation |
|||||||
|
Customer group |
Avg. consumption (KL per annum) |
2025-26 (current) |
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 (Tenants) |
175 |
$509 |
$519 |
$530 |
$541 |
$553 |
$564 |
Prices are based on North East Water’s proposal and not the commission’s draft decision. Prices are subject to change.
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
“The commission considered whether North East Water’s proposed prices balance the need to invest in infrastructure that delivers safe, clean drinking water, with the need to keep prices reasonable for customers.”
“We think the proposed prices strike an appropriate balance that enables North East Water to maintain vital infrastructure. But we’ve asked them to revisit their proposed operational spending, which we think could be reduced.”
“The commission thanks customers and stakeholders for their submissions and participation to date. We value and encourage feedback on this next stage to help inform our final decision on North East Water’s pricing proposal.”
Background
The commission issues price determinations that approve the maximum price water businesses may charge customers. These prices are based on an assessment of the efficient costs water businesses need to deliver services, including high-quality drinking water, reliable and secure supplies, and meeting environmental standards while supporting a growing population.
Glossary
Operating costs
Operating costs are the ongoing costs a business incurs to run its day-to-day operations and keep delivering its services. For example, repairs and maintenance for leaking pipes, staff costs, and water quality testing costs.
New customer contribution charges
New customer contributions, also known as developer charges, are one-off charges levied by water businesses on a property owner applying to connect to a water business’s works or applying to receive increased services. These charges contribute to the cost of works or the provision of services that will benefit the property.
New customer contributions establish how much a connecting party pays upfront, and what will be paid through ongoing charges by the connecting party and all other customers.
Contact details:
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