Independent regulator baulks at Coliban Water’s request

Bendigo residents are already paying some of the highest bills in Victoria but are likely to be slugged more next financial year. Read why.

The essential services watchdog has branded Coliban Water one of the most expensive providers in the state, and warned that a proposed price hike would likely add $125 to the average bill.

A draft report from the Essential Services Commission has rejected the water authority’s submission that it would need $731.4m in revenue over a 5-year period, and revised it down by $4M.

Coliban Water told the ESC it wanted to embark on a “Big Water Build” and invest in infrastructure.

Coliban Water had requested an increase to typical annual water and sewerage bills of 1.9 per cent each year in 2023 – 24 and 2024 – 25, then by 2.5 per cent each year to 30 June 2028, before inflation.

However, the regulator found that the combined effect of the proposed price rise, coupled with inflation - about 7 per cent, would have a substantial impact on customers.

“Unlike some other water businesses, Coliban Water proposed to increase prices in real terms over the 2023 – 28 regulatory period,” the report said.

“Coliban Water’s customer bills are currently among the highest in Victoria.”

The ESC said a consumer price index change of around 7 per cent in annual terms would mean an annual increase of about $125 for the typical annual residential owner occupier water and sewerage bill for a Coliban Water customer.

Coliban serves Greater Bendigo, Campaspe, Central Goldfields, Macedon Ranges and smaller townships.

Coliban Water said in its submission, that it wanted to deliver the Big Water Build with a direct capital expenditure of $435 million.

Coliban Water said it needed infrastructure upgrades and wanted to phase in the price increases gradually.

The ESC has not ruled out the proposed bill increase from July 1, but has told the water authority to add more detail to its plans and invited members of the public to make submissions before a final ruling is made in June.

Submissions can be made online.