Water tariffs deliver discounts to regions, price rises in metro areas

It’s a bill hike that will hit metropolitan homes — but residents in regional areas will get some relief. Here’s what you can expect on your next water bill.

The biggest water order from Victoria’s desalination plant will force up bills for metropolitan households from next week.

But residents across regional areas will get some relief as their water costs fall when new tariffs kick in on July 1.

The Herald Sun can reveal annual household bills will climb as much as $17 for residents with City West Water, with their average 12-month fee expected to hit $984.

Victoria's desalination plant in Dalyston. Picture: Jake Nowakowski

Bills would also increase $13 for households connected to South East Water, the Essential Services Commission said.

But Yarra Valley Water, the third metropolitan water business, will return $3 million for failing to meet its performance targets, giving its customers an average $9 discount next financial year.

The state government moved in March to order 125 gigalitres of water from the Wonthaggi desalination plant as water storages plummeted during an extremely dry spring and summer. Melbourne’s water catchments remain just 50.1 per cent full.

The commission’s head of water pricing, Marcus Crudden, said the full effect of the desalination order would be “offset by a reduction in other factors including the low cost of inflation and falling borrowing costs”.

“Your average water bill goes up or down every year based on a number of factors including how much you use, the cost of inflation and how much your water business spends on maintaining infrastructure and services,” he said.

The state’s 13 regional water businesses will all deliver discounts in the next financial year, with Coliban Water in Bendigo cutting $81 off the average annual bill, bringing it to $1333. Ballarat residents will save $27 on the average bill with Central Highlands Water, while those in Geelong will get an average $7 reduction with Barwon Water.

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Last year’s water price rulings delivered what the commission said was the “most widespread price cuts we have seen in 20 years”.

But a recent survey of nearly 6000 Victorians by the commission found the state’s water businesses were rated only 5.8 out of 10 for value for money, with City West Water the worst metropolitan performer.

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