Have your say on Melbourne Water’s proposed investment plans and prices

The Essential Services Commission is seeking community feedback on how much Melbourne Water proposes to charge its customers for water services over the next five years, as part of the commission’s 2026 water price review.

Melbourne Water’s pricing proposal details the maximum amount it proposes to charge customers over the five-year period starting on 1 July 2026.

Melbourne Water does not sell water directly to households. Instead, it operates as a wholesale service, providing water and sewerage services to the metropolitan and regional retail water companies, which then deliver water to homes and businesses across Melbourne and surrounding regions. Melbourne Water also provide waterways and drainage services to Greater Melbourne.

Other direct customers of Melbourne Water include local councils and government agencies, businesses and industries, and community and groups and schools.

According to the pricing submission, the impact on the average household bill for most customers will not exceed inflation in 2026-27.

From 2027-28 to 2030-31, customers of some retailers will see annual increases of up to 1.5 per cent (excluding inflation). This is equal to an annual increase of up to $17 for the average household in metro Melbourne. Customers of other retailers will see annual decreases of up to 0.8 per cent over the same period. The bill impact varies by water retailers due to Melbourne Water’s bulk water and sewerage tariff reform.

Melbourne Water also proposed a minor reduction to the waterways and drainage tariffs (excluding inflation) over the five-year period.

The commission issues price determinations that approve the maximum prices 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.

The commission will consider community feedback and assess the submissions against a legal framework set out in the Water Industry Regulatory Order, and the commission’s Performance, Risk, Engagement, Management and Outcomes (PREMO) framework.

PREMO includes incentives for each water business to put forward its best offer to customers and deliver the outcomes its customers value most.

Anyone who would like to have their say on the submission has until 12 December 2025 to comment via the Engage Victoria website.

The commission will seek feedback from customers and other stakeholders at multiple points throughout the price review process, including through public forums and the release of a draft decision for consultation in March 2026. 

The commission will issue a final price decision in June 2026. 

Quotes attributable to Essential Services Chairperson and Commissioner Gerard Brody

“Feedback from the community will play an important role in the commission’s decision on the maximum prices for Melbourne Water.”

“When making our final pricing decision, we’ll consider a range of factors, including how well Melbourne Water has engaged with its community and whether it has followed through on past commitments.”

“Melbourne Water’s maximum price has an impact on almost everyone who pays water bills in Melbourne. We encourage owner-occupiers, businesses, and community groups to take this opportunity to have their say on the maximum water price.”

*The indicative bill values are rounded to the nearest dollar. Note these only represent the impacts of Melbourne Water’s submission and exclude impacts from retail water business submissions at the 2028 water price review, desalination water orders and other passthroughs.

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