Details of Proposed Investments and Price Adjustments
The Essential Services Commission has unveiled its draft decision on Melbourne Water’s pricing for water, sewerage, waterways, and drainage services, effective from 1 July 2026. This decision outlines how much Melbourne Water can charge its customers over the next five years.
Melbourne Water acts as a wholesaler, providing water and sewerage services to metropolitan water retailers and some regional retailers. These retailers, in turn, supply water to homes and businesses throughout the region.
According to the draft decision, Melbourne Water is set to invest $7.3 billion in critical infrastructure projects. This represents a 7 per cent reduction from their initial proposal but marks a significant 51 per cent increase in infrastructure spending compared to the previous five-year period.
Gerard Brody, the Chairperson and Commissioner of the Essential Services Commission, remarked, “The commission has considered whether Melbourne Water’s proposed prices balance the need to deliver safe drinking water and invest in infrastructure, with the need to minimise cost pressures on retail water businesses and consumers.”
The draft decision has introduced a minor reduction in waterways and drainage charges for the 2026-27 period. Owner occupiers will pay $124, down from $125, while small business customers will see their charges decrease to $186 from $188, before accounting for inflation.
The Essential Services Commission invites public feedback on the draft decision until 1 May 2026. A public forum is scheduled for 23 April 2026 at 5pm, offering an opportunity for further discussion and input.
Following the public consultation period, the commission plans to release a final decision in June 2026. The newly established pricing will then take effect starting 1 July 2026.
Melbourne Water can now respond to the draft decision. Anyone else wishing to provide feedback can do so on Engage Victoria. The commission has also released its draft decision on North East Water’s prices, indicating a broader scope of their regulatory oversight in Victoria.
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.
The commission thanks customers and interested parties for their submissions and participation to date. “We value and encourage feedback on our draft decision to help inform our final decision on Melbourne Water’s pricing proposal,” said Brody.
Last updated: 4 April 2026, 7:54 pm
