Fringe escapes big increase in water infrastructure costs
The state's regulatory body that sets prices has released its final review of water rates for five years from next month.
Initially the Essential Services Commission recommended increases of up to 450 per cent for water infrastructure charges in Melbourne's growth areas.
But its final determination ruled there would be a cap on "new customer contributions" of between $2000 and $4000 for brownfield and greenfield developments respectively.
Property Council executive director Jennifer Cunich said that would make housing more affordable.
A big rise in infrastructure charges would have had a "detrimental impact", she said.
Home owners who are customers of Melbourne's metropolitan water businesses - City West, South East, Yarra Valley and Western Water - will pay between $47 and $222 more for an average water bill depending on their provider.
Tenants face rises of between $15 and $148.
"For Melbourne households, there will be a one-off significant increase in the first year," the commission ruled.
After that prices will plateau in line with inflation for the following four years.
Average water bills for home owners range from $848 to $975 and for tenants from $264 to $652.
The commission has set indicative tariffs for the last two years of the five-year regulatory period because of uncertainty about the costs to Melbourne Water of the Wonthaggi desalination plant.
Melbourne Water, which supplies water and sewerage services to retailers, had asked for a 14 per cent rise.
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The Commission released a final five-year review starting next month that limits big increases in water and sewerage connection and usage charges, including a cap on new customer contributions and a one‑off bill increase in the first year followed by prices tracking inflation for the remaining four years.
Property developers avoided a significant rise in connection costs: the final determination caps new customer contributions at about $2,000 for brownfield developments and about $4,000 for greenfield developments, which the Property Council says will help keep housing more affordable.
Yes — the regulator initially recommended increases of up to 450% for water infrastructure charges in Melbourne's growth areas before settling on the final caps and limits.
Homeowners who are customers of Melbourne's metropolitan water businesses (City West, South East, Yarra Valley and Western Water) will face increases of between $47 and $222 on an average water bill, with average homeowner bills ranging from about $848 to $975.
Tenants are expected to face rises of between $15 and $148, and average tenant water bills are estimated to range from around $264 to $652.
The Commission set indicative tariffs for the last two years because of uncertainty about Melbourne Water’s costs related to the Wonthaggi desalination plant, making it harder to set firm prices for those years.
Melbourne Water, which supplies water and sewerage services to retailers, had requested a 14% price rise in its submission to the regulator.
The price changes affect customers of Melbourne’s metropolitan retail water businesses, specifically City West, South East, Yarra Valley and Western Water, as well as costs flowing through from Melbourne Water.
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