Victoria’s water utilities have been given the green light to recover the costs of major infrastructure investment after the state’s economic regulator approved maximum customer prices from July 1.
The Essential Services Commission (ESC) said the approved pricing from 2026 will support significant investment in water security, network resilience and essential infrastructure, while also allowing metropolitan utilities to recover the cost of the Victorian Government’s latest desalinated water order.
The annual pricing approval aligns with the regulator’s recent five-year water price determinations, which endorsed major capital programs across Victoria to strengthen drinking water supplies, expand sewerage and drainage infrastructure, and improve resilience as demand continues to grow.
For Melbourne Water, the ESC has approved up to $7.3 billion in investment over the next five years – a 51 per cent increase on the previous regulatory period – to maintain and expand bulk water, sewerage and drainage infrastructure.
The investment will support safe and reliable water supplies, improve sewerage services, strengthen urban drainage and flood resilience, and help maintain healthy waterways across metropolitan Melbourne.
The regulator said metropolitan customers’ bills will also include an additional amount to recover the cost of the Victorian Government’s 2026-27 desalination plant water order, reflecting the growing role of desalinated water in securing Melbourne’s long-term water supplies.
Across regional Victoria, the approved prices will enable water businesses to continue investing in new and existing infrastructure needed to maintain reliable services, replace ageing assets and support population growth.
While customer bills will increase from July 1, the ESC said inflation remains the primary driver of higher charges, alongside approved infrastructure investment and the desalination pass-through for metropolitan customers. The regulator noted that annual bill impacts vary between water businesses depending on local investment requirements and operating costs.
“Victorians have rights when it comes to paying water bills. If you are struggling to pay, please contact your water business. They must help you manage your bills, and provide a range of options, such as flexible payment plans and assistance with concessions or grant applications,” ESC Chairperson and Commissioner Gerard Brody said.
“Our water bill calculator is a useful tool to estimate what your water bill will look like for the next financial year.”
