Melbourne Water lodges 2026-31 Price Submission with Essential Services Commission
Melbourne Water has submitted its 2026–31 Price Submission to the State’s independent economic regulator – the Essential Services Commission (ESC), marking a pivotal moment in Melbourne's water future.
Grounded in insights from more than 8,000 customers, as well as diverse stakeholder groups including water corporations and Traditional Owner partners, the proposal outlines the investments and service commitments needed to support population growth, strengthen climate resilience, safeguard the health of our waterways and manage drainage.
"We've listened closely to our customers and communities," said Dr Nerina Di Lorenzo, Melbourne Water Managing Director. "This Submission reflects their voices and channels investment into the services and outcomes that matter most to Melbournians."
Over the next five years, Melbourne Water proposes to invest more than $7.8 billion in prudent, efficient and deliverable capital investment to safeguard the services all Melbournians rely on. This includes:
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$2.9 billion to sustain and modernise drinking water infrastructure,
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$2.7 billion to ensure capacity and ongoing environmental compliance of sewerage networks, and
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$2.2 billion to enhance waterway health, drainage and flood-management systems.
"These include investments in water security and readiness for large-scale water supplies that ensure our city is resilient to climate change while it grows," said Dr Di Lorenzo. "This is particularly critical as we are seeing drier conditions now, reminding us of the need to remain proactive."
Underpinning these investments are five performance commitments that directly reflect customer values and explain underlying cost drivers: safe and reliable bulk water supplies for now and into the future; maintaining a sustainable and dependable sewerage network; protecting our waterways; delivering urban drainage and flood resilience; and being a trusted partner in the broader water cycle through open, ongoing collaboration.
"By careful planning and investment in the right actions today, we avoid more costly solutions in the future, safeguarding life and liveability today and for generations to come," said Dr Di Lorenzo. "Each dollar has been carefully weighed against the dual tests of prudency and efficiency, ensuring cost-effectiveness in both the short and long term."
The proposed investments will result in modest increases in Melbourne Water’s charges over the price period. However, reflecting the ongoing cost of living pressures, Melbourne Water is not proposing to increase prices above inflation in 2026-27.
"Through our ongoing work with our customers and community, and critically testing every dollar of investment, we have put further downward pressure on prices since our draft release in May," said Dr Di Lorenzo.
This means, for the average metropolitan Melbourne household, water bills are proposed to increase by up to 1.5 per cent per annum above inflation from 2027 to 2031 – equivalent to up to $17 annually. This excludes any proposed changes through retail water corporations and usual price adjustments. As the bulk water and sewerage supplier for Greater Melbourne, Melbourne Water’s charges make up approximately 50 per cent of a typical metropolitan Melbourne household’s water bill.
The submission also covers the waterways and drainage charge paid by homeowners and businesses in Melbourne, which covers investment in rivers and creeks and manages the city’s major drainage system. This charge will not increase by more than inflation over the period.
In the submission, Melbourne Water is also committing to new programs of support for customers. For the first time, Melbourne Water is introducing support for vulnerable customers, complementing the existing measures of retail water corporations. This package will provide customers experiencing payment difficulties with access to flexible plans, water-efficient appliances at low or no cost.
The ESC will now rigorously assess the proposal's efficiency, prudency and alignment with community expectations.
The complete Melbourne Water proposal is available online for the community to explore its contents and find out how to participate in the ESC's review process. We continue to encourage customers to have their say on our submission.
Visit the website here: https://letstalk.melbournewater.com.au/price-submission
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