Tariffs & charges

The Essential Services Commission (ESC) approves the maximum prices South Gippsland Water can charge. For 2026–27, the approved increase is 3.5% plus 4.08% CPI, and bulk water purchases that together reflect rising costs across the water sector.

Our prices are independently regulated by the ESC. The ESC reviews our Price Submission and approves the maximum prices we can charge customers.

Price increases vary between water corporations depending on their investment needs and the pricing paths approved for each organisation. Our prices were designed to increase more gradually in the early years of the current five-year pricing period, with larger increases planned in the later years. As a result, this year’s increase may appear higher than some other water corporations, even though it follows the pricing path approved by the ESC.

Your bill generally includes: • A water usage charge based on the amount of water you use. • A water access fee that helps maintain drinking water quality and water infrastructure. • A wastewater/sewerage access fee that covers the collection, treatment and disposal of wastewater.

Regional water corporations serve fewer customers across larger geographic areas. We still need to maintain pipelines, pump stations and treatment plants to provide reliable services, which can result in higher costs per customer than metropolitan areas.

Volumetric charges (water usage) were intentionally set lower than forecast in the first years of the current pricing period to help smooth bill impacts for customers. This year’s increase reflects a planned adjustment towards the approved pricing path, while fixed charges have increased more steadily over time.

South Gippsland Water sources most of its water locally from reservoirs and catchments across our region. However, during dry periods or when local supplies are under pressure, we can also access water from Melbourne’s water supply system. This additional water, known as bulk water, provides an important backup supply and helps ensure we can continue to provide safe and reliable drinking water to our communities, particularly during droughts and periods of high demand. Like electricity or other wholesale services, South Gippsland Water pays for the bulk water it purchases from the Melbourne system. These costs are passed directly through to customers as part of our tariffs and are not a source of profit for South Gippsland Water.

The Melbourne bulk water costs reflect the increased volume of water we plan to purchase. Due to projected demands on our water supply, we are planning to use more water from the Melbourne system. In 2024, South Gippsland Water decided to defer the purchase of additional bulk water from the Melbourne system. This minimised price rises for customers for the last two years. Unfortunately, the dry conditions we are currently experiencing, and forecast to experience in the next 12 months, mean that we can no longer hold off purchasing additional water from the Melbourne system.

No. Bulk water costs are a direct pass-through cost. South Gippsland Water does not make a profit from these charges.

Our 2023 Price Submission included the purchase of an additional 2 GL (gigalitres) of water entitlement from the Melbourne system. A gigalitre is one billion litres of water. This additional entitlement was intended to help secure future water supplies for our region. The purchase was deferred while the new South-Central Reform pricing arrangements were being finalised.

Water use is measured in ML (megalitres). A megalitre is one million litres of water. The amount of Melbourne system water we need varies from year to year depending on weather conditions, local water availability and customer demand.

Your water bill helps pay for the day-to-day delivery of drinking water and wastewater services, maintaining and upgrading essential infrastructure, and protecting local waterways and the environment.

As a state-owned water corporation, South Gippsland Water does not pay dividends to shareholders. Any surplus revenue is reinvested back into the South Gippsland region through capital works, local jobs, environmental initiatives and improvements that help keep services safe and reliable for our communities. Even with recent price increases, customer revenue does not fully cover the cost of delivering services and investing in essential infrastructure, meaning South Gippsland Water continues to carefully manage costs and borrowings to support long-term service delivery.

Read more about Our Major Projects.