UPDATE 3.30pm:
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A Central Highlands Water spokesperson said in a statement the agency will "undertake a detailed review of the draft decision" from the ESC, and "respond to queries requiring further information by May 12".
"We welcome the independent scrutiny by the ESC of our proposal to ensure that it delivers value for money for our customers," they said.
"Following consideration of our response to the draft decision, the ESC will make a final decision on CHW's pricing proposal (including revenue requirements and infrastructure investments) to meet the needs of our customers and community over the next 5 years."
PREVIOUSLY:
The water bill regulator has slammed a proposal to increase Ballarat bills by $10 a year from 2024-25, calling for Central Highlands Water to justify its spending plan.
CHW is required to revise its pricing structure every few years, and needs approval from Victoria's Essential Services Commission to enact any changes.
The ESC sets the maximum limit on water prices for customers.
Last year, CHW asked for bills to remain the same for 2023-24, and rise 1 per cent each year in line with the consumer price index for the following four years.
According to an ESC media release, the proposal states "the average bill for households will remain at around $1,231 in 2023-24, then rise by around $10 each year to $1,281 in 2027-28, before inflation".
At the time, CHW noted it would drastically increase support for residents having trouble paying their water bills, doubling its support fund to $2.5 million.
The ESC has reviewed the proposal, and called for a "lower revenue requirement", a $20 million cut over five years, noting "errors" in some of its financial modelling.
"Since lodgement of its price submission it has become increasingly likely that a relatively high inflation adjustment will be incorporated into 2023-24 prices, Central Highlands Water must provide us with further information illustrating how it intends to address the impacts of relatively high inflation on its proposed prices and customer bills," a report states.
The price increases will help support key infrastructure projects as population growth continues, the ESC notes, but "the commission has requested additional information in relation to proposed new customer contributions charges, ahead of making its final decision".
IN THE NEWS
"Our draft decision finds that Central Highlands Water has not sufficiently made the case to justify its proposed increases to new customer contributions," pricing director Marcus Crudden said in a statement.
A public forum will be held on April 28 for further comment.
Mr Crudden urged anyone having difficulty paying bills to get in touch with CHW early.
CHW has been contacted for comment.
The final price decision will be released in June.
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