Melbourne Water and North East Water issued with price review guidance

The Essential Services Commission has issued guidance to Melbourne Water and North East Water to inform their 2026 water price review submissions.

The guidance papers outline the information the two water businesses must provide in their submissions for prices they propose to apply from 1 July 2026. 

The commission’s PREMO water pricing framework provides strong incentives for water businesses to deliver better value for customers. Pricing submissions should reflect each water business’s ‘best offer’ to its customers.  

Water businesses must submit pricing plans that demonstrate how they have considered the services customers want and take accountability for delivering on those service commitments.  

This is the second price review under the commission’s PREMO framework for Melbourne Water and North East Water, and introduces two new elements: 

1. A backward-looking performance assessment, which holds each water business accountable for the delivery of its proposals from the previous price review. 
2. A demonstration of how each water business is building on its previous proposal to deliver value to its customers. 

The guidance provided to Melbourne Water and North East Water is consistent with the 2023 water price review of 14  Victorian government owned water businesses. 

Melbourne Water and North East Water must lodge their price submissions with the commission by Wednesday 1 October 2025.