Charges explained

We are committed to providing our customers with safe and reliable water and sewerage services at an affordable cost. In 2020-21, on average water bills for households will be slightly lower than in 2019-20 and will increase at a rate lower than inflation for businesses.

As a state-owned water distributor and retailer, the prices we charge are regulated by Victoria’s Essential Services Commission (ESC).

Our 2020-21 charges mean that City West Water’s residential water bills remain some of the lowest average bills in any capital city in Australia.

Over the past 5 years, Melbourne has experienced warmer, drier weather conditions with less rain, which has led to water storage levels dropping. The Victorian Desalination Plant provides a buffer for Melbourne’s water supply network, supplementing water from our protected catchments. In 2020 the Victorian Government announced an order of 125 GL of water from the desalination plant for the 2020-21 supply year to continue boost water storages.

Where does your money go?

The ESC’s Price Determination for City West Water sets out our prices from 1 July 2018 and the process we use to update our prices annually to 30 June 2023. The 2020-21 approved pricing begins from 1 July 2020.

For more information on the price determination, please visit the Essential Services Commission website. When you pay your water bill, the money contributes to the following:

Prices

Other government charges

The two charges that may appear on your bill, that are not City West Water charges include:

  • Waterways and Drainage Charge
    • We collect this charge on behalf of Melbourne Water, it helps protect and improve the health of our rivers and creeks and assists with regional drainage services and flood protection and warning systems. Learn more visit Melbourne Water’s website.
  • Parks Charge
    • We collect this charge on behalf of the Department of Environment, Land, Water and Planning.

Our 2020/21 Prices

Residential charges

Old price
(1 Jul 2019 – 30 Jun
2020)

New price
(1 Jul 2020
– 30 Jun 2021)

Price change
compared to last year

Water network charge

$57.86 per quarter

$52.70 per quarter

-$5.16 per quarter

Water usage charge

Block 1: first 440 litres of water used per day

$2.6883 per kilolitre

$2.7748 per kilolitre

+$0.0865 per kilolitre

Block 2: water usage above 440 litres of water used per day

$3.1350 per kilolitre

$3.2313 per kilolitre

+$0.0963 per kilolitre

 

 

 

 

 

Recycled water network charge*

$7.73 per quarter

$7.90 per quarter

+$0.17 per quarter

Recycled water usage charge*

$2.5235 per kilolitre

$2.5787 per kilolitre

+$0.0552 per kilolitre

Sewerage network charge

$63.58 per quarter

$63.15 per quarter

-$0.43 per quarter

Sewage disposal charge

$0.8459 per kilolitre

$0.8644 per kilolitre

+$0.0185 per kilolitre

Private fire service connection

$25.81 per quarter

$26.37 per quarter

+$0.56 per quarter

Melbourne Water waterways and drainage charge

$102.08 per year

$104.32 per year

+$2.24 per year

Parks Victoria charge

 

Minimum fee

$79.02 per year

$79.02 per year

No change

Rate

0.471₵ per NAV^ per year

0.471₵ per NAV^ per year

No change

The prices for non residential charges are as follows:

Non residential charges

Old price
(1 Jul 2019
– 30 Jun 2020)

New price
(1 Jul 2020 – 30 Jun 2021
)

Price increase
compared to last year

Water network charge

$84.29 per quarter

$76.77 per quarter

-$7.52 per quarter

Water usage charge

$2.7963 per kilolitre

$2.8851 per kilolitre

+$0.0888 per kilolitre

Sewerage network charge

$113.61 per quarter

$115.33 per quarter

+$1.72 per quarter

Sewage disposal charge

$1.7295 per kilolitre

$1.7673 per kilolitre

+$0.0378 per kilolitre

Trade waste usage charges

Volume charge

$0.8260 per kilolitre

$0.8440 per kilolitre

+$0.018 per kilolitre

Biochemical oxygen demand

$1.0085 per kilogram

$1.0305 per kilogram

+$0.022 per kilogram

Total Kjedahl nitrogen

$1.9409 per kilogram

$1.9834 per kilogram

+$0.0425 per kilogram

Suspended solids

$0.5463 per kilogram

$0.5582 per kilogram

+$0.0119 per kilogram

Inorganic total dissolve solids

$0.0196 per kilogram

$0.02000 per kilogram

+$0.0004 per kilogram

Private fire service connection

$25.81 per quarter

$26.37 per quarter

+$0.56 per quarter

 

Melbourne Water waterways and drainage charge

Minimum fee

$145.36 per year

$156.72 per year

+$11.36 per year

Rate

0.4782₵ per $ of NAV^ per year

0.4447₵ per $ of NAV^ per year

-0.0335₵ per $ of NAV^ per year

Melbourne Water waterways charge for rural areas

$56.08 per year

$57.28 per year

+$1.20 per year

Parks Victoria charge

Minimum fee

$79.02 per year

$79.02 per year

No change

Rate

0.471₵ per NAV^ per year

0.471₵ per NAV^ per year

No change

 

^Net Annual Value

* Recycled water service and usage charges are only applied to properties receiving recycled water through a separate purple coloured recycled water meter.

How your bill is calculated?

Water Charges

Our water tariff has two components - a network charge and a water usage charge.

Water Network charge

The water network charge is a quarterly fixed charge that contributes to the maintenance of the water supply network, including our water mains, service tanks, water meters and Melbourne Water's water mains, aqueducts, treatment plants and reservoirs.

Water Usage charge

In addition to contributing to the above, the water usage charges also cover the actual cost of water that is provided to the customer.

The amount of water you are charged for using is calculated from water meter readings taken approximately once every 90 days. The amount of water recorded between readings is divided by the number of days in the reading period to calculate how much water is used every day.

Sewerage Charges

Much like the water tariffs, our sewerage tariffs have two components - a fixed sewerage network charge and a volumetric sewage disposal charge.

Sewerage Network charge

The Sewerage Network charge helps us maintain the sewerage network including our sewer mains and pumping stations and Melbourne Water's trunk sewer mains and the Western Treatment Plant.

Sewage Disposal

The sewage disposal charge is for the waste water (sewage) you discharge to the sewer, including water that goes down any inside drains, sinks, toilets and any other drains that connect to the sewer.

We estimate the volume of sewage you discharge to the sewer based on the amount of water recorded by your water meter.

For residential customers your sewage disposal estimate depends on your type of residence (house or unit) and what season we are in.

For non-residential customers the sewage disposal estimate is set at 90% and this does not fluctuate with the season.

For more details refer to Pricing handbook which describes the estimation methodology and how they are applied.

Fire Service Charges

City West Water provides some customer sites with private fire service connections to our water network, to deliver water in the event of a fire. In response to changes in our responsibilities under the Water Regulations 2014, From 1 July 2019 we are introducing a private fire service charge that will cover the cost of operation and maintenance of the water network and fire service connection to allow for high pressure water in the case of a fire. For more information visit our Fire services page.
 

Other Authority Charges

We collect certain charges on behalf of other Victorian State Government Agencies including the Parks Victoria Parks Charge and the Melbourne Water Waterways and Drainage Charge. Details of why and where these charges go are below.

Parks Victoria Parks Charge

We collect an annual Parks Charge on behalf of Department of Environment, Land, Water and Planning. This charge helps fund the purchase, development and maintenance of Melbourne's major parks, gardens and waterways. This amount is usually charged during the July-September quarter and may be why your account, for that period, seems higher than normal.

The Parks Charge for each property in 2020-21 will be the greater of the minimum fee of $79.02 and a fee based on the property's 'net annual value' or 'NAV', calculated at 0.471cents per dollar of NAV per year.

For more information about the charge and Park Victoria's services visit Parks Victoria's website.

Melbourne Water Waterways and Drainage Charge

We collect a Waterways and Drainage Charge on behalf of Melbourne Water. This charge contributes to the management of waterways, drainage assets and floodplains in our region.

For more information about the charge and Melbourne Water's services and projects visit Melbourne Water's website.

Where your money goes

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