Wannon Water proposes to raise south-west water bills by $10 per year

Andrew Jeffers said Wannon Water's draft 2023-28 price submission had taken into account four years of community feedback which found customers wanted "affordable" prices more than anything else.

"We've worked with our customers and community to develop a price submission that delivers the outcomes they value, while fulfilling our obligations and addressing the challenges that face our region," Mr Jeffers said.

He said Wannon Water's prices had stayed below CPI over the past decade, but that was difficult to keep up while maintaining and expanding infrastructure.

"We have worked hard to keep prices as low as possible, however this is not financially sustainable and small price increases, together with increased borrowings, are planned to ensure reliable, accessible and environmentally responsible services," he said.

As a regional water authority, Wannon Water doesn't have any competitors for water and sewerage services, and this monopoly means its proposed prices have to be approved by an independent regulator, the Essential Services Commission. But before submitting its proposal to the ESC, Wannon Water has asked the public to weigh in.

Under the draft submission Wannon Water would collect $340 million from customers over five years, with water bills rising 0.9 per cent each year for home owners and two per cent for renters.

"This means the bill for an average residential customer will increase by $10 or less a year, and the typical renter's bill will rise by less than $5 a year," Mr Jeffers said.

He said the price rises would have been higher, but Wannon Water had opted to take on $20 million debt to offset the increase and avoid bill shock for customers.

A major part of the five-year price submission involves outlining where all that money would be spent. Among the major projects for Wannon Water were $20 million for renewing the water system, $15 million for the sewerage system, $16 million to improve drinking water in certain towns and $4 million to connect the Hopkins Point and Wollaston Road development areas to the rest of Warrnambool.

But the biggest ticket item, the complete upgrade of Warrnambool's sewerage plant, remained uncosted. A spokesman said Wannon Water had the project out for tender and for commercial reasons couldn't provide an estimate.

The spokesman also said the $16 million for improved drinking water might cover a solution for Port Fairy's water supply. He said the board were working on a final proposal for the project and there would be an announcement "within a week".

The draft price submission is open to public feedback until September 4 and will be lodged with the ESC by September 30.