Households may get payouts for Greater Western Water billing bungle

6 days ago 5

Melbourne households could have hundreds of dollars worth of delayed bills written off if Greater Western Water’s billing bungle from 2024 continues, with tens of thousands of homes also in line for compensation over a botched system upgrade.

But the billing issues could continue to June 2026 under the redress scheme, which would cost the public water company $130 million, if the Essential Services Commission accepts the proposal following consultation.

Greater Western Water launched its $100 million-plus upgraded billing system in May 2024. But the new system couldn’t create bills automatically and staff had to check each bill manually.

Bills were therefore delayed and resulted in bill shock. They were incorrect, inflated or missed required information, and the ability to pay by direct debit was also suspended without notice.

The commission is now overseeing the redress proposal for customers and a plan to allow Greater Western Water to remain financially viable and return to normal by June 2026.

If the commission accepts the proposed enforced undertaking, following three weeks of consultation with Engage Victoria, Greater Western Water will forgive $75 million worth of bills and pay another $55 million in compensation.

Households and small businesses that still haven’t received a bill from 2024 would have the bill written off entirely.

Customers who have already received a bill from 2024 would be credited $80 if it was at least seven months late.

Bills delayed between January 2024 and June 2026 would also result in $80 to $240 credits.

Another $80 would be credited to the 70,000 customers affected by the suspension to direct debiting.

The public water company would also be blocked from recovering or issuing bills more than 12 months after the relevant quarter.

If the proposed solutions are accepted, Greater Western Water will:

Not recover charges for any unissued bills which cover usage periods in the calendar year 2024. This is estimated to clear $75 million in unbilled amounts from customer accounts
Provide an $80 credit to customers who have previously received a delayed bill for 2024 charges, if the delay period between bills was more than seven months
Not recover or issue a bill more than 12 months from the end of the quarter being billed
Provide a credit of between $80 and $240 to customers who receive a delayed bill for charges incurred for usage from January 2025 to June 2026, depending on how delayed the bill is
Provide an $80 credit to the approximately 70,000 customers who were affected by the suspension of its ‘direct debit in full’ payment option
Comply with specific customer communication requirements
Implement compliance improvement measures.

But the Essential Services Commission is considering whether to allow Greater Western Water to continue issuing bills outside the normal quarterly cycle to catch up by June 2026, emphasising that bills should still be staggered to avoid bill shock for households and small businesses.

Those bills would still have to be sent within 12 months of each quarter.

Greater Western Water is also seeking approval to issue outstanding bills for large business customers from 2024 by February next year.

The authority has more than 630,000 customers in inner Melbourne and regional Victoria, including Footscray, Werribee, Sunbury, Melton, Bacchus Marsh and Macedon. Residents cannot choose their water company.

Essential Services Commissioner Gerard Brody said the commission was focused on securing redress for affected customers, while ensuring accountability and a clear path back to normal billing for Greater Western Water to maintain its financial viability.

“We put Greater Western Water on notice back in September 2024 and set clear billing expectations. Unfortunately, billing issues have persisted, and customers have been left in limbo,” Brody said.

“Greater Western Water has estimated the redress at $130 million, which reflects the scale of the failures and the need to protect customers from bill shock.”

Services were still provided throughout the disrupted billing period.

In a statement, Greater Western Water acknowledged the frustration and inconvenience.

“We’re sorry for the impact this has had on our customers,” a spokesperson said.

“The proposed enforceable undertaking reflects our commitment to take responsibility, resolve the issues and make lasting improvements. It outlines the actions we will take to support customers and strengthen our billing practices over the next three years.”

Consultation is open on the Engage Victoria website until October 22.