North East Water prices approved for next 5 years
5 June 2026
North East Water has received its final price determination from the Essential Services Commission (ESC), which sets the maximum prices that can be charged from 1 July 2026 to 30 June 2031.
The ESC determination follows a rigorous regulatory process and extensive community and stakeholder engagement by North East Water over the past three years.
Over the next five years, North East Water will deliver a $280.2 million capital investment program supporting more than 9,000 new home connections and creating an estimated 500 planning and construction jobs across the region.
Managing Director, Jo Murdoch, welcomed the decision and said the new price period will support continued investment in critical water and wastewater infrastructure and essential services across the north-east region.
“We heard very clearly that our customers are concerned about housing shortages, cost of living and the environment and that North East Water has a role in responsibly addressing these. The determination has balanced affordability for our customers with the need to invest for a growing and changing region."
‘It allows us to continue delivering safe, reliable water and wastewater services while making the investments needed to support population growth, climate resilience and changing customer expectations.”
The water corporation will also continue to modernise its business by strengthening systems, processes, and capability to deliver high-quality services now and into the future.
Ms Murdoch said, “North East Water still has the second most affordable regional bill in the state. This is on the back of over a decade of flat and declining prices. Increased investment is now required to meet our obligations to meet growth and provide sustainable water and wastewater services. We are pleased with the outcome which has required us to undertake a rigorous expenditure review with our economic regulator which has determined that our proposed operational and capital expenditure is prudent and efficient."
Under the ESC’s decision, average customer bills will increase by 5.6% in 2026-2027 (or by around $61 on average), including 4.1% inflation this represents a 9.9 % increase (or around $109 for 2026-27). Prices will then increase by 5.4 per cent or about $70 on average (excluding inflation from 2027-28). This equates to a total increase of around 27 per cent before inflation over the five-year period.
This is lower for renters, with the typical household bill increasing 2.1% per cent or $11 (excluding inflation) in 2026-27. Prices will then increase 1.8 per cent or $10 on average (excluding inflation and price adjustments) from 2027-28.
Ms Murdoch said, "we are also pleased that support for customers experiencing financial hardship will be significantly strengthened with $400,000 per year allocated helping more than 1,000 customers annually."
“Consistent with our deliberative forum recommendations and to better reflect customer needs while also encouraging efficient water use, volumetric water tariffs will increase on average by 2.1% in 2026-27 with the remaining charges up to 5.6% of the total bill spread across water and wastewater fixed charges. This will lead to fairer bills for tenants, larger households, and small businesses."
“Developers will also contribute their fair share to growth, with New Customer Contributions increasing to $7,611 per lot, excluding inflation; reflecting the one-off financial contribution toward works that are required to service new developments. We have also introduced a small-scale development charge for three lots or less of $638 per lot.
“Every dollar is focused on maintaining affordability while investing responsibly to support our region’s future.”
Ms Murdoch expressly thanked the thousands of customers who provided feedback throughout the price submission process including members of a deliberative panel who met over five full days to consider key elements of the price submission.
North East Water will provide customers with clear, year-by-year information about updated fees and charges before the new prices take effect on 1 July 2026.