A Melbourne-based legal centre has flagged concerns about plans by Gippsland Water to raise its rates by two per cent following a submission to the Essential Services Commission.
Gippsland Water's proposal, part of a review into water companies across the state, revealed it was one of only a handful of service providers in Victoria planning to increase its annual rates over the five-year regulatory period.
According to the Consumer Action Law Centre, the increase means residential owner-occupier bills could increase by $40 in the first year.
Consumer Action Law Centre policy officer Patrick Sloyan said the rise could hurt the hip-pocket of vulnerable and low-income families and individuals across the region.
"In the first year there's a bit of a jump, it's just over $40 more each year for an owner-occupier and then in the following four years it raises by $8 each year," Mr Sloyan said.
"This is what Gippsland Water proposed to the ESC and the regulator has amended Gippsland Water's slightly and reduced the revenue requirement that Gippsland Water can make through water prices."
Earlier in the month community members had the opportunity to voice their concerns at a forum run by the Essential Services Commission.
"One lady jumped out and she was living on Centrelink payments. She's a Moe resident who owns her own home and she was really worried about the price rises and what that might mean for her," Mr Sloyan said.
"Obviously water bills are generally not the most expensive bills but in the scheme of perhaps rising council rates and energy prices it all adds up.
"We're concerned that these price rises will make life tough for individuals and families in the Valley. We would like prices to remain flat or falling if possible."
The ESC proposed reducing the price increase originally proposed by Gippsland Water in its draft decision which is still open for review.
Gippsland Water managing director Sarah Cumming said the rate rise was due to "rising electricity costs and a changing socio-economic climate".
"While these place upward pressure on bills, we have, and continue to work hard to find smarter ways of doing business so we keep prices stable," Ms Cumming said.
"Our customers depend on us to deliver safe and reliable water and sewerage services. As a state-owned and local water corporation, our submission only reflects the costs necessary to maintain a sustainable business."
A final decision on water rate prices will be released by the ESC in June.
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