When land is sub-divided, the developer is required to arrange for the installation of water and sewerage services. In addition to meeting the costs of services to the subdivision the developer is required to pay a contribution towards the major water and sewerage assets that service the property.
New Customer Contributions (NCCs) are an upfront payment levied by us when a customer builds, develops or extends a property and connects to our water and/or sewerage systems.
Changes to our NCCs under Price Plan 2023-28
Our region is growing quickly, which requires a significant investment in new water and wastewater infrastructure to meet anticipated demand levels. To ensure upgrades to service new developments are funded equitably between new and existing customers, we have changed the way we charge our NCCs. Historically, our charges have been among the lowest in the state, but these changes will broadly bring us in line with other Victorian water authorities.
We consulted with industry on these changes as part of our Pricing Submission 2023-28 development process. They have also been approved by the Essential Services Commission, an independent regulator.
Key changes include:
- introduction of a new contribution charge for sewer
- the way we calculate review charges. This will ensure we can provide a more accurate upfront cost, rather than a fixed percentage. This charge will only be calculated to cover costs.
We've put together an information sheet which fully explains the changes.
► Developer charges - Information sheet July 2023 (PDF, 183kb)
We have standard water NCCs that are reviewed and approved by the Essential Services Commission on 1 July each year, which can be found in our Tariff Schedule available on our Fees and Charges page.
A NCC charge is for a standard residential equivalent occupancy and is applied to each new lot or occupancy where a:
- Separately titled lot is created; or
- Separate occupancy/premises that is or can be separately metered; or
- Specialised, non-sub-divisional or developments with higher demand or load requirements (case by case basis).
The standardised NCC charges are for one Residential Equivalent Tenement (RET). When an applicant requests a connection that is greater than the loading for one RET, or a redevelopment of an existing property increases the applicable RET for that property, we may apply an NCC charge greater than the standard charge. These changes of use are normally identified through the planning or consent to connect processes.
Non Standard NCCs
In instances where the standardised NCC charge will not apply, the NCC charge will be negotiated and our core pricing principles will be applied.
Existing serviced properties will generally be deemed by us to have already contributed NCC charges for one RET, unless specific information on that property indicates otherwise. Refunds are not payable by us where a development reduces the RET on a property.
Non Standard NCCs are applied in accordance with our approved New Customer Contributions Negotiating Framework (PDF), effective 2023-28.