North East Water's proposed rise in customer fees for water and sewerage services to North East communities over the next five years are on track to be approved and take effect from 1 July this year.

The Essential Services Commission (ESC) released its draft decision last week and said it was "largely satisfied" NEW's proposed price increases are needed to meet customer expectations and invest in infrastructure and it accepts forecast capital expenditure.

However, the commission has proposed reducing NEW's business’ operating expenditure from $506.4 million to $490.7 million, and also requested more information and consultation about proposed new customer contribution charges.

ESC chairperson and commissioner Gerard Brody said NEW must reconsider these aspects of its proposal, which impact customer bills.

Under NEW's pricing proposal, bills for owner-occupiers would increase by 5.5 per cent each year, before inflation - an increase of $61 in 2026-27, bringing the average annual bill to $1158.

Bills for renters would increase by two per cent each year, before inflation - an increase of $10 in 2026-27, bringing the average annual bill to $519.

The draft decision allows NEW to invest $280 million in water and sewerage infrastructure so it can continue to provide clean and safe drinking water.

NEW has proposed increasing support for low income and vulnerable customers.

NEW must submit a response to the commission’s draft decision and provide an updated financial model by 1 May this year.

NEW managing director Jo Murdoch said the organisation welcomes the draft decision and is reviewing it in detail and "will provide the ESC requested additional information and updated modelling as part of this process".

"We thank the thousands of customers who have provided valuable insights and feedback to inform the development of our submission over the past two years," she said.

Ms Murdoch said a public consultation period is now open, providing customers and community members the opportunity to review the draft and offer feedback direct to the ESC until 1 May, via the Engage Victoria website.

There will also be a public forum on Monday, 27 April at 5.30pm at the North East Water Wodonga office.

The ESC is to publish a final decision and determination in June 2026, with new prices to take effect from 1 July 2026.

NEW provides water and sewerage services to approximately 120,000 people in 39 towns throughout the North East - it's service area includes Wodonga and Wangaratta and is bound by Corryong, Yarrawonga, Benalla and Dartmouth.