Melbourne Water has announced a price freeze following a huge public backlash following its attempts to recoup $306 million in lost funds through a $88 per year per customer price hike.

 

The price hike was a direct result of the beleaguered Wonthaggi desalination plant, which ongoing delay has contributed an ongoing price blowout in the project.

 

The State Government bowed to increased public pressure by forcing Melbourne Water to cancel its planned price hike that would have resulted in a 10 per cent increase starting from July.

 

However, it is not entirely clear how long it will take for customers who have been wrongly credited.

 

“We understand that customers are concerned about the over recovery of desalination funds in 2011-12 to 2012-13 due to delays in the completion of the Victorian desalination plant, and are keenly interested in how this money will be returned,” the company said in a statement last week.