The Victorian Government has announced it will refund customers who have left Melbourne Water and those with relatives who have since passed away who have been charged for the construction of the state’s Wonthaggi desalination plant.

 

"The Victorian Coalition Government believes those who have paid for the desalination plant in this financial year but are no longer Melbourne Water customers have a right to have that money refunded,” State Minister for Water Peter Walsh said.

 

The announcement comes after the State Government ordered a freeze to prices charged by Melbourne Water.

 

"Melbourne water retailers are currently establishing processes for the return of this money and I have asked for details to be finalised and on their websites by the end of July 2012," Mr Walsh said.

 

Mr Walsh said the cost of water would not increase for customers, with current 2011/12 water prices remaining the same for the 2012/13 financial year.

 

"The Coalition Government, together with the metropolitan Melbourne water retailers, have decided to return this money to customers as quickly as possible," Mr Walsh said.

 

"The independent Essential Services Commission (ESC) will conduct a review and consult with the public on the quickest and fairest way to return the money.

 

"In the meantime, from 1 July the price of water will not increase for the 2012-13 financial year for customers of City West Water, South East Water, Yarra Valley Water and Western Water."

 

Melbourne Water was due to commence payments of $1.8 million per day for the desalination plant on July 1 but delays to the construction of the plant means the consortium building will not receive the full payments until the plant is fully commissioned.