Average charges imposed by Wannon Water will increase by $120, the biggest price spike in real terms out of the 16 water authorities listed in an Essential Services Commission (ESC) report released yesterday.

The jump represents a 13 per cent rise from $933 on average in the 2010/11 period to $1054 next financial year.

Wannon Water fell into the upper bracket of standard charges handed out by Victoria’s water authorities, according to the ESC report.

Water authorities in previously drought-stricken cities such as Ballarat and Bendigo have outlined smaller seven per cent and five per cent rises respectively.

Ballarat-based Central Highlands Water will charge the average household in its region $1075 next financial year and the Bendigo-based Coliban Water will charge $955 during the same period.

The release of the water charges data comes less than a week after the Australian Energy Commission claimed south-west electricity prices would soar by 20 per cent within the next three years.

Wannon Water managing director Grant Green said the organisation’s delivery of water to south-west households compared favourably to the cost of purchasing bottled water from retailers.

He said the organisation had bankrolled a number of projects including the expansion of the Warrnambool water reclamation plant, sewer pump station upgrades and the new south Warrnambool water main.

“Wannon Water is a not-for-profit corporation and its prices reflect the cost of operating and maintaining water and sewerage services including higher electricity charges and the cost of financing of new assets,” Mr Green said.

“The prices have been determined by the Essential Services Commission, which is the independent economic regulator that determines prices to be charged by Victorian water corporations.

“Wannon Water will, on average, deliver 430 litres of water daily to each residential customers’ property … this cost compares very favourably with the cost of purchasing a one-litre bottle of water daily from a retail outlet or a 600-millilitre soft drink.”

Regional Cities Minister Denis Napthine said the new pricing system was signed off by the Brumby government before its election defeat in November.

He said the Baillieu government would take a tougher approach on the financial management of water authorities.

“This is a classic case of Wannon Water passing on higher costs to south-west households, costs which were approved by the former Brumby government,” the South West Coast MP said.

Opposition Leader Daniel Andrews said the figures were at odds with the new state government’s promise to cut the cost of living.

“In terms of utility prices, in terms of water bills ... they’re a part of the cost of living and Ted Baillieu made it clear he would cut the cost of living,” Mr Andrews said.

asinnott@standard.fairfax.com.au