Edition 1.pdf - Yarra Valley Water

PRICESPRICING HANDBOOK 2013/14EDITION 1JULY 2013

1. About This Handbook ____________________________________________________________________________ 51.1 Intended audience ________________________________________________________________________________ 51.2 Terms, acronyms and abbreviations __________________________________________________________________ 51.3 References _____________________________________________________________________________________ 62. Introduction ____________________________________________________________________________________ 72.1 Price regulation __________________________________________________________________________________ 72.2 Price Determination _______________________________________________________________________________ 72.3 Business Characteristics ___________________________________________________________________________ 73. Principal Charges ______________________________________________________________________________ 103.1 Water supply ___________________________________________________________________________________ 103.2 Sewerage _____________________________________________________________________________________ 113.3 Recycled Water (supplied via a third pipe) _____________________________________________________________ 123.4 Trade Waste ___________________________________________________________________________________ 133.5 New Customer Contribution (NCC) __________________________________________________________________ 163.6 Charges Yarra Valley Water Collect on Behalf of Others _________________________________________________ 184. Miscellaneous Products and Services ______________________________________________________________ 204.1 Price Methodology _______________________________________________________________________________ 204.2 Land Development Products _______________________________________________________________________ 204.3 Property Development Products ____________________________________________________________________ 214.4 Potable and Recycled Water Meter Products and Connection Services ______________________________________ 224.5 Potable and Recycled Water – Large Water Service Connection, Valve and Hydrant Insertion ____________________ 244.6 Potable and Recycled Water – Other Products _________________________________________________________ 254.7 Customer Information Request Products ______________________________________________________________ 264.8 Other Products __________________________________________________________________________________ 274.9 Restricting or Restoring a Water Supply (for non-payment) ________________________________________________ 294.10 Freedom of Information (FOI) Charges _______________________________________________________________ 294.11 Recycled Water (non-residential) ____________________________________________________________________ 304.12 Chargeable Works _______________________________________________________________________________ 305. Hardship schemes and Concessions ______________________________________________________________ 31pricing handbook 2013/14 3

5.1 Hardship Policy _________________________________________________________________________________ 315.2 Customer Support _______________________________________________________________________________ 315.3 Hardship Programs ______________________________________________________________________________ 325.4 Government assistance schemes and rebates _________________________________________________________ 335.5 Pensioner/Concession Cardholder __________________________________________________________________ 334 pricing handbook 2013/14

1. About This HandbookThis Handbook provides a complete list of Yarra Valley Water’s standard products, services and prices.• Section 2 provides a brief overview of pricing specifically focusing on Yarra Valley Water’s function as a water andsewerage service provider and the roles of the Essential Services Commission (ESC) and the Victorian Government.• Section 3 outlines the charges for Yarra Valley Water’s principal regulated services. Regulated services are thoseprescribed and declared services listed in the Water Industry Regulatory Order 2012 where the Essential ServicesCommission has the power to regulate price, standards and conditions of service and supply. For Yarra Valley Water,these services include potable and recycled water services, sewerage services, connection services and services to whichdeveloper charges apply.• Section 4 outlines the charges for Yarra Valley Water’s miscellaneous services.• Section 5 provides information on Yarra Valley Water’s Hardship Schemes and Concessions.We have endeavoured to ensure that all information presented is current and accurate. New products, services and prices may beintroduced at any time during the year. It is therefore advisable to check the currency of information with Yarra Valley Water byvisiting the web site at www.yarravalleywater.com.au.1.1 Intended audienceThis Handbook has been compiled for the use of Yarra Valley Water’s customers, staff and contractors/partners.1.2 Terms, acronyms and abbreviationsThe following terms and acronyms may be referred to in this handbook:BODBiochemical Oxygen DemandBOEBuild Over EasementCSAComplete Serving AdviceDEPIDepartment of Environment and Primary IndustriesDHDepartment of HealthDHSDepartment of Human ServicesDSPDevelopment Servicing PlanDTFDepartment of Treasury and FinanceEPAEnvironment Protection AuthorityESCEssential Services CommissionIFSIncremental Financing CostITDSInorganic Total Dissolved SolidsMWMelbourne WaterNAVNet Annual Valuepricing handbook 2013/14 5

NCCNew Customer ContributionSDCSewage Disposal ChargeSoOStatement of ObligationsSSSuspended SolidsTKNTotal Kjeldahl NitrogenYVWYarra Valley Water CorporationWIRO Water Industry Regulatory Order 20121.3 ReferencesThe following documents may be referred to in this Handbook:• Essential Services Commission Act 2001• Essential Services Commission – Yarra Valley Water Determination 1 July 2013 to 30 June 2018• Freedom of Information Act 1982• Statement of Obligations• Water Act 1989• Water Industry Regulations 2006• Water Industry Regulatory Order 2012• Yarra Valley Water, Hardship Policy• Yarra Valley Water, Customer Charter6 pricing handbook 2013/14

2. Introduction2.1 Price regulationThe metropolitan water industry is a regulated industry and is subject to the Essential Services Commission Act 2001 for pricing,customer service and comparative competition2.2 Price DeterminationOn 26 June 2013, the Essential Services Commission (ESC) made its determination on pricing for principle services and customerservice standards for a five year period commencing on 1 July 2013.In addition to its principal services, Yarra Valley Water provides a range of other services that are associated with prescribedservices. Prices for some of these products have been approved by the ESC while the prices of other products are set by YarraValley Water using the ESC’s pricing principles.2.3 Business CharacteristicsYarra Valley Water is the largest of Melbourne’s three retail water companies and provides water and sewerage services to morethan 1.7 million people. The total customer base is expected to grow at an average of 1.5% per annum.We commenced operations on 1 January 1995 and provides water and sewerage services within a defined geographic areacovering over 4,000 square kilometres across Melbourne’s northern and eastern suburbs. Yarra Valley Water is owned by theState Government of Victoria and operates commercially under a Board of Directors appointed by our shareholder. We operateunder the Water Act 1989.Table 1 Customer base as at June 2013RESIDENTIAL NON RESIDENTIAL TOTALWater 671,000 52,000 723,000Sewerage 633,000 47,000 680,000Within our district, Yarra Valley Water provides, constructs, operates, manages and maintains systems and services for:• supply of water• collection and transfer of sewage• collection and transfer of Trade Waste• treatment and disposal of sewage and trade waste• supply of recycled waterpricing handbook 2013/14 7

Yarra Valley Water has major contracts with Melbourne Water Corporation for the supply of bulk water and the treatment anddisposal of sewage. We also have strong operating relationships with key suppliers and contractors including those providing:• maintenance of water supply and sewerage systems• mechanical and electrical services• bill production and mail out• meter reading services• design and construct services• tapings and water connectionsTable 2 Key stakeholdersSTAKEHOLDERVictorian GovernmentDepartment of Environment andPrimary Industries (DEPI)Department of Treasury andFinance (DTF)Department of Health (DH)Essential Services Commission(ESC)Environment Protection Authority(EPA)Yarra Valley WaterBoard of DirectorsEmployeesUnionsMelbourne Water (MW)CustomersWelfare agencies and financialcounsellorsCommunity Advisory GroupCommunity and environmentalgroups and representativesDESCRIPTIONOur sole shareholderDEPI leads the Victorian Government's efforts to sustainably manage water resources andcatchmentsDTF monitors and reviews our financial performance on behalf of the Victorian GovernmentWe work with DH to ensure we meet drinking water quality standards and also consult with theDepartment on our financial hardship programs.The ESC. regulate price, standards and conditions of service and supply for the Victorian waterindustryWe work with the EPA to ensure that we comply with environmental standards.Our Board steers the direction of our Company and provides advice and assistance on keybusiness decisions.Our employees are the backbone of our business. They come from a wide range of disciplinesand work together to achieve our business objectives.Our union groups aim to protect the working rights of their membersOur wholesale water supply and sewerage collection and treatment services supplierOur customers comprise of residential, commercial and industrial individuals and groupsPeople and organisations who provide important financial advice and support to ourcustomers.The group represents a broad section of our community. It provides feedback on businessissues and customer concerns.We work with a number of community representatives to ensure that the community is involvedin the decision making process.8 pricing handbook 2013/14

STAKEHOLDERLocal GovernmentSuppliers and ContractorsProperty and land developersOther water retailersSavewater! TMDESCRIPTIONWe have 15 local government municipalities in our area. We work with local government todevelop strategies for servicing growth and sustainability.We have several key business partners who help deliver products and services to ourcustomersWe work with property and land developers to develop sustainable water supply and sewerageservice solutions in our service area.We work together with other water retailers on joint water initiatives for the benefit ofMelbourneThe alliance helps us to deliver water conservation initiatives to the community.pricing handbook 2013/14 9

3. Principal ChargesFor both residential and non-residential customers a two-part tariff structure is used for water, recycled water and seweragecharges. The total charge for each service comprises of a fixed service charge and a variable usage/disposal charge.Trade waste charges are structured in a similar manner to water supply and sewerage charges. They comprise of a fixed tradewaste contract fee which is based on the risk ranking of the discharger and variable charges based on the mass and volume oftrade waste being discharged.Yarra Valley Water also bills and collects Waterways and Drainage charges and the Parks charges on behalf of Melbourne WaterCorporation and the Parks Victoria respectively.3.1 Water supplyWater charges contribute to the cost of the harvesting, storage, treatment, transfer and delivery of potable water supplies.Since October 2004, a residential pricing structure has been in place to promote water conservation. The structure comprises of athree step block tariff to ensure water efficient customers are rewarded with lower bills. For water use above a specific level ofconsumption, a higher price will be paid. Block tariffs are widely regarded as the fairest and most effective way to price water toencourage conservation. They also recognise the need to provide water for essential domestic use at an affordable price.There are three block tariffs and the price increases as water usage increases. In each quarter, residential customers will pay$2.5970 per 1,000 litres for water use up to an amount equal to 440 litres times the number of days in the meter reading period.Any use in excess of this will be charged at $3.0469 per 1,000 litres up to 880 litres times the number of days in the period. Waterin excess of this will be charged at $4.5017 per 1,000 litres. The number of days in the meter reading period can vary between 85and 95 days.Non-residential customers pay a single volumetric charge for all water usage.Table 3 Water Service and Usage Charge for 2013/14Residential Water Service Charge ($/annum) 175.90Residential Water Usage - Block 1 (0-440 litres/day) ($/kilolitre)Up to approximately 40 kilolitres per quarterResidential Water Usage - Block 2 (441-880 litres/day) ($/kilolitre)Between approximately 40 kilolitres and 80 kilolitres per quarterResidential Water Usage - Block 3 (881 + litres/day) ($/kilolitre)More than approximately 80 kilolitres per quarter2.59703.04694.5017Non-residential Water Service Charge ($/annum) 285.51Non-residential Water Usage ($/kilolitre) 2.7985Charge ($)3.2 SewerageSewerage charges contribute to the cost of the collection, transfer, treatment and disposal of sewage discharged into the seweragesystem.10 pricing handbook 2013/14

3.2.1 Residential & Non-Residential Sewage Disposal Charge (SDC)For both residential and non-residential customers, the sewage disposed from a property is a calculated volume that is based onthe volume of water entering a property rather than directly measured, avoiding the impracticality of individually metering sewageflows. The calculation estimates the wastewater discharged from the toilet, bathroom, kitchen and laundry fixtures into thesewerage system. The SDC is a volumetric charge applied to the estimated sewage discharge from a property.A formula is used to calculate the volume of sewage being discharged to the sewer for an average customer in Yarra ValleyWater’s district. In relation to residential customers, the formula recognises that the proportion of water discharged to the sewervaries from month to month and with the level of water restrictions, attributable primarily to the amount of water being usedoutdoors. So in summer months less of the water entering a property is discharged to the sewer as this is the peak usage time forwatering gardens.Where customers are supplied with recycled water via a third pipe, they are not restricted in their outdoor use and thus theproportion of total water (potable plus recycled) entering a property and discharged into the sewerage system is less than otherproperties in times of restrictions. Separate seasonal indices apply to these properties.The formula for calculating the volume of sewage from residential properties is:VS R = VW x SF x DFWhere:VW is the volume of water supplied to the property (total of potable and recycled);SF is the seasonal factor derived by dividing the number of days in a meter reading period by the sum of the number of days whichfall within each particular month within the meter reading period multiplied by the relevant seasonal indexDF is the discharge factorTable 4 Seasonal Indices – Residential PropertiesMonthHouse with drinking andrecycled waterHouse with drinking water only*January 1.700 1.575 1.200February 1.700 1.575 1.200March 1.500 1.425 1.200April 1.200 1.175 1.100May 1.100 1.075 1.000June 1.000 1.000 1.000July 1.000 1.000 1.000August 1.000 1.000 1.000September 1.100 1.075 1.000October 1.200 1.175 1.100November 1.400 1.325 1.100December 1.500 1.425 1.200Unitpricing handbook 2013/14 11

Table 5 Discharge Factor – Residential PropertiesQuarterly Equivalent Volume of WaterLess than or equal to 125 kilolitres 0.9More than 125 kilolitres and less than or equal to 250 kilolitresMore than 250 kilolitres 0.45Discharge Factor0.9 less 0.0036 per kilolitre in excess of 125 kilolitresThe formula for calculating the volume of sewage from non-residential properties is:VS NR = (VW – VTW) x DFWhere:VW is the volume of water supplied to the property (total of potable and recycled);VTW is the volume of Trade Waste discharge from the propertyDF is the discharge factorNon-residential customers that are not required to have a trade waste agreement have their SDC calculated using the followingformula:VS NR = VW x DFWhere:VW is the volume of water supplied to the property (total of potable and recycled);DF is the discharge factor predetermined on the type of business (in most cases, 90%)Table 6 Sewerage Service and Sewage Disposal Charges for 2013/14Charge ($)Residential Sewerage Service Charge ($/annum) 343.90Residential Sewage Disposal Charge (SDC) ($/kilolitre) 2.0908Non-residential Sewerage Service Charge ($/annum) 535.20Non-residential Sewerage Disposal Charge (SDC) ($/kilolitre) 2.03003.3 Recycled Water (supplied via a third pipe)Recycled water charges contribute to the cost of treatment from class B or C to class A, storage and delivery of recycled watersupplies.Yarra Valley Water is committed to providing alternatives to potable water where practically and economically feasible and wherethe alternative is fit for purpose. In some areas, customers are supplied with class A recycled water for outdoor use and someindoor use (e.g. toilet flushing)Table 7 Recycled Water Service and Usage Charges for 2013/14Charge ($)Residential Recycled Water Service Charge ($/annum) 32.37Residential Recycled Water Usage ($/kilolitre) 2.2074Non-residential Recycled Water Service Charge ($/annum) 32.37Non-residential Recycled Water Usage ($/kilolitre) 2.639012 pricing handbook 2013/14

3.4 Trade WasteTrade waste charges contribute to the cost of collection, transfer, treatment and disposal of critical pollutants discharged by nonresidentialcustomers into the sewerage system.Trade waste is wastewater produced from the operations of industry and commercial businesses and is usually more contaminatedthan normal domestic sewage. It may contain chemicals, metals, high organic loads, fats, greases and detergents. The presence oflarge amounts of these substances in the sewerage system increases the risk of environmental damage and increases the costand risk associated with sewage treatment. Trade waste must be extensively treated at a sewage treatment plant before it can besafely recycled and/or disposed to the environment. Managing trade waste risk is a significant issue involving continual monitoringof discharges, education and assistance to customers.Trade waste charges are structured in a similar manner to water, recycled water and sewerage charges. They comprise of a fixedtrade waste contract fee which is based on the risk ranking of the customer and trade waste discharge fees, based on the massand volume of trade waste being discharged.Yarra Valley Water assigns all its trade waste customers a risk rank according to a risk rank algorithm which takes into accountspecific customer information and discharge characteristics including:• customer location relative to treatment plant• the volume of trade waste discharged• the nature of the customer’s business activity• the nature and quality of the customer’s trade waste• the customer’s compliance history, where available• risks to personal health and safety• risks to the sewerage system (transport or treatment)• risks to the quality of recycled water or bio solids from the sewerage system• risks to the environment.Yarra Valley Water may change a trade waste customer’s risk rank due to the customer’s changed circumstances and/or updatedinformation.3.4.1 Application Fee for Trade Waste AgreementsNew trade waste customers and existing customers wishing to vary their agreement, pay an application fee that contributes to thecost of assessing the impact of the trade waste discharge on the sewerage transfer and treatment systems.Table 8 Application Fees for Trade Waste Agreements for 2013/14Charge ($)Risk Rank 1 3,687.04Risk Rank 2 1,193.30Risk Rank 3 667.29Risk Rank 4 113.83Risk Rank 5 57.89pricing handbook 2013/14 13

3.4.2 Trade Waste Contract FeesAll trade waste customers pay an annual fee to cover the operational costs incurred in the regulation, maintenance andconsultation of trade waste customers. Customers are subject to a stepped fee based on their risk ranking, with highest riskcustomers paying the highest fees.Table 9 Trade Waste Contract Fees for 2013/14Charge ($)Risk Rank 1 ($/annum) 17,118.61Risk Rank 2 ($/annum) 15,170.37Risk Rank 3 ($/annum) 5,705.79Risk Rank 4 ($/annum) 1,711.07Risk Rank 5 ($/annum) 569.843.4.3 Trade Waste Discharge FeesDischarge fees for trade waste are related to the cost of treating the discharge and depend on the volume of trade waste(measured in kilolitres) and the mass of the pollutants contained within the waste (measured in kilograms).Category B trade waste customers are not subject to volumetric and load based trade waste charges.Table 10 Trade Waste Discharge Fees for 2013/14Charge ($)Volume ($/kilolitre) 1.0512Biochemical Oxygen Demand (BOD) ($/kilogram) 0.8213Suspended Solids (SS) ($/kilogram) 0.4780Total Kjeldahl Nitrogen (TKN) ($/kilogram) 2.2201Inorganic Total Dissolved Solids (ITDS) ($/kilogram) 0.03423.4.4 Trade Waste Time and Material Based ChargesTrade Waste charges on a time and material basis will apply to non-standard trade waste management and can include, but not belimited to, instances such as:• Trade Waste Locked Batch discharge management;Site visits by Yarra Valley Water’s trade waste officers can be required to check locked batch compliance prior todischarge. Please note that a minimum of two hours will be charged for each visit on any day. If visits are conducted on apublic holiday, Sunday rates will apply.• Trade Waste Stage 2 Non-Compliance ManagementA non-compliance process is implemented in instances where Trade Waste Dischargers do not comply with their legalrequirements either under the relevant legislation (Water Act 1989 and Water Industry Regulations 2006) or therequirements contained within their Trade Waste Agreement or Consent. This may range from (but not be limited to)sample non-compliance, where the Trade Waste discharge is adjudged not to comply with the conditions stipulated in theAgreement or Consent, to a customer not providing meter readings, sample results or maintenance or calibrationcertificates at the required frequency.The Trade Waste Stage 2 Non-Compliance Management process is implemented in instances where Trade Wastecustomers continue to have reoccurring non-compliance events after initial notice and warnings have been issued. Thisstage of non-compliance involves that the customer being requested to attend a meeting with Yarra Valley Water todiscuss reasons for the breach and actions taken or proposed to prevent recurrence. Please note that a minimum of two14 pricing handbook 2013/14

hours will be charged for any such meeting. Yarra Valley Water’s Officers will continue to take and analyse samples ofwaste during this period to ensure the non-compliance event is adequately managed both from the OH&S and from theAsset and Environmental perspective.Table 11 Time Based Charges for Trade Waste Batch Discharge, Variations and Non-Compliance Management for 2013/14Charge ($)Monday – Friday ($/hour) 149.14Saturday ($/hour) 196.21Sunday ($/hour) 261.633.4.5 Food Waste Disposal ChargesFood Waste charges apply in respect of the discharge of food waste not attracting other trade waste charges. Food waste includesany matter, whether water borne or not, consisting solely or partly of food, food particles or food scraps, which had constituted partof or had been generated during production of a meal other than on residential premises or residential property.Table 12 Food Waste Charges for 2013/14Health Care Institutions (per bed per annum)Charge ($)Charge per bed 52.34Accommodation Premises and Restaurants – Rating of food waste unit (per unit per annum)Greater than or equal to 180 watts and less than 400 watts 1,488.72Greater than or equal to 400 watts and less than 700 watts 7,623.74Greater than or equal to 700 watts and less than 1,500 watts 15,358.803.4.6 Other Trade Waste Charges (Miscellaneous products)3.4.6.1 Retention of Access to Trade Waste ServicesDisused trade waste treatment systems are a potential risk to Yarra Valley Water’s assets, systems and people if left unattended.Currently we permit property owners retain unused trade waste treatment systems rather than disconnect them from the seweragesystem upon payment of a Retention of Access to Trade Waste Services Fee.Property owners may transfer liability for the treatment systems to any future tenant by requesting them to complete a Trade WasteApplication form and submit it to Yarra Valley Water. When the tenant possesses a Trade Waste Agreement with Yarra ValleyWater, the Retention of Access to Trade Waste Services Fee charged to the property owner will cease.When the tenant vacates the site, the property owner is again presented with the choice to retain the treatment system and pay thefee, or disconnect the treatment system from the sewerage system.3.4.6.2 Asset Protection ChargeOccupiers of commercial and industrial premises must enter into a trade waste agreement or obtain a trade waste permit beforedischarging trade waste into the sewerage system. A condition of discharging trade waste for certain customers is an appropriatepre-treatment device installed in accordance with Yarra Valley Water requirements.Where it is impractical to install a pre-treatment device in an existing building, the customer has the option to pay the assetprotection charge and discharge untreated trade waste rather than install a pre-treatment device.3.4.6.3 Administering Variation RequestsVariations from the Trade Waste Standard may be requested by trade waste customers from time to time and this charge recoversthe cost to process these variations. The payment of the variation processing fee is independent of the outcome of the variationrequest.pricing handbook 2013/14 15

3.4.6.4 Administering Non-complianceA non-compliance process is implemented in instances where Trade Waste Dischargers do not comply with their legalrequirements either under the relevant legislation (Water Act 1989 and Water Industry Regulations 2006) or the requirementscontained within their Trade Waste Agreement or Consent. This may range from (but not be limited to) sample non-compliance,where the Trade Waste discharge is adjudged not to comply with the conditions stipulated in the Agreement or Consent, to acustomer not providing meter readings, sample results or maintenance or calibration certificates at the required frequency.Yarra Valley Water will charge the non-compliance customer a fee to cover its costs in negotiating and managing the noncompliance.Laboratory analysis costs may be charged on an actual cost basis in addition to the Administering Non-compliancecharge.Table 13 Other Trade Waste Charges for 2013/14Charge ($)Retention of Access to Trade Waste Service (per annum) 614.69Asset Protection Charge (per annum) 515.26Administering Variation Requests 242.03Administering Non-compliance 92.543.5 New Customer Contribution (NCC)NCCs are an upfront payment that Yarra Valley Water charges when a customer builds or develops a property and connects toYarra Valley Water’s water, sewerage and/or recycled water network.Yarra Valley Water is responsible for providing shared infrastructure assets (including headworks, treatment plants, pumpingstations, trunk mains and sewers) with sufficient capacity for development in accordance with timing as shown on DevelopmentSequencing Plans. NCCs collected contribute towards the cost of providing the shared infrastructure.In addition to paying NCCs, developers are responsible for providing reticulation assets and the incremental financing costassociated with bringing forward the provision of shared infrastructure assets if they are required ahead of Yarra Valley Water’spredetermined timing as shown on the applicable DSP.3.5.1 Scheduled NCCsThe scheduled charge is applied on a ‘per lot’ basis which means that it may be levied on any connection of a new customer that isseparately titled or is, or can be individually metered.Yarra Valley Water has established three special charging areas and the boundaries of these areas are shown on plans availableon our internet site www.yvw.com.au. Development within these areas will attract the applicable special area charge.Development in all other areas will attract the standard charge.Table 14 Scheduled NCCs for 2013/14Standard – all lot sizesCharge ($) per lotWater 640.64Sewer 640.64Recycled Water 640.64Special charging area – New Urban Growth BoundaryLot size < 450 m 2Water 705.2116 pricing handbook 2013/14

Charge ($) per lotSewer 705.21Recycled Water 640.64Special charging area – New Urban Growth BoundaryLot size ≥ 450 m 2Water 1320.23Sewer 1320.23Recycled Water 640.64Special charging area – Greenvale / MicklehamLot size < 450 m 2Water 705.21Sewer 705.21Recycled Water 640.64Special charging area – Greenvale / MicklehamLot size ≥ 450 m 2Water 1320.23Sewer 1320.23Recycled Water 640.64Special charging area – Epping NorthLot size < 450 m 2Water 705.21Sewer 705.21Recycled Water 640.64Special charging area – Epping NorthLot size ≥ 450 m 2Water 1115.22Sewer 1115.22Recycled Water 640.643.5.2 Negotiated (Non-scheduled) NCCsAt any stage Yarra Valley Water may calculate and apply a negotiated NCC in lieu of the scheduled NCC if the cost of providinginfrastructure for a development varies materially from that assumed in the calculation of the scheduled NCC.The negotiated NCC will:• have regard to the incremental infrastructure and associated costs attributable to the connection• have regard to the incremental future revenues that will be earned from customers at that connection• be greater than the avoidable cost and less than the stand alone cost of the connectionpricing handbook 2013/14 17

3.5.3 NCC Charging UnitsThe ESC has given Yarra Valley Water the flexibility to choose the most appropriate charging units for NCCs and the units shouldreflect the amount of capacity needed to service the connection. Yarra Valley Water may use meter size as the charging unit forwater and recycled water and fixture units as the charging unit for sewer.3.5.4 Incremental Financing Costs (IFC)In addition to NCCs, Yarra Valley Water may calculate and levy an IFC equivalent to the financing cost associated with bringingforward the provision of shared infrastructure assets. The charge is calculated on the basis of:• the development-specific capital costs associated with connecting a customer or group of customers• the financing costs that may be attributable to bringing forward the timing of the provision of shared assets required toconnect to the existing network.The cost is calculated as:IFC = (1 – [1 / (1 + r) n ]) x cost of capital being provided sooner than planned.Where:r = estimated pre-tax WACC (currently 4.8%)n = the number of years the asset is required sooner than planned3.5.5 Negotiating FrameworkThe negotiating framework sets out the procedural and information requirements that are relevant to applying NCCs and applies toscheduled and negotiated NCCsThe negotiating framework is available on our internet site www.yvw.com.au.3.6 Charges Yarra Valley Water Collect on Behalf of Others3.6.1 Waterways and Drainage (Melbourne Water)There are three categories for charges to customersresidential - properties located within the Urban Growth Boundary (UGB) are charged flat raterural - properties located outside of the Urban Growth Boundary (UGB) but within the Waterways Management Districtare charged flat rateNon-residential properties are based on a property’s Net Annual Value (NAV) at 1990 levels of valuation and subject to aminimum chargeFor more information on the waterways and drainage charges visit www.melbournewater.com.auTable 15 Waterways and Drainage Charges for 2013/14Charge ($)Residential (per annum) 89.12Rural (per annum) 48.96Non-residential Minimum Fee (per annun) 102.48Non-residential Rate in $ NAV 0.01090418 pricing handbook 2013/14

3.6.2 Parks (Parks Victoria)Parks charges are based on a property’s NAV at 1990 levels of valuation and subject to a minimum charge.For more information on the parks charge visit www.parkweb.vic.gov.auTable 16 Parks Victoria Charges for 2013/14Charge ($)Minimum Fee (per annum) 68.47Rate in $ NAV 0.00412pricing handbook 2013/14 19

4. Miscellaneous Products and ServicesIn addition to providing water, sewerage and other prescribed services, Yarra Valley Water provides miscellaneous products andservices.Miscellaneous fees and charges reflect the retail price Yarra Valley Water will charge a customer directly for a product or service.For customer convenience, a range of plumbing and application products and services are also available through agency outlets(plumbing stores). Agency outlets independently set prices for these products and services to customers. The price charged atthese outlets may be different from those listed below.Yarra Valley Water may provide other services not listed in this handbook and these would be provided on an actual cost basis.4.1 Price MethodologyWhere miscellaneous products and services are associated with the provision of prescribed services, the prices are set using theESC pricing principles and recover the actual cost of providing the service calculated on the basis of the aggregate of:• direct third party or contractor invoice cost;• direct marginal internal costs, including labour, materials and transport costs; and• a fair contribution to overheads.4.2 Land Development Products4.2.1 Land Development ApplicationsLand development applications are made at various times through development – planning, whole estate and stage of estate.These applications result in information provided to the developer on the terms and conditions under which development canproceed including conditions relating to extending Yarra Valley Water’s services to a property or subdivision (an engineeringconsultant is usually engaged by the owner to undertake the design, construction and survey of the services).4.2.2 Pressure Sewer ContributionThis is a contribution levied on the developer of land that is to be serviced by pressure sewer pumping units. The contribution islevied at the time of development and reflects the cost of installing pressure sewer pumping units when building on a lotcommences.The charges reflect the cost to provide a “standard connection” and where it is determined at the time of connection that a “nonstandardconnection” is required, the owner will be required to contribute the difference between the actual cost and the “standardconnection” contribution.Table 17 Charges for land development products in 2013/14Charge ($)Preliminary Servicing Advice 902.00Complete Servicing Advice 2 lot development application 625.12Complete Servicing Advice 3 - 19 lot development application 820.11Complete Servicing Advice >19 lot development application 1,832.75Guided Application 223.0020 pricing handbook 2013/14

Charge ($)Estate Deed Application 1,832.75Stage Agreement Application 1,650.25Development Deed Application 1,832.75Single residential pressure sewerage (includes GST) 14,404.84Multi residential / commercial pressure sewerage (includes GST) 35,490.88Industrial pressure sewer (includes GST) 40,109.334.3 Property Development Products4.3.1 Connection / Disconnection ApplicationsA fee is charged to cover the cost of processing applications for the connection to the sewer and water supply systems.4.3.2 Pressure and flow informationWater pressure and flow information is used in the design of large general, fire hydrant and fire sprinkler service installations. Thistype of information is often required to be provided to councils by consultants.4.3.3 In-line booster pumpAn in-line booster pump may be required where water pressure or flow meets customer charter minimum standards but does notmeet the customer’s requirements.4.3.4 Private Water Main Service (Trunk Service)A private water main service may be approved where an existing property does not abut a water main. The supply to the customeris in accordance with the terms and conditions of a Temporary Supply by Agreement.4.3.5 Build Over Easement ApplicationAn approval is required to build any structure or carry out earthwork over an easement and/or within 1 metre of a Yarra ValleyWater asset.4.3.6 Plumbing Inspection FeesA Plumbing Industry Commission fee is for the inspection of recycled water plumbing.Development in close proximity to the Greenvale Reservoir is required to have mandatory inspections of plumbing works to ensurethere will be no leaching of sewage into the reservoir.Table 18 Charges for property development products in 2013/14Charge ($)Residential Sewer Connection / Disconnection Application 71.11Residential Water and Sewer Connection Application 71.11New house Connection Branch Application 102.59Industrial / Commercial Sewer Connection Application 102.59Industrial / Commercial Water Connection Application 268.77pricing handbook 2013/14 21

Charge ($)Industrial / Commercial Water and Sewer Connection Application 268.77Residential Large Water and/or Fire Service Application 268.77Pressure & Flow Information - Standard Application 439.14Pressure & Flow Information – Alternative Supply Application 548.85In-line Booster Pump Application 236.64Private Water Main Application 258.54Build Over Easement Application 83.70PIC fee for recycled water (includes GST) 389.01Mandatory Inspection Fee (Greenvale / Roxburgh Park etc.) 189.654.4 Potable and Recycled Water Meter Products and Connection ServicesA meter supplied by Yarra Valley Water must be installed at each property to measure the volume of water or recycled watersupplied to a property. The connection services may include connection, meter pit, pressure limiting valve, etc. to standard, multiunitand high rise developments.Table 19 Meter product and connection services charges for 2013/1420 mm Potable and Recycled Water Meter Products and Connection ServicesCharge ($)New Estate Drinking Water Connection 228.44New Estate Recycled Water Connection 316.26Drinking / Recycled Water Service Connection 168.46Supply and Install Service Pipe (includes excavation) – per metre (short) 71.21Supply and Install Service Pipe (includes excavation) – per metre (long) 52.37Supply and Install Meter Assembly 99.70Supply Drinking / Recycled Water Meter 140.12Install Drinking / Recycled Water Meter 60.73Supply & Install Single Meter Pit 103.75Supply & Install Dual Meter Pit 142.79Install Drinking / Recycled Water Meter Hi Rise 89.45Install Drinking / Recycled Water Meter Multi 73.26Supply & Install Pressure Limiting Valve 202.0525 mm Potable and Recycled Water Meter Products and Connection ServicesDrinking / Recycled Water Service Connection 257.55Supply and Install Service Pipe (includes excavation) – per metre (short) 172.58Supply and Install Service Pipe (includes excavation) – per metre (long) 67.18Supply and Install Meter Assembly 125.10Supply Drinking / Recycled Water Meter 162.23Install Drinking / Recycled Water Meter 117.8122 pricing handbook 2013/14

Charge ($)Supply & Install Single Meter Pit 129.78Supply & Install Dual Meter Pit 155.81Install Drinking / Recycled Water Meter Hi Rise 106.29Install Drinking / Recycled Water Meter Multi 90.09Supply & Install Manifold 522.6932 mm Potable and Recycled Water Meter Products and Connection ServicesDrinking / Recycled Water Service Connection 502.62Supply & Install Service Pipe (includes excavation) – per metre 146.56Supply Drinking / Recycled Water Meter 456.70Deliver Drinking / Recycled Water Meter, Dirt Box & Valve 184.60Deliver Drinking / Recycled Water Meter, Dirt Box & Valve Multi 192.80Install Drinking / Recycled Water Meter 855.19Supply & Install Manifold 602.7940 mm Potable and Recycled Water Meter Products and Connection ServicesDrinking / Recycled Water Service Connection 584.15Supply & Install Service Pipe (includes excavation) – per metre 146.56Supply Drinking / Recycled Water Meter 596.17Deliver Drinking / Recycled Water Meter, Dirt Box & Valve 266.03Install Drinking / Recycled Water Meter 994.41Supply & Install Manifold 712.1750 mm Potable and Recycled Water Meter Products and Connection ServicesDrinking / Recycled Water Service Connection 624.23Supply & Install Service Pipe (includes excavation) – per metre 146.56Supply Drinking / Recycled Water Meter 1,037.34Supply & Deliver Magflow Meter 4,678.37Deliver Drinking Water Meter, Dirt Box & Valve 287.54Deliver Recycled Water Meter, Dirt Box & Valve 349.69Install Drinking / Recycled Water Meter 1,164.37Supply & Install Manifold 880.5080 mm Potable and Recycled Water Meter Products and Connection ServicesDrinking / Recycled Water Service Connection 2,184.85Supply & Install Service Pipe (includes excavation) – per metre 414.43Supply & Deliver Drinking Water Meter, Dirt Box & Valve 1,926.42Supply & Deliver Recycled Water Meter, Dirt Box & Valve 2,483.18Supply & Deliver Magflow Meter 4,938.35Install Drinking / Recycled Water Meter 2,010.54100 mm Potable and Recycled Water Meter Products and Connection ServicesDrinking / Recycled Water Service Connection 2,144.23pricing handbook 2013/14 23

Charge ($)Supply & Install Service Pipe (includes excavation) – per metre 414.43Supply & Deliver Drinking Water Meter, Dirt Box & Valve 2,304.22Supply & Deliver Recycled Water Meter, Dirt Box & Valve 2,780.39Supply & Install Aqua Stop 2,074.59Supply & Deliver Magflow Meter 5,225.11Install Drinking / Recycled Water Meter 2,140.71150 mm Potable and Recycled Water Meter Products and Connection ServicesDrinking / Recycled Water Service Connection 3,098.59Supply & Install Service Pipe (includes excavation) – per metre 481.39Supply & Deliver Drinking Water Meter, Dirt Box & Valve 5,217.82Supply & Deliver Recycled Water Meter, Dirt Box & Valve 5,217.82Supply & Install Aqua Stop 2,213.88Supply & Deliver Magflow Meter 5,900.77Install Drinking / Recycled Water Meter 3,464.21225 mm Potable and Recycled Water Meter Products and Connection ServicesDrinking / Recycled Water Service Connection 5,104.34Supply & Install Service Pipe (includes excavation) – per metre 1,218.01Supply & Deliver Drinking Water Meter, Dirt Box & Valve 6,227.78Supply & Deliver Recycled Water Meter, Dirt Box & Valve 6,415.82Supply & Deliver Magflow Meter 7,760.29Install Drinking / Recycled Water Meter 11,873.464.5 Potable and Recycled Water – Large Water Service Connection, Valve and HydrantInsertionA large water service connection is provided via a tee insertion from Yarra Valley Water’s main to a property. Divide valves andhydrants can be provided at customers request to provide alternative supply. These insertions are organised by Yarra Valley Waterand the work is undertaken by our installation contractor.A single detector check valve is installed on a fire service to detect any non-fire-related usage.Table 20 Valve and Hydrant Insertion Charges for 2013/14Charge ($)Supply and Install 80mm Divide Valve 1,743.43Supply and Install 100mm Divide Valve 1,784.67Supply and Install 150mm Divide Valve 1,903.35Supply and Install 225mm Divide Valve 3,680.22Supply and Install 250mm Divide Valve 4,073.47Supply and Install 300mm Divide Valve 4,209.35Supply and Install 100mm Fire Plug (hydrant) 4,163.9024 pricing handbook 2013/14

Charge ($)Supply and Install 150mm Fire Plug (hydrant) 4,526.04Supply and Install 225mm Fire Plug (hydrant) 6,113.91Supply and Install 300mm Fire Plug (hydrant) 8,175.36Supply and deliver 80mm SDCV with 20mm bypass meter / rolled grooved 1736.61Supply and deliver 100mm SDCV with 25mm bypass meter / rolled grooved 1,893.78Supply and deliver 150mm SDCV with 25mm bypass meter / rolled grooved 2,923.014.6 Potable and Recycled Water – Other ProductsThese charges relate to services that may be common to multiple service sizesTable 21 Other product charges for 2013/14Charge ($)Tap Test – Multi Lot 8.20Tap Test – Multi Story 16.40Remote Meter Upgrade 297.40Supply & Install Manifold Connection 195.24Install Meter Lock 21.59Paint Meter (32mm to 150mm) Recycled 81.75Lost Point 212.88Water Service Installation Excavation 548.35Water Service Connection Excavation less than and including 50mm 548.35Water Service Connection Excavation greater than and including 80mm 998.65Water Service Disconnection Excavation 336.98Water Service Disconnection less than and including 50mm 195.08Water Service Disconnection greater than and including 80mm 998.65Cancellation Fee less than and including 50mm 263.91Cancellation fee greater than 50mm 752.88Labourer – per hour 107.86Licenced Plumber – per hour 116.22Sub-Contractor Services – per unit 14.53Sundry Materials – per unit 14.53Extra Over for afterhours less than and including 50mm 960.69Extra Over for afterhours greater than 50mm 1055.03Road Opening / Hard Surface 1,619.80Site & Safety Management – Local Roads / Other as per Melways 146.56Site & Safety Management – Major & Collector Roads as per Melways 816.22Site & Safety Management – Primary & Secondary Roads as per Melways 1,351.93pricing handbook 2013/14 25

4.7 Customer Information Request Products4.7.1 Property Sewerage PlanA plan showing internal property sewerage drains. When changes are made to the internal sewerage pipes a new plan must beprovided to Yarra Valley Water.4.7.2 Property Asset PlanA plan showing the location of Yarra Valley Water assets.4.7.3 Sewer Depth & Offset PlanA plan showing the size, location and calculated depth of the sewer mains.4.7.4 Information statementsVendors of property in Yarra Valley Water’s area are required to provide potential purchases with an information statement fromYarra Valley Water prior to contract signing under the Sale of Land Act 1962 (section 32 (2)(b)). This statement is to detail anyencumbrance affecting the land (excluding those shown on land titles), works required to be carried out, matters outstanding andany relevant rate or charge.4.7.5 Billing search feeUnder the ESC Customer Service Code, Yarra Valley Water is required to provide the customer’s account and usage history for thepreceding 3 years and not charge a fee. Where a customer requests account information that is more than 3 years old we willcharge a search fee to retrieve and provide the information.4.7.6 Meter testIf a customer disputes the accuracy of a water meter reading a fee is imposed to test the meter. Meter testing can be carried out byeither an onsite comparison test or offsite by an independent NATA accredited laboratory to a nationally approved standard. Wewill provide you with the results of the test within five working days of its completion.If the test shows that the meter is not meeting standards specified in Yarra Valley Water’s Customer Charter, we will replace themeter and refund any amount you may have been overcharged. If the test shows that the meter was working accurately, you will berequired to pay the test fee.4.7.7 Flow testAs a Yarra Valley Water customer, we will ensure that you have a flow of water to your meter equal to or better than the minimumindicated for your size in the table below.There may be unusual circumstances when we are unable to supply you with a minimum flow. These times may include droughts,emergency interruptions, or planned interruptions, during high demand periods on very hot summer days and during fireemergencies. Where practical we will advise you in advance.If you believe your flow rate does not meet the minimum standard, you can test your flow rate by timing how long it takes to fill a 10litre bucket at the tap adjacent to your water meter.The following table indicates how long this should take if your meter is either 20 or 25 mm in diameter. To check the size of yourmeter, look at the serial number printed near the dials. Each serial number begins with M (metric), followed by a letter A, B, C or D.A=20mm and B=25mm.26 pricing handbook 2013/14

Table 22 Minimum flow ratesSize of your meter (millimetres) 20 25Minimum flow rate (litres per minute) 20 35Time to fill a 10 litre bucket 30 secs 17 secsAlternatively, you can call us on 132 762 and we will send out a Maintenance Officer to test your water service. If the testestablishes you are receiving equal to or more than the minimum flow you will be charged the cost for the test.If the flow rate is below the minimum rate we will take action to rectify the problem where the problem is found to be up to the outlet(customer side) of the water meter. You are responsible for any problems beyond the meter on your property.If you are supplied from a privately water main service (trunk service), you will have to pay for the full cost of repairs to any servicepipes between Yarra Valley Water’s water main and the meter.Table 23 Customer Request Product charges for 2013/14Charge ($)Property Asset Plan 30.34Property Sewerage Plan 30.34Sewer Depth and Offset Plan 36.19Information Statement 20.83Billing Search Fee (per year of information requested that is more than 3 years old) 43.31Special Meter Read 32.03Meter test fee (20mm and 25mm meters) – where a comparison test is carried out 142.48Meter test fee (20mm and 25mm meters) – where customer requests an independent NATA accreditedlaboratory test339.02Meter test fee (greater than or equal to 32mm meters) 702.80Flow test charge 142.484.8 Other Products4.8.1 Fire Service ChargeAn annual charge per fire service applied to non-residential properties provided with a fire service.4.8.2 Fire Hydrant Usage PermitA customer who wishes to draw water from a fire hydrant in Yarra Valley Water’s area must obtain a Fire Hydrant Usage Permit.4.8.3 Unchlorinated WaterSome of our customers are remote from water reticulation mains and are provided with a water supply direct from Melbourne Wateraqueducts. This water is untreated and is intended for non-potable purposes.4.8.4 Kinglake Sewerage ChargeA charge levied on Kinglake customers in lieu of the sewerage service charge and sewage disposal charge.pricing handbook 2013/14 27

4.8.5 Backlog Connection ContributionBacklog Sewerage is a term used to describe a sewerage system that is provided to service properties or areas of Melbournewhich are not connected to a traditional reticulation sewerage service. A contribution fee will be charged to connect to a Backlogsystem and if requested can be paid as an annuity over 20 years.4.8.6 Water Carter ManagementEach time a water carter takes water from the Yarra Valley Water system, they will pay a fixed Administrative Service Fee and avariable Supply Service Fee based on the volume of the water carter’s truck.Table 24 Other Product Charges for 2013/14Charge ($)Metered Fire Service (Without Sprinkler System) 40.07Unmetered Fire Service (Without Sprinkler System) 118.20Metered Fire Sprinkler Service Fee 339.19Unmetered Fire Sprinkler Service Fee 987.01Fire Hydrant usage permit for commercial customers (annual) 242.32Unchlorinated Water (per KL) 2.4282Kinglake Sewerage Charge (per annum) 573.88Backlog Connection Contribution 1,500.00Water Carter Administrative Service Charge (per fill)0 8.59Water Carter Supply Service Charge – 1.0 to 1.99 kilolitre vehicle capacity (per fill) 2.80Water Carter Supply Service Charge – 2 to 2.99 kilolitre vehicle capacity (per fill) 5.60Water Carter Supply Service Charge – 3 to 3.99 kilolitre vehicle capacity (per fill) 8.40Water Carter Supply Service Charge – 4 to 4.99 kilolitre vehicle capacity (per fill) 11.19Water Carter Supply Service Charge – 5 to 5.99 kilolitre vehicle capacity (per fill) 13.99Water Carter Supply Service Charge – 6 to 6.99 kilolitre vehicle capacity (per fill) 16.79Water Carter Supply Service Charge – 7 to 7.99 kilolitre vehicle capacity (per fill) 19.59Water Carter Supply Service Charge – 8 to 8.99 kilolitre vehicle capacity (per fill) 22.39Water Carter Supply Service Charge – 9 to 9.99 kilolitre vehicle capacity (per fill) 25.19Water Carter Supply Service Charge – 10 to 10.99 kilolitre vehicle capacity (per fill) 27.99Water Carter Supply Service Charge – 11 to 11.99 kilolitre vehicle capacity (per fill) 30.78Water Carter Supply Service Charge – 12 to 12.99 kilolitre vehicle capacity (per fill) 33.58Water Carter Supply Service Charge – 13 to 13.99 kilolitre vehicle capacity (per fill) 36.38Water Carter Supply Service Charge – 14 to 14.99 kilolitre vehicle capacity (per fill) 39.18Water Carter Supply Service Charge – 15 to 15.99 kilolitre vehicle capacity (per fill) 41.98Water Carter Supply Service Charge – 16 to 16.99 kilolitre vehicle capacity (per fill) 44.78Water Carter Supply Service Charge – 17 to 17.99 kilolitre vehicle capacity (per fill) 47.57Water Carter Supply Service Charge – 18 to 18.99 kilolitre vehicle capacity (per fill) 50.37Water Carter Supply Service Charge – 19 to 19.99 kilolitre vehicle capacity (per fill) 53.17Water Carter Supply Service Charge – 20 to 20.99 kilolitre vehicle capacity (per fill) 55.9728 pricing handbook 2013/14

Charge ($)Water Carter Supply Service Charge – 21 to 21.99 kilolitre vehicle capacity (per fill) 58.77Water Carter Supply Service Charge – 22 to 22.99 kilolitre vehicle capacity (per fill) 61.57Water Carter Supply Service Charge – 23 to 23.99 kilolitre vehicle capacity (per fill) 64.37Water Carter Supply Service Charge – 24 to 24.99 kilolitre vehicle capacity (per fill) 67.16Water Carter Supply Service Charge – 25 to 25.99 kilolitre vehicle capacity (per fill) 69.96Water Carter Supply Service Charge – 26 to 26.99 kilolitre vehicle capacity (per fill) 72.76Water Carter Supply Service Charge – 27 to 27.99 kilolitre vehicle capacity (per fill) 75.56Water Carter Supply Service Charge – 28 to 28.99 kilolitre vehicle capacity (per fill) 78.36Water Carter Supply Service Charge – 29 to 29.99 kilolitre vehicle capacity (per fill) 81.16Water Carter Supply Service Charge – 30 to 30.99 kilolitre vehicle capacity (per fill) 83.964.9 Restricting or Restoring a Water Supply (for non-payment)Under section 141(1)(h) of the Water Act 1989, Yarra Valley Water can restrict a customer’s water supply for non-payment of anymoney due to Yarra Valley Water. A fee may also be imposed for removing a restriction device.Water supply is not restricted where customers can demonstrate that they are facing financial hardship and agree to negotiate apayment plan with Yarra Valley Water.Table 25 Restriction and restoration charges for 2013/14Charge ($)Water Restriction Fee 308.79Water Restoration Fee 169.58Meter is not accessibleActual cost4.10 Freedom of Information (FOI) ChargesAn application fee will by charged to customers requesting access to documents under the Freedom of Information Act 1982. Asearch fee for the identification of documents will apply on a per hour basis. Photocopying of these documents will be charged perA4 page.Table 26 FOI Charges for 2013/14Charge ($)Freedom of Information (FOI) Application Fee 25.10Freedom of Information (FOI) Search Fee (per hour or part of an hour) 20.00Photocopy of Documents (per A4 Page) 0.20pricing handbook 2013/14 29

4.11 Recycled Water (non-residential)Class B and C recycled water is supplied to some customers for irrigation and manufacturing purposes. The price is set on a caseby case basis using following pricing principles prescribed by the ESC in their determination:Recycled water prices should be set so as to:• have regard to the price of any substitutes and customers’ willingness to pay;• cover the full cost of providing the service (with the exception of services related to specified obligations or maintainingbalance of supply and demand); and• include a variable component.4.12 Chargeable WorksChargeable works are those works that can only be carried out by Yarra Valley Water’s maintenance contractor/partner due toeither the specialist skills required or the high risks to Yarra Valley Water’s assets associated with the work. The cost of providingthe works vary from site to site and the charge will be calculated in accordance with the ESC’s pricing principles.The charge is the aggregate of• direct third party or contractor invoice cost;• direct marginal internal cost, including labour, materials and transport costs;• a fair contribution to overheads30 pricing handbook 2013/14

5. Hardship schemes and ConcessionsYarra Valley Water offer a number of support programs to customers who are experiencing financial difficulties. These includeprograms for individuals experiencing short-term financial hardship as well as long term hardship customers on a low or fixedincome or pensioner concession customers. Yarra Valley Water can arrange a time to talk to you in more detail about any of theseprograms or your options on 1300 304 688.5.1 Hardship PolicyYarra Valley Water has in place a Hardship Policy, which defines our approach to supporting customers experiencing eithertemporary or permanent financial hardship. Our policy ensures all customers requiring additional support will be treated individually,with respect and sensitivity. Where possible we ensure the customers have one contact person at Yarra Valley Water to managetheir accounts. They will be shielded from restriction and further recovery action and be informed of all support available to them.5.2 Customer SupportEstablished in 2000, the Customer Support Team currently individually case manages over 5,000 customers. Customers arereferred from a number of areas including the Customer Contact Centre, Debt Management and YVW’s external debt collectionagency, all of whom have undertaken training to assist in the identification of potential hardship customers. Customers can alsoself-identify and/or can be referred directly from external financial counselling and welfare agencies. All customers in financialdifficulty can access the team directly on a free call number.The Customer Support Team has undertaken extensive training on a range of social and community issues including:• Drug and alcohol addiction• Gambling addiction• Depression• Cultural diversity issues• Domestic violence• Hardship awareness• Issues facing customers with disabilities• Government assistance schemes and concessions• Supporting vulnerable and high risk customersWe understand our residential customers cannot always afford the minimum payment amounts required to manage their account.Accordingly, we will negotiate arrangements based on what our customers can reasonably afford to pay. With our individual casemanagement approach, we will ensure that each customer’s needs are appropriately and sensitively addressed.pricing handbook 2013/14 31

5.3 Hardship Programs5.3.1 Early InterventionYarra Valley Water has made a commitment to early identification of customers in financial difficulty and to providing them withaccess to water, regardless of affordability. Hardship customers are where possible, provided one contact person to help addresstheir issues and are shielded from further recovery action (i.e. restriction and legal). They are also provided with information on allavailable support and programmes.5.3.2 Payment arrangements based on affordabilityPayment arrangements for customers experiencing financial hardship are based on what they can reasonably afford to pay and aretailored to meet the individual’s circumstances. This principle stands whether or not the repayment amount is sufficient to cover thecustomer’s current or past water accounts. The customer, or the financial counsellor representing the customer, has the right tonominate the repayment amount based on their capacity to pay.5.3.3 Kildonan United Care relationship – foundation of the programmeYarra Valley Water has a strong relationship with Kildonan United Care, to whom it refers customers requiring further assistance.Referrals are offered at no cost to its customers, and include home visits for customers who require additional support. Kildonanaddress the customers’ holistic issues and provide advice to customers on a range of issues including budgeting, managing allhousehold bills, Government Assistance Schemes, emergency housing, No Interest Loans, legal advice and general counselling.Yarra Valley Water also uses Kildonan to provide advice in the preparation of its hardship strategies and the assessment of theeffectiveness of its hardship programmes and practices through direct input and the facilitation of customer focus groups.5.3.4 Innovation payment schemes to assist customersOne of Yarra Valley Water’s key hardship initiatives is Arrange & Save, a loyalty programme aimed at encouraging and supportingcustomers having difficulty paying their water account. For every five payments made on time, Yarra Valley Water credits thecustomer’s account to the value of one payment. If the customer meets their payment arrangements for a six-month period, someof the long term debt may be written off. The programme is designed to assist customers who cannot afford the required minimumrepayment amount to reduce the arrears on their account.5.3.5 Face-to-face supportThe Customer Support Team undertakes home site visits to customers where we are having difficulty making contact, or if acustomer finds it difficult to leave their home. Site visits provide the opportunity to help customers complete various assistanceforms, explain Yarra Valley Water programmes and discuss affordable payment options, if appropriate. This program is part of ourapproach to assist our vulnerable customers in an environment that best suits their individual needs.5.3.6 Continuous ImprovementsThe hardship policy commits Yarra Valley Water to continual improvement of its programmes and practices for the hardshipcustomer segment including workshops and forums with financial counselling agencies in its districts and other key stakeholders,including the Department of Human Services, the Essential Services Commission, other utilities, councils, and EWOV. Yarra ValleyWater also undertakes customer focus groups within a range of culturally diverse customer segments to receive feedback on itsprogrammes. The hardship policy and associated procedures of Yarra Valley Water are reviewed at least annually to ensure theyare adequate to meet customer needs32 pricing handbook 2013/14

5.3.7 External assessmentThe approach and program adopted by Yarra Valley Water has received strong external, independent endorsement including:• Yarra Valley Water and Kildonan United Care relationship was recognised in 2003 and 2005 when it was awarded the“Large Business Award” for Victoria as part of the Prime Minister’s Awards for Excellence in Community BusinessPartnerships.• Essential Services Commission in its Final Decision – Review of Electricity and Gas Retail Codes – Energy Retail Codereleased in May 2004 stated “Best practice hardship policies and procedures will be implemented based on the YarraValley Water model.’• Consumer Law Centre of Victoria (CLCV) released its report in April 2006 on the implementation of residential hardshippolicies by Victorian water businesses. The Yarra Valley Water policy, program and approach is highlighted as the mostcomprehensive hardship assistance scheme in place. Yarra Valley Water is also mentioned in the report in a positive lighton the extent of our Charter, financial counselor’s feedback received by CLCV, our approach to engage stakeholders inpolicy development and the use of our Water Wise water conservation program.• State Government in May 2006 released its report on the outcomes and response to the Committee Inquiry into theFinancial Hardship of Energy Consumers. The inquiry was established by the Bracks Government in March 2005. Thereport included 20 recommendations and was generally very positive of the approach and programs we haveimplemented in support of customers in financial difficulty. One of the 20 recommendations was “that energy industrystakeholders consider the applicability of the Yarra Valley Water/Kildonan hardship program as a possible basis for futurecooperative programs to mitigate hardship.”5.4 Government assistance schemes and rebates5.4.1 Government assistance schemesFor those customers who meet the criteria, we have information on various Government Assistance Schemes, including the UtilityRelief Grant Scheme.5.4.2 Current Government Concessions and RebatesIf you hold either a Health Care, Pensioner Concession, Gold Repatriation, TPI or War Widow Card, you may be eligible forconcessions on your water bill. For further information or to find out whether you’re eligible for a concession, you can contact theDepartment of Human Services Concessions Information Line on 1800 658 521. The Department of Environment and PrimaryIndustries’ customer call centre on 136 186 can tell you about your options for government rebates, and answer your questions.You can also find information about rebates on the Department of Environment and Primary Industries’ website:www.depi.vic.gov.au.5.5 Pensioner/Concession CardholderGovernment concessions on water and sewerage charges increased to a maximum of $283.90 per year from 1 July 2013 or$141.90 for a property that is not sewered. The concession has been extended to include all eligible pensioners and Health CareCard holders, who will now receive 50 per cent off their total water and sewerage bill (both fixed service and volume charges), up to$283.90 per year. If you have recently become an eligible concession card holder please call 1300 304 688 with your details.The address for which you are claiming concessions must be your sole or principle place of residence and match the address onthe concession card. The name on the concession card must be the same as the account name in order to be eligible.pricing handbook 2013/14 33