The DEC of water and sewerage infrastructure in Victoria is projected to grow from $2.1 billion in 2011 to $3.3 billion in 2031, an increase of 51 per cent. The Audit identified that 353 GL of water was supplied to greater Melbourne in 2011 and 1646 GL to other regions. Sewage collected in 2011 comprised 363 GL in greater Melbourne and 136 GL in other regions.
The highest projected growth in water and sewerage DEC is in greater Melbourne, with an increase of 60 per cent to $2.2 billion by 2031. In the other regional areas DEC is projected to grow by 35 per cent to a little over $1 billion in 2031.
It is important to note that water and sewerage services have historically been under-priced, particularly in rural and regional areas, and that this potentially leads to an understatement of DEC, which is derived from National Water Commission data.
In regional areas, under-pricing of water and sewerage services means that the income derived from water and sewerage infrastructure falls below the level needed to fund renewal of assets.