Christmas Eve Lifeline: Greater Western Water Saved from Financial Meltdown
Greater Western Water has been thrown a last-minute financial lifeline by the Victorian Government after a botched billing system rollout triggered an estimated $150 million in losses and left the utility unable to cover its interest bill. The Treasurer, Jaclyn Symes, has issued a formal letter of financial support to keep the state-owned corporation operating as a going concern after a year of mounting cash flow problems and customer complaints.
Financial strain laid bare
GWW’s 2024-25 Annual Report reveals the utility recorded a negative operating cash flow of $191.7 million and an interest coverage ratio of -0.3, meaning it did not generate enough cash to service its debt costs during the year. The report also shows the value of current liabilities exceeded net current assets, underscoring how dependent the utility has become on the Treasurer’s support to avoid effective insolvency.
The report details that more than $36 million was spent on information technology in 2024-25, largely tied to stabilising the new Billing and Collections system introduced in May 2024. That system upgrade triggered widespread billing disruptions and data issues, driving both the financial hit and a surge in customer complaints.
Customers bearing the burden
Households and businesses across GWW’s service area have faced months of uncertainty, with tens of thousands of customers incorrectly charged while others had their personal information exposed in the fallout from the system changeover. The number of customers on flexible payment plans climbed to 28,981 in 2024-25, a 23 per cent increase in just one year, as bill stress intensified.
Payment-related complaints have also spiked, with the rate of payment issue complaints more than tripling to 0.68 per 100 customers over the year. Consumer advocates warn that the combination of billing errors, higher reliance on hardship support and ongoing cost-of-living pressures is placing additional strain on families in Melbourne’s west and north-west.
Political blame game
The Opposition has seized on the Christmas Eve release of the Annual Report, branding the Treasurer’s letter of support a “de facto bailout” and accusing the Labor Government of trying to bury bad news during the festive season. Shadow Treasurer Jess Wilson says Labor’s mismanaged billing upgrade has “driven one of Victoria’s largest water corporations to the financial brink,” arguing that GWW would likely be insolvent without the emergency backing.
Shadow Water Minister Tim McCurdy has also slammed the government’s stewardship of essential services, saying Victorians are “paying the price” for failures in basic service delivery. The Opposition claims the saga reinforces a broader pattern of Labor being unable to manage money or major projects, while calling for greater transparency around the bailout and full accountability for the IT rollout.
What’s next for customers
GWW has already flagged a multi-year program to stabilise its systems and restore normal billing cycles, backed by an enforceable undertaking that includes an estimated $130 million in customer redress. The utility says it remains committed to supporting affected customers through payment plans, bill credits and hardship assistance while it works to rebuild trust and financial stability.
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