Water management in Victoria

Victoria has undertaken several major construction projects to link state water supplies and to establish a statewide water market in preparation for the privatisation of Victoria's water.[12] The works included the Wonthaggi desalination plant built on the South Gippsland coastline at Wonthaggi, which was announced in June 2007, at the height of the crippling millennium drought when Melbourne's water storage levels were at 28.4%, a drop of more than 20% from the previous year. Lawmakers and bureaucrats were suddenly grappling with the frightening prospect that the city could run out of water. The cost of the plant was estimated to be more than $3 billion. The plant was completed in December 2012.[13] Because of the cost of producing water, it is intended to be a backup water source. The merit of the project has been questioned by three reports by the Productivity Commission and the National Water Commission, on the basis of the higher production cost of the plant. The ongoing costs of keeping the plant on standby is $608 million a year.[10]

Several pipelines have also been constructed in an effort to link regional systems to facilitate the trading of water. For example, the North–South Pipeline was completely in February 2010 to carry water from the Goulburn River to Melbourne's Sugarloaf Reservoir in times of need, and an interconnector pipeline connecting the Geelong-Ballarat region.

In Victoria, the Essential Services Commission  (ESC) is responsible for price regulation and setting service standards for water services under Part 1A of the Water Industry Act, the Essential Services Commission Act 2001 and the Water Industry Act’s Water Industry Regulatory Order. The legislative framework provides the ESC with powers and functions to make price determinations, regulate standards and conditions of service and supply, and require regulated businesses to provide information.

Consumer prices for water in and around the Melbourne metropolitan area are determined by the Essential Services Commission and, beginning 1 July 2021, the Commission approved maximum prices for a five-year regulatory period.

Following the Commission's determination, an annual tariff schedule is created for Melbourne Water. The schedule outlines the maximum prices Melbourne Water can charge its retailers for specific services, such as water delivery and sewage processing and the maximum prices it can charge consumers of waterways and drainage services.

Each year in June the Essential Services Commission confirms the prices to apply from 1 July for the 15 water businesses providing urban water and sewerage services to residential customers. They also publish estimates of household bills for water and sewerage.

Since 2016, water pricing has been based on the PREMO incentive mechanism, which focuses on five elements: performance, risk, engagement, management and outcomes. The PREMO framework seeks to link reputation and financial outcomes to the level of ambition in a water business’s price proposal. It also holds water businesses accountable for the actions and decisions they make and for delivering the service outcomes proposed.

Victoria's northern border follows a straight line from Cape Howe to the start of the Murray River and then follows the Murray River as the remainder of the northern border. On the Murray River, the border is the southern bank of the river, so that none of the water of the Murray belongs to Victoria. The border also rests at the southern end of the Great Dividing Range, which stretches along the east coast and terminates west of Ballarat. It is bordered by South Australia to the west and shares Australia's shortest land border with Tasmania. The official border between Victoria and Tasmania is at 39°12' S, which passes through Boundary Islet in the Bass Strait for 85 metres.[14][15][16]

Victoria contains many topographically, geologically and climatically diverse areas, ranging from the wet, temperate climate of Gippsland in the southeast to the snow-covered Victorian alpine areas which rise to almost 2,000 m (6,600 ft), with Mount Bogong the highest peak at 1,986 m (6,516 ft). There are extensive semi-arid plains to the west and northwest. There is an extensive series of river systems in Victoria. Most notable is the Murray River system. Other rivers include: Ovens River, Goulburn River, Patterson River, King River, Campaspe River, Loddon River, Wimmera River, Elgin River, Barwon River, Thomson River, Snowy River, Latrobe River, Yarra River, Maribyrnong River, Mitta River, Hopkins River, Merri River and Kiewa River. The state symbols include the pink heath (state flower), Leadbeater's possum (state animal) and the helmeted honeyeater (state bird).

The state's capital, Melbourne, contains about 70% of the state's population and dominates its economy, media, and culture. For other cities and towns, see list of localities (Victoria) and local government areas of Victoria.

Köppen climate types in Victoria

Victoria has a varied climate despite its small size. It ranges from semi-arid temperate with hot summers in the north-west, to temperate and cool along the coast. Victoria's main land feature, the Great Dividing Range, produces a cooler, mountain climate in the centre of the state. Winters along the coast of the state, particularly around Melbourne, are relatively mild (see chart at right).

Victoria's southernmost position on the Australian mainland means it is cooler and wetter than other mainland states and territories. The coastal plain south of the Great Dividing Range has Victoria's mildest climate. Air from the Southern Ocean helps reduce the heat of summer and the cold of winter. Melbourne and other large cities are located in this temperate region. The autumn months of April/May are mild and bring some of Australia's colourful foliage across many parts of the state.

The Mallee and upper Wimmera are Victoria's warmest regions with hot winds blowing from nearby semi-deserts. Average temperatures exceed 32 °C (90 °F) during summer and 15 °C (59 °F) in winter. Except at cool mountain elevations, the inland monthly temperatures are 2–7 °C (4–13 °F) warmer than around Melbourne (see chart). Victoria's highest maximum temperature of 48.8 °C (119.8 °F) was recorded in Hopetoun on 7 February 2009, during the 2009 southeastern Australia heat wave.[17]

The Victorian Alps in the northeast are the coldest part of Victoria. The Alps are part of the Great Dividing Range mountain system extending east–west through the centre of Victoria. Average temperatures are less than 9 °C (48 °F) in winter and below 0 °C (32 °F) in the highest parts of the ranges. The state's lowest minimum temperature of −11.7 °C (10.9 °F) was recorded at Omeo on 15 June 1965, and again at Falls Creek on 3 July 1970.[17] Temperature extremes for the state are listed in the table below:

Victoria is the wettest Australian state after Tasmania. Rainfall in Victoria increases from south to the northeast, with higher averages in areas of high altitude. Mean annual rainfall exceeds 1,800 millimetres (71 inches) in some parts of the northeast but is less than 280 mm (11 in) in the Mallee.

Rain is heaviest in the Otway Ranges and Gippsland in southern Victoria and in the mountainous northeast. Snow generally falls only in the mountains and hills in the centre of the state. Rain falls most frequently in winter, but summer precipitation is heavier. Rainfall is most reliable in Gippsland and the Western District, making them both leading farming areas. Victoria's highest recorded daily rainfall was 377.8 mm (14.87 in) at Tidal River in Wilsons Promontory National Park on 23 March 2011.[17]

• Average temperatures and precipitation for Victoria
• 
  Average January maximum temperatures:
  Victoria's north is almost always hotter than coastal and mountainous areas.
• 
  Average July maximum temperatures:
  Victoria's hills and ranges are coolest during winter. Snow also falls there.
• 
  Average yearly precipitation:
  Victoria's rainfall is concentrated in the mountainous north-east and coast.

• Melbourne Water