Melbourne Water Price Submission 2021 - Engagement Report - AWS
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Melbourne Water Price Submission 2021 Engagement Report
Price Submission 2021
Engagement Report
In this document
Executive summary 1 How customer insights shaped Community engagement 63 COVID-related engagement 87
Engagement program 4 3 the Price Submission
Customer outcomes
29
30
6 Community assessment of services
(2018-19) 64
8 Engagement objectives 88
Key insights shaping our Price Submission 6 Who we consulted and how 88
Impacts of COVID-19 on our engagement insights 9 Actions and investments to Community perception of waterways Matters we consulted on 88
deliver customer outcomes 36 (June 2018) 65
Key insights 90
Measuring performance and Water issues monitor (June 2019) 65
How we used these insights 91
ongoing reporting 41 Vision and values co-design workshop
Other matters 41 (March 2019) 66
Context 11
Community preferences and
1 Melbourne Water’s services and prices 12 willingness to pay research
References93
Essential Services Commission Guidance 13 (July 2019 to February 2020) 67
Melbourne Water’s engagement context 14 Retail water company engagement 43 Waterways and Drainage Deliberative
4 Pre-planning insights 45 Panel (November 2019 to April 2020)
Customer Outcomes Community
69
Customer Values Workshop 45
Deliberative Forum (April 2020) 71
Water and Sewerage Customer Council 46
Final public consultation
Engagement approach 17 Engagement Advisory Panel 51 (June to July 2020) 71
2 Engagement program 18 Regulatory Managers Forum 52
Customer representation 20
Engagement forums and methods 22
Direct services engagement 73
5
Waterways and drainage
customer engagement 55 7 Patterson Lakes 74
Koo Wee Rup–Longwarry Flood
Waterways and Drainage Protection District 81
Customer Council 56
Waterway diversion licence holders 81
Local government 59
Traditional Owners 61
Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 
Executive
Summary
Aboriginal Acknowledgement
Melbourne Water respectfully acknowledges Aboriginal and
Torres Strait Islander peoples as the Traditional Owners and
custodians of the land and water on which all Australians rely.
We pay our respects to Wurundjeri Woi wurrung, Bunurong and
Wadawurrung, their Elders past, present and future, as Traditional
Owners and the custodians of the land and water on which we
rely and operate.
We acknowledge and respect the continued cultural, social,
economic and spiritual connections of all Aboriginal Victorians.
We also acknowledge the broader Aboriginal and Torres Strait
Islander community and their connections with lands and waters,
and recognise and value their inherent responsibility to care for
and protect them for thousands of generations.
Melbourne Water acknowledges Aboriginal Victorians as
Traditional Owners and, in the spirit of reconciliation, we remain
committed to developing partnerships with Traditional Owners
to ensure meaningful, ongoing contributions to the future of land
and water management.
Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 1
Executive Summary Executive Summary
Executive summary
This report documents the engagement Our Price Submission 2021 (PS21) demonstrates a significant
step change in the way we plan our services and prices,
program undertaken to support the underpinned by an ambitious engagement program that
development of Melbourne Water’s placed our customers and community at the front and centre
Price Submission 2021 to the Essential of decisions. This report documents the engagement program
in detail, set out as follows:
Services Commission (ESC). It provides a
comprehensive account of our efforts to • Section 1 provides the context for our engagement
program, as guided by the ESC’s PREMO Framework and
develop a customer-focussed submission, Melbourne Water’s own customer-focussed commitments.
in accordance with the ESC’s guidance • Section 2 details our approach to engagement, following a
and our own continuous evolution as a three-stage process to engage customers early and deeply
customer-centric organisation. on topics of relevance to them. It outlines who we engaged
with, how and when, and what matters we engaged on.
• Section 3 provides an overview of the insights we heard
from different customer segments and how these were
brought together to shape key aspects of our Price
Submission, most notably our customer outcomes.
• Sections 4-7 document in detail the engagement we
undertook with each key customer segment, the insights we
gained and how they were used.
• Section 8 documents the additional engagement we
undertook in response to the implications of COVID-19.
In accordance with the ESC’s expectations, this
Price Submission 2021 Engagement Report provides detailed
explanation and justification for who we engaged with,
how and when we engaged, the matters we engaged on,
the views we heard through our engagement program and
how these views influenced our Price Submission.
Price Submission 2021 – Engagement Report | Melbourne Water 3
Executive Summary Executive Summary
Engagement program
We have learnt from and adapted our September 2020. Customers were involved early and throughout FIGURE 1 Snapshot of the breadth of our engagement program
the process, and provided with multiple opportunities to shape
engagement approach from our previous Price both the engagement program and key aspects of our Price
Submission 2016 to embrace the ESC’s new Submission. Who we engaged
PREMO regulatory model, delivering a deeper A variety of channels and forums were used to engage the Retail water companies Households and businesses Waterways and drainage customers
engagement form (towards collaboration), range of customer segments impacted by our Price Submission,
with broader content (towards performance including households and businesses, retail water companies,
local government, community groups and direct service
6 145+ 14
stewardship) and earlier timing (towards an customers. Other key agencies, including the Department of
retail water companies represented on the
Water and Sewerage Customer Council,
participants in 20 focus groups and 1 online panel members from local government, community
groups, statutory authorities and the
ongoing conversation). These changes reflect Environment, Land, Water and Planning (DELWP), Office of the which met 17 times
our desire to deepen our understanding of our Minister for Water, Consumer Advocate Groups and Traditional 3,753 development industry on the Waterways and
Drainage Customer Council, which met 13 times
customers and their preferences, enabling us
Owner groups, were provided with briefings at key stages.
7 residents and 535 businesses responded to 2 surveys
to improve the alignment between these and We ensured that our submission was informed by views
representative of the diversity of all Melburnians. Our community
participants in research on retail water
company customer values
testing investment preferences and willingness to
pay for services 26
online submissions from councils to inform
the services we deliver.
80+
research program used representative sampling and engagement waterway, drainage and flood protection services
approaches (such as online forums) to ensure views expressed • Regulatory Managers Forum established to explore
Our engagement program was designed to address four principles complex regulatory matters in depth
could be considered representative of the broader community. participants in 3 deliberative panels,
based on the ESC’s guidance: starting early to allow time for deep • Engagement Advisory Panel established to share including 2 held online Direct service customers
Participants were carefully selected to ensure representation community insights and advice from other retail
engagement, meaningful discussion and deliberation on specific
across different age cohorts, gender, location, level of education, water companies
topics; an agile and staged program we could adjust in response
6,351
• Waterway diversion customers
work status, and household size and ownership. We also targeted • Roadshows and information sessions to explain our
to customer interests and insights; and representative of our approach to risk, pricing, and capital and operating • Property owners in Patterson Lakes’ Quiet Lakes
harder to reach disadvantaged groups including people on lower expenditure and the Koo Wee Rup–Longwarry Flood Protection
customer segments and the broader community. visits and 228 subscribers to the
incomes, people who spoke another language at home or with Price Submission YourSay website
District
We commenced pre-planning for our engagement program parents, and people with a chronic illness or disability who might
throughout 2018, analysing existing customer insights data and otherwise find it hard to participate in engagement activities. Key agencies
seeking to understand the retail water companies’ experiences 1,500 A series of briefings were provided to state
with their recent price submissions. Our three-stage engagement people estimated to have been engaged at government, consumer advocates and Traditional
program formally began in February 2019 and concluded in 5 community festivals held across Melbourne Owners (Bunurong, Wadawurrung and
Wurundjeri Woi wurrung)
2,477
click-throughs on social media
February 2019 – May 2019 June 2019 – April 2020 April – September 2020
STAGE STAGE STAGE
1 2 3
Values & Preferences
Validation
focus areas & performance
• Analysed customer research insights • Shared information and • Customer and community review of
to set the scope of our engagement collaboratively explored issues customer outcomes, performance
program and customer involvement, identified in Stage 1 with our measures and key investment
and gain an initial understanding of Customer Councils. proposals.
customer sentiment and values.
• Undertook community research • Customer Council review of draft
• Established two Customer Councils, (focus groups and willingness to pay submission.
our primary forums for engaging with surveys) to understand preferences
• Additional COVID-19 related
our retail water company customers and test investment proposals aligned
engagement.
and our waterways and drainage to focus areas identified in Stage 1.
customers. Feedback helped to define service
levels and performance measures.
• Built our understanding of customer
values and areas of interest to explore • Continued refining customer
through our engagement program, outcomes and developing outputs
to inform initial drafting of customer and measures.
outcomes and to help identify topics
• Began to develop our investment
for community research undertaken
program.
in Stage 2.
4 Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 5
Executive Summary Executive Summary
Key insights shaping
our Price Submission
This report documents the insights we heard through our
engagement program. A high-level summary of these insights
and how they shaped our Price Submission is set out below.
HOW THESE INSIGHTS SHAPED HOW THESE INSIGHTS SHAPED
KEY INSIGHTS KEY INSIGHTS
OUR PRICE SUBMISSION OUR PRICE SUBMISSION
Customer Councils Community preferences and willingness to pay
Water and Sewerage • Seeking alignment with their own customer Customer Council insights shaped our customer Engagement activities: Waterways & Drainage community research The findings from our community preferences and
Customer Council (WSCC) outcomes, with a focus on affordability and outcomes and performance measures, and in the case Two separate research willingness to pay research helped inform decisions
• Overall support for an increase in service levels
price stability. of the WSCC, were used to ensure alignment with programs, one directly aligned about our investment program, particularly for
Engagement activities: (supported by 68 per cent of residential
• Clarity on long-term water security – customer outcomes in the retail water companies’ 2018 to waterways and drainage customers, 60 per cent of business customers). waterways and drainage services. Other inputs to our
Met 17 times plus Capex price submissions. investment decisions included our legislative and
Integrated Water Management (IWM) and services. Both programs
Roadshow and Opex • Overall willingness to pay 8 per cent more regulatory obligations and commitments in our key
system augmentation. They also helped identify focus areas for our included qualitative workshops
information session (residential customers) and 5 per cent more service strategies, which identify the challenges that
community preferences and willingness to pay research, and quantitative online surveys
• Support cost pass-through approach for with representative samples of (business customers). population growth, climate change and affordability
desalination water order. undertaken in Stage 2, and shape our investment
the population. • 15 per cent want to pay less due to affordability pose for our services.
program. In the case of the WDCC, this resulted in a
• Investments should support existing agreed moderate increase in the Waterways and Drainage concerns and perceived lack of value, 13 per The research was undertaken prior to the coronavirus
strategies, e.g. Melbourne Sewerage Strategy. Charge and in the case of the WSCC, our aim for stable cent want to pay the same amount. pandemic, and we acknowledge results may now differ
• Administrative/process-related matters, e.g. or declining bulk water and sewerage prices. • Support for maintaining current vegetation due to the economic impact on households. This further
performance incentives, tariff review, forecast programs. reinforces our approach to carefully balance
The WSCC also influenced our approach to specific
price path beyond five years, transparency on affordability with the uplift in service levels that
regulatory matters such as Guaranteed Service Levels, • Support for significantly increased level of
growth-related expenditure. customers were prepared to pay for.
our commitment to undertake a tariff review, and our service in the following areas:
approach to the capitalisation of Victorian Desalination
Plant security payments. – Litter
– Wetlands and estuaries
Waterways and Drainage • Increased investment is needed to reverse
decline in waterway health and meet Healthy – Land access
Customer Council (WDCC)
Waterways Strategy commitments – seeking • Support for increased level of service in the
Engagement activities: increase in Waterways and Drainage Charge following areas:
Met 13 times greater than 5 per cent.
– Stormwater harvesting and quality
• Prioritise the environment and the intrinsic – On water access
value of waterways.
– Flood preparedness and mitigation
• Climate change and urban development are key – Waterway restoration
concerns.
– Community involvement
• Highlight the long-term social, economic and
environmental benefits that increased
waterway health will bring to customers.
Price Submission community research
• Overall support for low-cost, high-value
initiatives
Community values • Willingness to pay $8 more on average
(excluding cost of desalinated water orders)
Engagement activities: • All four of Melbourne Water’s core services are We used community values insights to help shape our
• Best value would be offered by additional
highly valued and recognised for their benefits engagement program, draft our customer outcomes
• Qualitative and quantitative investment in:
to broader community and environment. and identify the focus areas to be explored further
community assessment of through our community preferences and willingness to – stormwater harvesting
services research • Core services of water supply and sewerage are
pay research. – sewerage system upgrades
the most valued and well regarded.
• Community vision and values – opening up access to pipetracks
co-design workshop • There is more to be done to improve waterway
condition and water quality.
• Waterways and Drainage
Community Deliberative • Stormwater capture and treatment is valued (as
Panel. a wise use of finite resources and for waterway
health benefits).
• Priority community values are: Environment and
sustainability, Reliability, Forward thinking, For
everyone, Innovation, Efficiency.
• Top three priorities identified by Waterways and
Drainage Deliberative Panel were: stormwater
harvesting, management of stormwater
pollution, and flood mitigation.
6 Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 7
Executive Summary Executive Summary
Key insights shaping Impacts of COVID-19
our Price Submission on our engagement insights
The final stage of our engagement program Matters we consulted on
KEY INSIGHTS
HOW THESE INSIGHTS SHAPED
OUR PRICE SUBMISSION was undertaken during the coronavirus An online Community Deliberative Forum received an overview
pandemic. Our final community deliberative of our final six customer outcomes, prices and service levels.
Community validation panels (one for waterways and drainage With this information in mind, the forum deliberated on three
proposals to keep bills as low as possible: price smoothing;
Engagement activities: • Provided a high level of support for customer These final community insights helped refine the services, and one to review our customer hardship assistance and related initiatives; and expenditure
Representative online
community deliberative panel,
outcomes and measures. wording of our customer outcomes and measures. We
will continue to collaborate with our local government
outcomes) and three-week public pauses/deferrals and price reductions. The forum endorsed these
• Reiterated emphasis on value of waterway proposals and reinforced support for our proposed price changes
broad public consultation on health.
partners on priority areas through our waterways and consultation on our draft proposals were
draft proposals via Price drainage programs. Overall, these insights validated our and six customer outcomes, despite the financial impacts of
Submission webpage. • Reiteration from local government for greater thinking and provided a degree of confidence in held online, during the COVID-19 ‘lockdown’ COVID-19.
investment in stormwater and recycled water, finalising our submission.
flood mitigation works, community education period. Feedback continued to emphasise Direct service customers in Patterson Lakes Quiet Lakes and the
and capacity building. the importance of our affordability-related Koo Wee Rup–Longwarry Flood Protection District were asked
outcome, ‘Bills kept as low as possible’, but for feedback on a proposed delay to the price and service increase
for at least the first year of our submission (i.e. continue with
State government and consumer advocacy groups also continued to strongly support all our current service levels and pricing), with the intention to revisit
• Recognition of extensive engagement program These insights were at the forefront of our minds as we
proposed customer outcomes. our approach in Year 2, subject to the impacts of the pandemic
In the final stage of
engagement we provided and subsequent support for customer finalised our Price Submission and continued to work and further consultation at that time. Patterson Lakes residents
During this stage we also provided briefings on our draft
briefings on our draft proposals outcomes. towards minimising price impacts on households and expressed a desire to proceed with the increase, while Koo Wee
to the Department of Land, businesses, particularly in light of the coronavirus proposals to the Department of Land, Water, Environment and
• Emphasis on the importance of affordability, Rup–Longwarry residents supported the delay.
Water, Environment and particularly with the impacts of the coronavirus
pandemic. Planning (DELWP), Office of the Minister for Water, and consumer
Planning, Office of the Minister pandemic. advocacy groups: the Energy and Water Ombudsman of Victoria Refer to Section 8 for further detail on the customers engaged,
for Water, and consumer
advocacy groups: (EWOV), Consumer Action Law Centre (CALC) and Brotherhood methods used and key findings.
of St Laurence. Given the financial stress the pandemic is placing
• Energy and Water
on consumers, all of these stakeholders strongly reinforced the
Ombudsman of Victoria
• Consumer Action Law Centre need for affordability to be top-of-mind in finalising our Price
Ongoing monitoring of insights
• Brotherhood of St Laurence. Submission. We supplemented our engagement program with a scan of data
Acknowledging the impacts of COVID-19, we undertook sources to understand how COVID-19 is impacting customer
additional engagement to test and refine proposals for easing affordability. Since April 2020, we have included a series of
bill impacts on the community in the immediate (first year) and COVID-19 tracking questions in our fortnightly community
medium-term across the five-year regulatory period. We engaged perceptions survey to add to our knowledge of customer impacts.
with the broader community via a deliberative forum, and with The surveys asks a representative sample of the community a
direct service customers where a service/price increase was series of questions focussed on perceptions and confidence in
proposed. We also advised consumer advocacy groups, DELWP ability to pay water bills.
and the retail water companies of these proposals. Retail water company insights have also confirmed an increase
in the number of households and businesses who are struggling
to pay essential bills and seeking support through hardship
programs.
8 Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 9
Context
Price Submission 2021 – Engagement Report | Melbourne Water
1
11
1 1 Context
Context
In Victoria, prices for water and other 1.1 Melbourne Water’s services and 1.2 Essential Services Commission 1.2.1 ESC guidance on impacts of COVID-19
essential services are periodically reviewed prices Guidance In August 2020, the ESC provided additional guidance to
by the Essential Services Commission Melbourne Water to consider the potential implications of the
(ESC), the independent regulator. The ESC Melbourne Water plays a unique role in the life of Melburnians. Since our previous Price Submission 2016, the ESC has introduced coronavirus pandemic on our Price Submission. With regard to
Part essential service provider and part environmental steward, a new customer-focussed water pricing approach and incentives customer engagement, the ESC expects ‘Melbourne Water to
determines the maximum prices Melbourne our core services span water supply, sewerage, drainage and framework: ‘PREMO’ (Performance, Risk, Engagement, have considered whether the consumer preferences that informed
Water can charge and how these charges are waterway management. Management, Outcomes). PREMO places greater emphasis the development of the price submission remain valid given the
calculated. As part of this process Melbourne on meaningful customer engagement to inform and influence coronavirus.’
We supply high-quality water to homes and businesses; provide
price submissions, and establishes financial, reputational and
water prepares a price submission to the essential sewerage services to maintain our region’s health and
procedural incentives to better align the interests of water Although the final stage of our engagement program (including
sanitation; manage drainage to reduce the impacts of flooding on public consultation on our draft proposals) was undertaken
ESC, detailing our customer commitments, people and the environment; care for our waterways and bays and
businesses with the customers they serve.
during the coronavirus pandemic, we also conducted additional
proposed service standards and prices for the the natural ecosystems they support; and help to create public Our Price Submission 2021 is the first time Melbourne Water engagement to test and refine proposals for easing bill impacts on
next five-year period. green spaces for community recreation and amenity. has applied the PREMO framework. Meeting the ESC’s guidance the community in light of the pandemic. This additional COVID-
requires us to put customers at the front and centre of developing related engagement is documented in Section 8.
The ESC’s new PREMO framework for price submissions is a The prices that customers pay for these important services can be
our Price Submission, engaging with them to define outcome
significant step forward for the water sector, directly aligning categorised as follows:
statements reflecting their concerns, priorities, and preferences
the interests of water businesses with the customers they serve. • Water and sewerage charges: Our wholesale water supply relating to the services we provide and the manner in which we
Aspects of the PREMO framework are consistent with Melbourne and sewerage services are directly paid for by Melbourne’s retail provide them.
Water’s own customer-centric approach, and we have embraced water companies. They provide services to households and
this opportunity to develop a submission with our customers at More specifically, the ESC’s guidance (Melbourne Water’s 2021
businesses, who ultimately pay for our charges as part of their
its centre. Price Review, Guidance Paper, 13 November 2019) requires
water bill.
Melbourne Water to:
This report documents the engagement activities undertaken to • Waterways and Drainage Charge: The retail water companies
ensure our Price Submission delivers against the ESC’s guidance, • Describe and justify how and when Melbourne Water engaged
collect the Waterways and Drainage charge on our behalf,
as well as our own commitments to understand our customer and with its various customer groups.
which directly funds services in waterway health, regional
community needs and values. drainage, and flood protection. Our commitments to deliver • Describe and justify the matters covered by customer
these services are set out in our Waterways and Drainage engagement.
Investment Plan (WDIP), with key commitments included
• Explain what it learned from customer engagement, and how it
in our Price Submission. Development of the WDIP must
satisfied itself that customers were given a reasonable and fair
be undertaken every five years, and is a requirement under
opportunity to participate and that any views expressed were
Melbourne Water’s Statement of Obligations. Development of
sufficiently representative of its customers.
the WDIP, including engagement, was undertaken in parallel
with that of our Price Submission 2021. • Explain how feedback was taken into account by the business in
reaching its proposals.
• Direct service charges: Some customers pay to receive a
specific service not available to the broader community: • Explain how it will address customer expectations that will not
residents in Patterson Lakes and the Koo Wee Rup–Longwarry or cannot be met.
Flood Protection District receive additional waterway
maintenance and flood protection services that directly benefit
their area; and waterway diversion customers (e.g. farmers)
who receive a licence to take and use water from a river system.
12 Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 13
1 Context 1 Context
1.3 Melbourne Water’s engagement The strategy highlights our Price Submission 2021 as an
opportunity to deliver on these commitments:
FIGURE 2 IAP2 Public Participation Spectrum model across Melbourne Water’s business activities.
context “Put customers at the centre of decision-making in our
Melbourne Water is focused on delivering valued services for all 2021 Price Submission, informed through meaningful
our customers. Since our last price submission in 2016, we have engagement.”
AND PLANN
ATEGY ING
continued our journey to becoming a more customer-focused STR IaP2 level
organisation: prioritising genuine two-way customer engagement Next Generation Community
and embedding customer insights into how we do business, to
ensure better outcomes for our customers and community.
Engagement Program COLLABORATE
Our Next Generation Community Engagement Program (NextGen) Our promise
Our Corporate Plan (2020-21 to 2024-25) sets out our
commitment to empowering communities to shape the future: was instrumental in developing the engagement approach for our
ne
Price Submission, as outlined in Section 2. will part r with y
We he design of o ou
“Melbourne Water is committed to collaborating with in t ur
NextGen was launched in 2016 to transform and embed best- s and collabor
customers and stakeholders to deliver the best value we can ct ivitie ate
practice engagement across our business. It aimed to shift us a ether to gener W
tog and solut ate
ER
from the whole of the water cycle.” d e
IN
from good practice engagement in order to manage risks, to in s as i ons. ac esi
u itie ide
W
VO
t
w an and hape
Our Price Submission 2021 has been an opportunity to further v t yo iv
gn ties put ome.
a position of leadership and innovation where our customers
ill d
you leme r a yo
PO
ha u
in de advis the
LV
de nt cti
i in tc
embed our customer-focused aspirations, including those in our
ou th
and community are at the core of everything we do. Over the
vo live
r ou
cid w
EM
and i n of wi
E
Customer and Community Strategy and our NextGen Community
lve
last few years we have worked to embed our Next Generation
e.
rk
Engagement model.
the de ill wo
you of our
Community Engagement Program (NextGen) into the culture of
s
ry
the organisation.
mp
sig
in th
We w
Customer and Community Strategy
e how
it y
En
d
NextGen aligns our business activities with the International
e
h
o m mun
2018-2023 Association of Public Participation (IAP2) Core Values and
a n c i n g life
Spectrum, which helps guide, design, plan and classify our
Our Customer and Community Strategy 2018-2023 is a critical engagement activities, as illustrated in Figure 2. The program
ec
enabler for delivering our Strategic Direction of ‘Healthy People, helps identify the level of complexity of decisions and the
We i v i t i e a n
d,
Healthy Places and Healthy Environment’ by ensuring the
and
th
opportunities for our customers and the community to influence nd
act
r
d b n ce r m e
a
services and experiences we provide are shaped by customer and li va b ili t y f o
w il
outcomes, matching the engagement need with the problem
ac rns
community perspectives, both current and future. The strategy
l in s ea im
ee co in fo
to ensure we use the right approach, at the right level, at the
k.
establishes a framework for responding to rapidly-evolving
f o rl
right time.
s, o u
rm y
customer and community expectations, and is centred on yo
y
a u p
y
building trust and confidence through valued services, exceptional pa nd a b ee ea
ct m i o u t o i ll k i d e f
w r
experiences and relationships. s. nim ur We y o u ov i d
Melbourne Water and our industry-leading NextGen is e r pr
hea
The strategy identifies six implementation areas:
LT
Engagement Program were selected as a finalist in the
IN
O
SU
International Association of Public Participation (IAP2)
F
1. Our services: we will continue to deliver and evolve services RM N
CO
of value by understanding the needs and priorities of our Australasian ‘Organisation of the Year’ Core Values Award
customers and community. in 2018 and again in 2020.
2. Our community: we will drive awareness of Melbourne Water The IAP2 Core Values Awards recognise outstanding
and familiarity with our activities and services, while engaging projects and organisations that are at the forefront of public
our diverse community on decisions that involve and impact participation and community engagement.
them. DEL ES
IVERY
3. Customer centricity: we will understand our customers’ AND SERVIC
perspectives – not just our own – to strengthen relationships,
enhance digital experiences and improve delivery of services.
4. Disciplined delivery: strong governance and an understanding
of opportunities outside our organisation will lead to ‘fewer,
better, smarter’ customer and community outcomes.
5. Customer and community capability: all levels of our
organisation will understand and be empowered to deliver
improved services, relationships and experiences to customers
and community.
6. Building adaptability: we will focus on improving and
enhancing our digitisation, relationships, systems and
processes to enable a ‘single view of customer’.
14 Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 15Engagement
approach
Left: Melbourne Water attended
a number of community
festivals to promote our Price
Submission engagement
program, including the
Manningham Family Festival
in Lower Templestowe.
Price Submission 2021 – Engagement Report | Melbourne Water
2
172 2 Engagement approach
Engagement approach
Our approach to engagement for our 2.1 Engagement program FIGURE 3 How we applied the ESC’s engagement framework to our approach
Price Submission 2021 demonstrates our
Our engagement program was developed with regard to both
commitment to customer focus: engaging the ESC’s guidance and Melbourne Water’s customer-focused PS16 PS21 FORM
customers early, on matters of importance, commitments (outlined in Section 1). It was designed to address We collaborated with our Customer
Councils to:
through fit-for-purpose channels that enabled four principles, building on the ESC’s guidance:
Empower • identify focus areas to form the basis of
a representative group of customers to share 1. Start early to ensure adequate time and fair opportunity for ongoing conversations throughout the
program
customers and the community to understand and participate
their views on issues of priority to them. in different aspects of developing the Price Submission, and to
• develop and refine our Customer
Outcomes
We committed to deepening and evolving relationships with facilitate in-depth and meaningful discussion and deliberation. Collaborate • develop our position on key regulatory
our customers to ensure our submission delivers meaningful and tariff matters.
2. Deep engagement on specific topics to allow for genuine
outcomes aligned with customer values and priorities. Our two-way conversations and understanding. We involved our customers in the
Began in pre-planning stages and are
Deeper
engagement program enabled customers to influence key aspects development of our waterways and
3. A staged and agile program that could be adjust in response now moving towards ongoing drainage expenditure program and
of our submission, and for Melbourne Water to better understand conversation via our proposed
Involve
to customer interests and insights. consulted them on the development of
their experience and what they value. performance reporting framework. our water and sewerage expenditure
4. Representative of our customer segments and the wider In pre-planning phase, we: program.
community. • sought and received guidance on
Consult
We collaborated with the broader
customer expectations ahead of community to:
Figure 3 shows how we progressed key elements of the ESC’s the development detailed price • define community values to guide the
engagement framework from our Price Submission 2016 to our submission workplans matters on which we engaged on
Price Submission 2021. It demonstrates how engagement across • reviewed our existing customer • develop and refine our customer
insights program to help us Inform outcomes.
our entire submission has moved to a deeper form (towards understand customer values. This
collaboration), with broader content (towards performance helped inform development of our We consulted with the broader
stewardship) and earlier timing (towards an ongoing conversation). engagement program and the community on the draft version of the
These changes reflect our desire to better understand our areas of focus. price submission.
customers and their preferences, enabling us to improve the
alignment between these and the services we deliver.
From the outset, we committed to a collaboratively-developed
Price submission
approach and customer-led agenda incorporating learnings Discrete projects
formed
from the retailer water companies’ 2018 price submissions
(which applied the PREMO framework) and their preferences
Br
r
for greater transparency, collaboration and alignment. Our Price submission Service standards
r li e
oa
extensive 20-month engagement program allowed for multiple developing tariffs
de
Ea
r
iterations of research, testing and reporting, and was informed
by early community insights and engagement with the retail
Planning Price and service
water companies during pre-planning and the early stages of
underway trade offs
the program. Findings from each stage also shaped subsequent
stages – particularly the information shared with customers
and community, which was refined and tailored in response to
Pre-planning Whole submission
ongoing feedback.
Performance
Ongoing
stewardship
TIMING CONTENT
Whole of submission engagement process moving towards
performance stewardship via our performance reporting framework.
Customer Councils provided strategic ideas, preferences and advice
on key issues and opportunities across whole of submission.
Customers (via Councils) given the opportunity to review and
comment on every aspect of the submission.
Price and service trade offs were a strong part of the waterways
and drainage service only.
18 Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 192 Engagement approach 2 Engagement approach
Pre-planning for our engagement program began in 2018. We A broad range of views needed to be understood in collaborating TABLE 1 Engagement by customer segment and service
collated and analysed our existing knowledge base of customer with customers to formulate solutions and incorporate advice
and community insights, and sought to understand the retail and recommendations. We sought feedback from key customer
water companies’ experiences with developing their 2018 price and community segments through a variety of fit-for-purpose
submissions. This informed development of our program, which forums and activities, tailored to match the level of interest in
formally commenced in February 2019 and ran through to our Price Submission, the complexity of decisions, and to provide
September 2020. opportunities for customers and the community to influence
outcomes. For more information on the specific engagement Water and sewerage Waterways and drainage Direct services
The three-stage program was closely integrated with the
activities undertaken with each customer segment and the
development of key aspects of our Price Submission:
insights gained, refer to sections 4–8.
• Retail water companies (‘retailers’) • The broader community (households • Owners of property in the Tidal
• Stage 1 sought to understand customer and community values are our direct customers. They and businesses) are our direct Waterways and Quiet Lakes at Patterson
Our engagement program is intended to transition from a focus
and identify key issues of importance to be further investigated purchase our bulk services and on-sell customers. They enjoy the benefits of Lakes pay a special service charge – in
on developing our submission to an ongoing conversation with these to their direct customers. the waterways and drainage services we addition to the Waterways and Drainage
through Stage 2.
customers about our services and performance. This will enable • The broader community (households provide across Greater Melbourne and Charge – for works and services specific
• Stage 2 sought to understand customer preferences and us to become more agile in responding to evolving customer and businesses) are our indirect pay our Waterways and Drainage to their properties.
customers. They ultimately consume Charge via their water bills.
willingness to pay for different service levels, and to develop preferences in an ever-changing environment. • The Koo Wee Rup–Longwarry Flood
RELEVANT CUSTOMER SEGMENTS
the water that we produce, and supply • Local government delivers drainage Protection District is prone to significant
and refine customer outcomes and performance measures. the sewage that we transfer and treat. and flood management services, and flood risks. Property owners in this
owns and maintains local infrastructure district pay an exclusive charge to cover
• Stage 3 involved review and validation of the customer connected to Melbourne Water’s maintenance for the area’s extensive
outcomes, performance measures and key proposals of our 2.2 Customer representation drainage system. They are a key partner
in advancing integrated water
drainage network.
draft Price Submission. • Waterway diverters hold licences to
management.
As part of Melbourne Water’s customer and community journey extract water from rivers, streams, dams
The stages and associated engagement activities are summarised • Engaged community groups are a key and stormwater pipes for a variety of
and in response to stakeholder and industry feedback on our partner in delivering service levels and
in Table 2. Our engagement program sought to align with the purposes, including domestic and stock
2016 Price Submission, we aimed to provide greater clarity on our community outcomes in localised watering, agricultural irrigation,
consult, involve and collaborate objectives on the IAP2 Spectrum
definition of ‘customer’ and ‘community’. catchments. They include organisations stormwater harvesting, power
of Public Participation. We sought to consciously identify a such as Port Phillip EcoCentre, Werribee generation and industrial cooling.
level of participation appropriate for the engagement stage, To assist in defining and understanding our customers, River Association and Yarra Melbourne Water manages these
Riverkeepers Association. licences in accordance with the Water
the matters engaged on and the level of relevance and interest Melbourne Water has divided our customer base into eight
• Developers fund/deliver drainage Act 1989.
to different customer segments. Deep engagement on specific segments – Retail Water Companies, Local Government, Engaged infrastructure, particularly in greenfield
aspects enabled a detailed understanding of customer and Community Groups, Developers, Direct Service Customers, State areas, to protect waterways and
community values and preferences, which influenced customer Government, Industry Leaders and the Broader Community. mitigate flood risks.
outcomes and service levels.
This customer segmentation supported our tailored approach
to engagement for the Price Submission to reflect varying
HOW WE ENGAGED
• Retailers were represented on a Water • Customers represented on a Waterways • Patterson Lakes residents
circumstances, levels of impact and interest. We also took a and Sewerage Customer Council, and Drainage Customer Council • Koo Wee Rup-Longwarry residents
service-based approach to engagement for the price submission Engagement Advisory Panel, and • Local government information session • Diversion licence holders
Regulatory Managers Forum and submissions
and so it was important to align our customer segments with the Separate engagement programs were
• Social research program • Community research program
service(s) most directly relevant to them. Table 1 summarises undertaken with direct service
customers, documented in Section 7.
the customer segments we engaged for each service and the key
forums used to engage with each segment.
In addition to the above, tailored briefings were provided to: • Consumer advocacy groups: we directly corresponded with
these groups (via letters, emails and telephone calls) to offer
• Department of Environment, Land, Water and Planning
individual briefings, and an opportunity to comment on our
(DELWP): detailed presentations and an invitation to comment
draft proposals and identify key concerns. Briefings were
on our key proposals were provided to key DELWP staff during
provided to the Consumer Action Law Centre and Brotherhood
Stage 3. A copy of our draft submission was provided for
of St Laurence.
comment in September 2020 prior to Board approval.
• Traditional Owners: between September 2019 and March
• Office of the Minister for Water: a briefing was provided during
2020, a series of meetings was held with representatives of the
Stage 3. A copy of our final submission was provided following
three Traditional Owner groups in our service area (Bunurong,
Board approval.
Wadawarrung and Wurundjeri Woi wurrung) to discuss matters
• Energy and Water Ombudsman Victoria (EWOV): a briefing associated with the Waterways and Drainage Investment Plan
was provided during Stage 3 and an invitation extended to (WDIP) and Price Submission 2021. Our engagement with these
comment on our key proposals. groups is ongoing.
20 Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 212 Engagement approach 2 Engagement approach
2.3 Engagement forums and Water and Sewerage Customer Council Waterways and Drainage Customer Council Community forums
The Water and Sewerage Customer Council (WSCC) was The Waterways and Drainage Customer Council (WDCC) was
methods established to provide a dedicated customer forum to test appointed to provide strategic advice on our waterways and We undertook a comprehensive community research program
strategic ideas, seek preferences and provide advice on key issues, drainage pricing proposals through a customer and community to hear the views of the broader community on a range of
We used a variety of fit-for-purpose engagement forums and opportunities and focus areas. lens, and to help inform development of the Waterways and specific topics. Community research was a critical element
methods to ensure customers were given suitable opportunities Drainage Investment Plan (WDIP). The WDIP is a key input to of the engagement program and a robust methodology was
to influence our submission. The key forums are illustrated in The WSCC consisted of representatives from the metropolitan applied to uncover values and preferences on specific topics from
the price submission as it relates to setting the Waterways and
Figure 4. retail water businesses and connected regional water a representative and statistically valid sample of the broader
Drainage Charge.
corporations, including City West Water, South East Water, community.
Information to support our engagement activities was provided Yarra Valley Water, Western Water, Barwon Water, and South Members of the WDCC included representatives from local
in a range of formats tailored to the activity and audience, and Gippsland Water. government (Brimbank City Council, Wyndham City Council, Our community research program applied representative
distributed through a variety of channels, as set out below. Yarra Ranges Council, Maroondah City Council, City of Melbourne sampling and engagement approaches (such as online forums)
The WSCC was supported by the following advisory forums: to ensure views expressed could be considered representative
The focus of our engagement forums is summarised below. For and Moorabool Shire Council), engaged community groups (Port
• Regulatory Managers Forum (RMF) was established to Phillip EcoCentre, Werribee River Association, Yarra Riverkeepers of the broader community. Participants were carefully selected
details on the specific engagement activities undertaken with
provide advice to the WSCC, focusing on in-depth exploration Association), key stakeholders from the State Emergency Service, to ensure representation across different age cohorts, gender,
each customer segment and insights gained from each, refer to
of complex regulatory matters relating to the submission. It Victorian Planning Authority and the Urban Development location, level of education, work status, and household size
the later chapters of this report (sections 4–8).
was comprised of regulatory managers from Barwon Water, Institute of Australia, one general community member and one and ownership. We also targeted harder to reach disadvantaged
City West Water, Gippsland Water, South East Water, South direct services customer (waterway diverter). groups including people on lower incomes, people who spoke
Customer Councils Gippsland Water, Yarra Valley Water and Western Water. another language at home or with parents, and people with a
chronic illness or disability who might otherwise find it hard to
We established two dedicated customer forums as strategic • Engagement Advisory Panel (EAP) was established to provide participate in engagement activities.
engagement channels to represent our key customers: a Water a forum for review of our engagement program and sharing
and Sewerage Customer Council, and a Waterways and Drainage of community insights and findings openly; to learn from the • Qualitative research: A series of focus groups, workshops
Customer Council. These two forums worked collaboratively with retailers’ own price submission engagement experiences; to and interviews explored values, perceptions and attitudes
us over 18 months to help shape and refine both our engagement ensure clarity and coordination of communications to the about Melbourne Water’s services, and identified priority
activities and our response to key service and regulatory matters. community; and to identify opportunities for joint efforts and issues. These also informed the design of quantitative research,
alignment of engagement activities across the sector. It was including the framing and language used to communicate
comprised of engagement practitioners from each of the retail services and proposed initiatives effectively.
water businesses. • Quantitative research: Two online surveys tested the strength
of views uncovered through qualitative studies, and explored
community prioritisation and willingness to pay for service
levels and new initiatives. One survey focussed on waterways
and drainage services, and the other covered a range of new
initiatives across all Melbourne Water services.
FIGURE 4 Key engagement forums • Deliberative panels: Two community deliberative panels
explored complex issues in greater depth and tested and
prioritised strategic initiatives and scenarios. One panel
focussed on waterways and drainage services and met four
Price Submission 2021 times to review and deliberate. The other panel reviewed and
prioritised our proposed customer outcomes and performance
measures, and was later called on to test our COVID-related
Water & Sewerage Waterways Waterways Broader Direct service proposals.
Customer Council & Drainage & Drainage community customers Prior to all community forums, pre-reading was circulated to help
Customer Council Investment Plan
Retail water companies
(WDIP)
Community research Patterson Lakes participants understand Melbourne Water’s activities and the
Local government Community Koo Wee Rup– topics to be discussed. Pre-reading packs were prepared in plain
Developers deliberative forums Longwarry English and supplied as audio versions as an alternative to reading.
Regulatory Engaged community Waterway diverters These were accompanied by short animations providing a simple
Managers Forum (River & Bay Keepers) Waterways & overview of each of our services. For our online deliberative
Direct services Drainage Community
Deliberative Panel
forums, a sketch artist illustrated summaries of each day’s
customer (diverter)
Engagement discussion, providing participants with a visual alternative to
Advisory Panel Broader community
Local government
reading long passages of text.
Emergency services The Waterways and Drainage Deliberative Panel met four times to
submissions
discuss issues in depth.
Traditional Owner
briefings
22 Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 232 Engagement approach 2 Engagement approach
Other communication channels
Multiple distribution channels were used to raise awareness of
our submission among a broad cross-section of the community
and enable them to participate if interested. Digital channels
included our YourSay online engagement portal and social media,
and a gamification tool (‘Drip Trip’) developed to attract younger
cohorts. We also had a presence at community festivals to help
us get the word out to the broader community.
Community festivals YourSay online engagement hub Digital assets We made a concerted effort to capture the views of a
younger demographic (aged 18-35) via our online game, Drip
We participated in five community festivals across Melbourne: A dedicated website for the Price Submission was launched in Several digital assets were developed to support our Price Trip. Despite being most impacted by decisions on future
February 2019 on our YourSay digital engagement platform. Submission, and were designed to be reusable for other services, younger people are significantly underrepresented
• 30 March 2019 – Moonee Valley Festival, Aberfeldie
This was used as the primary communication channel for the purposes. in our traditional engagement programs and our community
(inner west)
broader community, providing a central and easily accessible research has found they have the lowest water literacy and
We developed short animations explaining each of our core
• 7 April 2019 – Emerald Funfest, Emerald (outer south east) place to access information, receive updates and ask questions awareness of our services.
services and their benefits to the community, in response to
throughout the development of our submission.
• 20 October 2019 – Knox Stringybark Festival, Rowville community research revealing a low understanding of water Drip Trip pilots gamification in an engagement context, using
(south east) The site facilitated opportunities for two-way interaction services and Melbourne Water’s role in delivering them. These game mechanics to motivate players to learn about each of
through surveys, polls and comment boards and was updated were hosted on YourSay and Melbourne Water’s YouTube Melbourne Water’s services, localised according to players’
• 27 October 2019 – Children’s Week Picnic, Werribee (west)
with relevant communications collateral at each of the three channel and promoted via social media. They were also shown postcodes. A customisable screen at the end of the game
• 17 November 2019 – Manningham Family Festival, engagement stages. The website was promoted via paid social at community festivals and forums, and used to support our encouraged players to complete the willingness to pay surveys
Lower Templestowe (east) media advertising, an email notification to more than 1,000 willingness to pay surveys. that ran during Stage 2. The game was launched in November
existing YourSay subscribers and postcards distributed at 2019 and promoted via social media, Melbourne Water’s
These events were selected to ensure a broad geographic community festivals. council newsletter, media releases and the 2019 Kids Teaching
coverage across metropolitan Melbourne. They were used to
Kids educational conference sponsored by Melbourne Water.
educate the community about Melbourne Water’s diverse
services, encouraging active participation in a range of Social media
educational activities to facilitate conversations about our
A combination of organic (unpaid) posts and paid
services and prices.
advertisements were published on Facebook and Instagram
Postcards were distributed to people who wanted more to provide information about Melbourne Water’s services and
information about our Price Submission, encouraging them to the submission, and promote participation in the engagement
visit the YourSay engagement hub to follow its progress and program via the YourSay website.
provide feedback.
24 Price Submission 2021 – Engagement Report | Melbourne Water Price Submission 2021 – Engagement Report | Melbourne Water 25You can also read
