When Greater Western Water switched on its new $103.7 million billing system, it promised a seamless experience for the 1.43 million Victorians relying on its services. However, the transition has turned into a protracted debacle, now spanning 16 months and projected to continue into a second year, costing the public authority an estimated $150 million in compensation and written-off bills.
The announcement comes as Greater Western Water grapples with the fallout from its botched billing system launch on May 29, 2024. Despite a six-month preparation period involving a dedicated taskforce and a “tiger team” for risk management, the launch was marred by incomplete testing and unresolved issues. New CEO Craig Dixon, who took the helm in August, has prioritized resolving these billing issues, stating, “I think there’s been shortcomings by multiple parties. Certainly, we are considering our options.”
Unfinished Plans and Incomplete Testing
The origin of the debacle traces back to a 2021 merger between City West Water and Western Water, aimed at forming a new authority to serve areas including the CBD, inner north, Footscray, Werribee, Sunbury, and Melton. This merger required integrating two outdated data systems into a new platform, CustomerPlace. However, a report by former senior bureaucrat Claire Noone highlighted that “When the system launched in May 2024, it did not work as designed.”
Key failures included more than 11,000 concession cardholders not receiving discounts, 18,000 customers being overcharged, and nearly 10,000 apartment residents being billed incorrectly. Furthermore, at least 320 individuals had their personal details compromised, raising concerns about identity theft and safety for those affected by family violence.
By the Numbers
- Initial budget for the new billing system: $103.7 million
- 598,828 homes and 55,267 businesses serviced by Greater Western Water
- 9,872 apartment customers billed incorrectly
- $16.3 million already spent in waived bills and hardship credits
- Proposed $130 million in compensation and written-off bills
- 11,000 concession customers missed discounts before October 2024
- More than 18,000 concession customers overcharged in October 2024
- 320 privacy complaints filed
- 320,000 inaccuracies manually corrected
- Over 480,000 customers received late bills between July and November 2024
Systemic Failures and Response
Greater Western Water’s internal review and external audits revealed systemic failures at nearly every stage of the project. In November 2023, a “data cleansing taskforce” of 23 workers was tasked with resolving data inconsistencies, but key billing methods were omitted, leading to further complications. The integrity agency noted that validation rules were progressively abandoned in the rush to meet deadlines, resulting in unprepared accounts being loaded into the new system.
Despite four practice runs, full end-to-end testing was never conducted. A checklist for the transition minimized the seriousness of known issues, contributing to the chaos that ensued. Meanwhile, Greater Western Water failed to establish a contingency plan to revert to the legacy systems if necessary.
Expert Opinions and Future Implications
Experts suggest that the pressure to launch quickly without additional costs led to a scope expansion that compounded the project’s complexity. New pricing rules introduced in July 2024 further complicated the billing system. Dixon has dismissed claims that there was an intentional focus on revenue over customer service, emphasizing that the failures were not deliberate.
The Energy and Water Ombudsman Victoria reported a fivefold increase in complaints about Greater Western Water in the year leading to June 30, with 1,800 customers coming forward. An additional 700 complaints have been lodged in the subsequent months.
Looking Ahead
As Greater Western Water continues to address the fallout, Dixon remains committed to ensuring customers do not bear the financial burden of the errors. The authority is exploring legal avenues to recover costs once the system is stabilized, projected for June next year. The saga serves as a cautionary tale of the complexities and risks inherent in large-scale system overhauls, highlighting the need for meticulous planning, comprehensive testing, and robust contingency strategies.
Rachel Eddie is a Victorian state political reporter for The Age. Contact her at [email protected], [email protected], or via Signal at @RachelEddie.99. Connect via Twitter or email.
