A Victorian regulator has warned higher prices are coming in the wake of the privatisation of the Port of Melbourne. 

An independent review by the state’s essential services watchdog says the new, private owners of the Port have overstated the amount of money needed to operate by as much as $650 million over five years. 

The Essential Services Commission says consumers may soon pay “prices that are higher than they should be” for imported products because the port’s operator has run the facility in a manner “not consistent with that of a prudent or efficient service provider”.

It has been five years since the port was sold on a 50-year lease for $9.7 billion to a consortium that included the Queensland Investment Corporation, the Future Fund and Global Infrastructure Partners.

The Essential Services Commission says these operators have failed to comply with their obligations to run the port efficiently “for the long-term interests of users and Victorian consumers” and to ensure its charges are fair and reasonable.

For the first five years of the lease, the private operator has over-estimated the revenue it needs to run the port by between $300 million and $650 million.

As a result; “Victorian consumers in the future may be impacted by prices that are higher than they should be”, the report says. 

Port of Melbourne has responded, claiming that the issues raised by the commission have had “no meaningful impact” on the prices paid by port users. 

“PoM is disappointed that the Essential Services Commission report does not acknowledge that, over the past five years, we have worked to address and adapt our approach on a range of matters [the commission] has raised with us. This demonstrates that the regulatory framework is working as it was designed to,” the statement said.

Treasurer Tim Pallas claims the Andrews government will continue working with the Port of Melbourne and stakeholders to get the best outcomes for Victorians.