The Independent Pricing and Regulatory Tribunal last week made a one-year determination for WaterNSW maximum prices for bulk water services to rural valleys in NSW, commencing on July 1.
NSW Irrigators’ Council chief executive officer Claire Miller said it was disappointing that IPART had shifted from the affordable 1.9 per cent plus CPI price rise proposed in its information paper last month.
“This is disheartening for farmers across NSW whose hopes were raised that their bills would remain manageable for the next 12 months while they are under pressure with surging input costs, high interest and the impact of flooding and looming drought,” Ms Miller said.
“The determination underlines the need for the NSW Government to urgently reform the flawed pricing model and corporate structure driving unaffordable hikes in rural water bills over the last 10 years.”
According to IPART, the typical farmer with a 500 Ml general security licence in the NSW Murray Valley will pay $217 more on WaterNSW bills in 2025-26.
The additional amount paid by the same farmer in other valleys includes: Namoi Valley, $1390; Lachlan Valley, $1086; Hunter Valley, $1308; Peel Valley, $994; Macquarie Valley, $820; and Murrumbidgee Valley, $227.
The IPART determination includes inflation of 2.4 per cent.
Ms Miller said while the price increases were disappointing, IPART had at least gone part of the way highlighting the need to address government inefficiencies to avoid exorbitant price proposals in future.
“WaterNSW’s pricing proposal was for an annual average hike of 25 per cent plus CPI each year for the next three years, to cover costs to deliver water to customers and other licence obligations,” she said.
“Clearly price increases of that magnitude would price our farmers out of business and local NSW food off supermarket shelves. The cost drivers must be addressed.”
Ms Miller warned the NSW Government must ensure WaterNSW can continue to deliver essential services and infrastructure works while the government and IPART review the pricing model and corporate structures.
“If WaterNSW is right about its long-term cost needs because there are business sustainability issues, that is a problem. If they are wrong, this is also a problem.
“IPART needs to get to the heart of the truth to ensure reasonable and affordable water charges for farmers.”
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