The review has been welcomed by irrigator and community groups, who reacted strongly to a previous proposal submitted to the Independent Pricing and Regulatory Tribunal (IPART).
IPART chair Carmel Donnelly said the review would examine the costs of WaterNSW’s rural valleys operations and determine prices for coming years that appropriately balance what customers can afford to pay for bulk water with the efficient level of revenue needed for WaterNSW to remain financially sustainable while meeting its obligations.
Murray Regional Strategy Group executive officer Shelley Scoullar said it was a relief that collective voices across the irrigation industry were heard when the original proposal was submitted, and an interim price determination was put in place.
“It is imperative that a fairer model is developed, as the impactor pays model is not working with a diminishing return on water allocations and flow-on impact to entire regions, not just irrigators.
“It is up to everyone to share in the cost of delivering environmental flow targets, especially when these targets are politically driven.
“Irrigators should not be funding government inefficiency, so it is essential we engage in the process and ensure adequate changes are made,” Mrs Scoullar said.
NSW Irrigators Council CEO Dr Madeleine Hartley said it had consistently advocated for a wholesale pricing review of WaterNSW and was pleased to see that recommendation adopted, paving the way for a thorough review that can help ensure fair and affordable water access for irrigators.
“WaterNSW revenue requirements are ballooning faster than the capacity of its customers to pay more.
“This is not a sustainable business model by any measure. Cost sharing arrangements must be reviewed and cost-drivers assessed.
“IPART has rightly recognised that access to safe, reliable and affordable water at a fair price is critical to rural communities, the environment and the economy.
“IPART’s review and consultation plan is a step in the right direction to ensure this is the case,” Dr Hartley said.
IPART will be seeking submissions as part of its review process, and these close on November 20.
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