THE Australian Competition and Consumer Commission’s (ACCC) first foray into pricing bulk water supplied by State Water has been met with approval from many, but also fury from Peel Valley irrigators, who are fuming at price hikes in their valley.
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State Water bills for the Peel, Murray and Murrumbidgee customers will rise, while bills are set to fall for the majority of customers in other valleys.
However, funding for the NSW government’s component of the joint programs managed by the Murray Darling Basin Authority (MDBA) are incorporated into the charges
The ACCC retained the current 40/60 fixed/variable charges ratio.
ACCC chairman Rod Sims said without the higher irrigator contribution to the MDBA costs, most irrigators would have benefited from lower bills.
Gwydir Valley Irrigators Association chief executive Zara Lowein welcomed the ACCC’s announcement, telling members: "For the Gwydir, both general and high security users will see a reduction in their fixed and variable fees in the coming water year”.
NSW Irrigators economic policy analyst Stefanie Schulte was “extremely pleased” the ACCC maintained the current tariff structure.
"State Water had asked for a change in the current tariff structure to an 80 per cent fixed cost basis," Ms Schulte said.
"Such an outcome would have seen State Water recover over 90 per cent of their revenue even if allocations are close to zero, which is a completely unacceptable outcome for irrigators."
However, Tamworth’s Northern Daily Leader has reported that Peel Valley Irrigators are furious with the ACCC.
“It’s a farce ... they’re supposed to be the regulator, they’re supposed to be setting a fair price,” Peel Valley Water Users Association president Ildu Monticone said.
“We think the ACCC has failed in its responsibility. The ACCC talks about promoting competition and fair trading.
“I would ask how is it fair trading and how is it promoting competition if some valleys pay $2.40 and the Peel is paying $55.13?”
On May 30 this year the NSW government told the ACCC that it will increase MDBA cost recovery from July 1, 2014.
Below is listed the percentage change in 2014/15 bills compared to current charges, including the new irrigator contribution to MDBA costs for 2014/15.
General security users
- Border 0 per cent
- Gwydir 14 per cent
- Namoi 10 per cent
- Peel 10 per cent
- Lachlan 10 per cent
- Macquarie 8 per cent
- Murray 24 per cent
- Murrumbidgee 5 per cent
High security users
- Border 9 per cent
- Gwydir 9 per cent
- Namoi 2 per cent
- Peel 10 per cent
- Lachlan 0 per cent
- Macquarie 3 per cent
- Murray 38 per cent
- Murrumbidgee 13 per cent
