Water users are seeking a fairer payment system as part of the Independent Pricing and Regulatory Tribunal of NSW (IPART) end-of-term review of WaterNSW's operating licence which is due to expire on June 30.
IPART sets the prices for each regulated river valley in NSW and water users are concerned WaterNSW charges will be raised like they were after the 2021 IPART pricing determination saw increases average 29-31%, and rise as high as 52% in some valleys.
Water users don't want to be the only ones to pay for community betterment services such as fish passageways and climate change adaptation.
IPART recommendations to the NSW Government in the details of a new operating licence will come into effect on July 1, and NSW Irrigators' Council's submission is petitioning for the operating licence to be more customer-centric.
"Water users have concerns about IPART's interpretation of the 'impactor pays principle', in that it disproportionately burdens WaterNSW customers with the costs of delivering public good services demanded by community and urban stakeholders," NSWIC CEO, Claire Miller said.
"Contemporary water management serves a range of public interests, including ecosystem preservation, recreation, and cultural heritage.
"Consequently, the 'impactors' creating the need are not solely water customers but encompass the broader community with a stake in water resource management."
"IPART should not be proposing to mandate more public services in WaterNSW's operating licence without considering the cost-sharing implications for its next pricing determination.
"We're hearing rumours that charges could leap again by up to 129% in the next pricing determination if WaterNSW is to meet all demands being placed upon it.
"Farmers just cannot afford to keep growing food and fibre if IPART and the Governments keep expecting water users to foot the bill for projects and services driven by changing community expectations."
A WaterNSW spokesperson said it is currently consulting with customers and stakeholders on its pricing proposal to IPART for rural valleys, Greater Sydney, and for Water Administration Ministerial Corporation (WAMC) costs.
"WaterNSW is working to limit price increases where it can by reducing costs within its control and considering a range of alternative funding options," the spokesperson said.
"WaterNSW's task is to present a prudent and efficient business plan that outlines the costs and revenue required to run the business through the next regulatory period to 2031.
"That plan must cover not only the customers' needs, but also WaterNSW's various regulatory obligations.
"IPART, as the independent pricing regulator, will then ultimately consider customers' ability to pay, in setting customer prices for the period 2025-2030.
"IPART also set the cost-sharing arrangements between end-use customers and government."
The spokesperson said business costs are driven by factors outside of WaterNSW's control, such as higher construction costs, interest rates, insurance costs and land tax.
"WaterNSW is already engaged in measures to relieve pressure on its operating costs, including implementing a cost transformation program targeted at reducing $26 million, or 10 per cent, of its annual operating expenditure, having delivered to date $18 million in recurrent savings.
"WaterNSW is seeking to defer capital expenditure where it's prudent to do so, and engaging with IPART on other economic levers to reduce revenue requirements, and hence the costs to be recovered from customers."
NSWIC also believes there is a need for an improved consultation process which prioritises customer needs and preferences.
"To build trust and accountability, WaterNSW must adopt prescriptive engagement requirements that ensure targeted and meaningful consultation with water users," Ms Miller said.
"This includes publishing consultation timelines, implementing valley-based engagement approaches, and conducting satisfaction surveys to evaluate the effectiveness of engagement efforts."
NSWIC said it is also "advocating for the retention and enhancement of Customer Advisory Groups (CAGs) to facilitate direct customer consultation and hold WaterNSW accountable to its operating standards".
The WaterNSW spokesperson said the organisation prides itself on its customer service, and continued improvement in this regard is reflected in regular customer satisfaction survey results.
"The level of community engagement involved in this year's pricing determination discussions is the most extensive and inclusive in WaterNSW history," they said.
"This includes more than 42,000 points of engagement with individual customers and community groups across the state, supported by four Water Working Groups involving a mix of customer, community and other water-use stakeholder representatives.
"This year the number of dedicated stakeholder engagement staff has been expanded in line with enthusiastic feedback from customers and community, and our regional presence has been deliberately expanded."
