IPART slams water users with new prices

The Independent Pricing and Regulatory Tribunal (IPART) NSW handed down their new pricing structure for water charges in NSW to start from 1 October 2021 with no good news for farmers, struggling to recovery from the drought and the reform costs for metering already.

Gwydir Valley Irrigators Association (GVIA) Executive Officer, Zara Lowien said that despite a lack of preparedness and documentation by agencies, which resulted in the new prices being delayed, IPART have characteristically set prices just below what the agencies asked.

“IPART in this determination, like the ones previously, goes to great lengths to explain that despite the cost increases, they’ve self-marked themselves as doing a great job”.

“That’s because they have set prices less than what the agencies asked” she said.

“All prices other than regulated administration charges are set, lower than what the agencies asked and IPART make sure that’s part of their message to users” she said.

“The details within the determination confirms that Gwydir water users will see significant pricing change increases across the valley for the next four years.”

“The only water user to see a reduction in overall charges are inland groundwater users, largely due to cost shifting between agencies.”

“High security and unregulated users are the hardest hit with 46% and 66% increase in some charges respectively.  General security and supplementary users are not free from increases, usage charges for them increase 34%[1]” she said.

“There are also significant increases in administration charges through WaterNSW which the GVIA warn anyone with a water approval to be aware of the increase” said Mrs Lowien.

“Whilst IPART rejected the 174% increase being requested, charges for simple amendments to water approvals or licenses have still increased by 109% to $536 per amendment”.

“Most other charges also increased, the most costly now a hydrological assessment because it is handed back to the Department of Planning, Industry and Environment – Water on a fee for service for $4,983.31” she said.

“These increases in administration charges are very concerning given the sudden push by agencies to require amendments to the status and matching of installation specifics, which were not previously required” she said.

“Conveniently for agencies from 1 October 2021, water users will in most cases have to pay twice as much for the privilege to maintain the Government’s own database” she said.

 [1] See Table 1 and Table 2 below as summaries of prices.

Table 1: Summary of New Regulated Water Prices in the Gwydir Valley

Note: Water NSW’s proposed prices are based on prices that recover Water NSW’s proposed costs over a 4-year period on a full cost recovery basis.
Note: Prices are proposed to increase each year, capped at 2.5% plus inflation.
Source: Water NSW proposal and IPART analysis via IPART Website.

Table 2: Summary of New Water Administration Prices in the Gwydir Valley

Sources: Water NSW proposal and IPART analysis with GVIA comparisons via IPART Fact sheets.

For more information, see our Water Pricing page. 

Zara Lowien

Media Contact 0427 521 399