Rural water users in NSW could see their costs more than double over the next five years if IPART accepts the WaterNSW pricing proposal released today.
NSW Irrigators' Council CEO Claire Miller said pricing proposal recommends hiking water bills by 21-24% every year for five years, adding up to $40,000 to a 'typical' farmer's water bill by 2030.
"NSWIC is alarmed by this proposal and urges stakeholders across industries to understand the implications. Many stakeholders are not fully informed about the proposed prices, leaving them at risk of being unprepared until it is too late," Ms Miller said.
"This translates to the typical farmer with a high security entitlement paying $7924 more each year and the typical general security entitlement holder paying $3840 more each year.
"But WaterNSW's typical farmer scenario masks IPART's valley by valley pricing scenarios, in which different valleys are facing cumulative price increases of 200% and more over five years.
"These pricing increases are simply unaffordable - they will send family farms and other rural industries using water out of business.
"The water pricing model in NSW is fundamentally broken when Rural WaterNSW customers are currently covering 80-100% of both operating and capital expenses.
"Many of these costs are for public good services and activities on behalf of the broader community, such as environmental planning and protection, recreation, cultural and managed environmental flows, and the construction of fishways.
"It should not fall upon rural water customers to pay for these additional public good services.
"Rural water customers should be charged only to the extent of what it costs to deliver water, and that all other costs associated with water management should be shared across the community via the public purse."
"WaterNSW's revenue requirements are rising faster than businesses' capacity to pay. Rural water customers are already grappling with soaring input costs - interest rates, fuel, insurance, machinery, wages, and energy.
"This is not just about farmers; everyone will feel the pinch from racing, to manufacturing, mining, processing and competitive sports like golf."
Landholders using irrigation are also facing higher water allocation prices due to State and Commonwealth environmental water recovery. Few rural water customers can absorb these exorbitant increases in their water costs without severe financial distress.
"Price increases of this magnitude threaten the viability of small and medium family farms, leading to closures of businesses, lost employment, and a decline of industries critical to the economic and social wellbeing of regional communities.
"If such drastic changes were proposed in any other sector, they would be met with widespread opposition. We cannot accept this unreasonable price rise and must make our position clear."
NSWIC has detailed the issues with the current approach to pricing in its feedback to the WaterNSW consultation, which you can view [HERE].
NSWIC encourages all stakeholders to make a submission to the IPART review and make their position clear. If you would like further information or have any questions, please do not hesitate to contact us.
