Victoria’s independent economic regulator, the Essential Services Commission (ESC) has backed plans by Goulburn-Murray Water to charge a standard fee, until 2020, across four of its five irrigation districts.
ESC chair Dr Ron Ben-David said the decision would reduce water bills for many G-MW customers. He said Shepparton would have a separate tariff.
“Large and medium gravity irrigation customers will see prices fall by up to 10%, but we acknowledge that some small customers will see small price rises due to changes in same fixed costs including meter costs,” Dr Ben-David said.
“The impact on bills will vary from customer to customer,” Dr Ben-David said.
Dr Ben-David said the key issue, which arose during the review, was the implementation of tariff reform for irrigation customers.
“The Commission’s final decision approves Goulburn-Murray Water’s shift towards common tariffs for irrigation customers across five irrigation districts, with only Shepparton to have a separate tariff.”
Dr Ben-David said the Commission received a large number of submissions.
“We received valuable input to inform our decision about tariffs and prices,” he said.
“While we have approved Goulburn-Murray Water’s prices, we believe there is scope for them to consult further with customers to make tariffs more transparent and more cost reflective in the future.”
Also in the final decision, the Commission:
• approved changes to service point fees
• approved diversion tariff structures with a four year transition
• approved bulk water charges including increases in smaller basins
• continued with a revenue cap form of price control
• approved the continued structure for drainage and pumped irrigation and noted Goulburn-Murray Water’s intention to consult on these tariff structures before the next price review.
The Commission also approved the service standards Goulburn-Murray Water proposed in its 2015 submission.
Goulburn-Murray Water must report annually on its website and to its Water Service Committees on its performance against these service targets.
The Commission’s final decision and a fact sheet are available at www.esc.vic.gov.au/water
