Claims uniform pricing will disadvantage Broken Creek irrigators

GMW has proposed the change in its latest submission to the Essential Services Commission, as part of its plans to introduce uniform pricing, across all of its six districts.

GMW general manager Customer and Stakeholders general manager Ann Telford said uniform pricing was one of the key proposals within the submission.

"It has been discussed in detail with every GMW Water Services Committee and at a range of other forums," Ms Telford said.

"Since our last pricing submission, we have had uniform pricing for five of our six irrigation districts"

Ms Telford said uniform pricing would result in a drop of about $500, or 17.4 per cent, for 250 Broken Creek irrigators..

"Our proposal to move to uniform pricing across all of our six irrigation districts will provide Broken Creek customers with a reduced Infrastructure Access Fee (IAF) from $2,925 per delivery share to $2,416."

Read more: Fairer deal for GMW customers

Currently, Shepparton is the only one of the five districts that has a separate pricing structure.

GMW recently lodged its pricing submission for 2020-2024 with the ESC.

But Murray Valley irrigator Patrick Connolly said that statement was misleading.

"It implies that, through uniform pricing, fees for Broken Creek will be reduced," Mr Connolly said.

"This reduction will occur if Broken Creek remains a Murray Valley customer, under the 5:1 model."

Shepparton still had 12 per cent higher costs than the median average of the other five districts.

Mr Connolly said service point fees had doubled in Murray Valley, and district irrigators using Dethridge wheels would see their costs increase from $250 to $450.

"GMW has submitted it, without hardly any consultation whatsoever, it's basically a done deal," Mr Connolly said.

"We now have to fight it, through the ESC."

GMW has confirmed there are 378 Dethridge wheels still in operation in the Murray Valley district and none on Broken Creek.

"Shepparton had an infrastructure access fee (IAF) of almost $4800 per delivery share in 2014 and has spent less than $20 million since and now will see their IAF almost halve," Mr Connolly said.

"An independent review found Shepparton had a higher cost of operations in 2016 and now has much lower costs.

"Can this be explained in more detail?

"One problem is that uniform pricing delivers the same price for each service but does not deliver the same service for the price."

Kaarimba dairy farmer Mark Bryant said the reason given for moving Broken Creek into Shepparton was because most of the water supplied by irrigators was from the Goulburn system.

"Our price is going up, purely to make the Shepparton district look better," Mr Bryant said.

"On the creek, we pay for our own pumps, none of the infrastructure is supplied by GMW, it's all supplied by us."

He said if Broken Creek irrigators were not shifted to Shepparton, that district would face an increase of 32 per cent.

"When they go to the ESC, that is too big of a difference," Mr Bryant said.

"It brings Shepparton to a point where it's only 11-12pc above everyone else, that's what they have told the ESC.

"They have used smoke and mirrors to make this look good, they have fudged the figures."

Irrigators disputed the level of consultation, with several saying GMW did not advise Murray Valley WSC of the plans to push Broken Creek into Shepparton.

"GMW organised a meeting for Broken Creek irrigators to discuss the proposed changes at Cobram with Shepparton WSC present," Mr Bryant said.

Murray Valley Water Services were not invited or notified of the meeting.

And Mr Connolly said he'd received phone calls from Broken Creek irrigators, asking why the WSC supported the change.

"I have never been asked if I support in principle, or fact, the proposed changes to Broken Creek."

Chris Bourke, Nathalia, said GMW "ticked the boxes" on consultation.

"They met with some irrigators but took absolutely no notice of what we had to say," he said.

"They sell us the water at the same price as they do to the gravity irrigators, but our level of service is not as good as in the Shepparton district," Mr Bourke said.

"We have to order water four days in advance - in Shepparton; they can do it in 24 hours.

"Nothing will change, except we will be billed as part of Shepparton."

He said single pricing would significantly bring prices down for Shepparton.

"It won't just be Broken Creek people subsidising Shepparton; it will be all irrigators in the Goulburn Murray Irrigation District."

Murray Valley WSC chair Jason Andrew said the GMW board should be answering the question as to how the decision was made.

"The single price path is a simpler model for them, but I think the board should be answering some of those questions," Mr Andrews said.

"I am an old Murray Goulburn customer, so I have lost a bit of faith, in boards, lately.

"The customer should be able to see how the decision was made."

Ms Telford said for many years Broken Creek customers received most of their irrigation water through the East Goulburn Main Channel, and Shepparton Irrigation area, without contributing to infrastructure operation and maintenance costs.

"GMW is now correctly allocating Broken Creek costs and revenue," Ms Telford said.

She said the decision was detailed in GMW's consultation draft document 'A Fairer Deal for All'.

It was made available for public comment from October 7 - November 4.

"We also presented on this topic, in person, at Water Services Committee meetings," Ms Telford said.

"If uniform pricing is not approved, Broken Creek costs and revenue will remain correctly allocated as part of Shepparton Irrigation Infrastructure.

"All gravity fed irrigation customers in the Goulburn Murray Irrigation District (GMID) will receive a reduction in Infrastructure Access Fees (IAF) of at least 17 per cent under the uniform pricing proposal."

Ms Telford said GMW's transformation project was driving almost $20 million in costs from the business annually and the savings were being passed on to customers.

"It is also because of widespread modernisation of the delivery system through the Connections Project.

Uniform fees mean the outcome of "same service, same price," Ms Telford said.

"We think that's a fairer deal for all."

GMW managing director Charmaine Quick said the corporation had achieved "significant reach" with customers.

There had been 1000 face-to-face conversations, 3000 online visits to 'Your Say', 1300 customer conversations, 36 customer forum participants, 18 customer workshops, three major customer events, 34 drop-in days and 75 Water Services Committee members days.

"We have heard our customers call for a reliable supply, credible business, fair pricing, efficient operations, responsive services and simple systems," Ms Quick said.

The ESC is seeking consultation from customers during their review process.

The public is invited to download the document and comment via a link at www.gmwater.com.au/yoursay

The consultation period ends on January 24, 2020 and the ESC will deliver a draft decision on the proposal in March 2020.

Further consultation will be carried out from March until April.

A final price determination will be made in June 2020, for implementation from 1 July, 2020.

This will set fees and charges for the next four years from 2020-2024.