Farmers across New South Wales may be granted a substantial reprieve from exorbitant proposed water bill increases that would have priced them out of business and Aussie food off the shelves.
IPART's draft WaterNSW pricing determination released today proposes only a 1.9 per cent increase in rural water bills in 2025-26 plus CPI, followed by CPI increases only in each of the following two years.
"This is massive discount on WaterNSW's proposed increases ranging from 3% to 35% every year plus CPI across inland and coastal valleys," said NSW Irrigators' Council CEO, Claire Miller.
"NSWIC and its members told IPART loud and clear the current water pricing model is broken and must be fixed if our farmers are not to be priced out of business and local NSW produce priced off supermarket shelves.
"IPART has heeded that message, stating that its draft determination will enable affordability, cost-sharing, services and other issues to be worked through over the next three years to June 2028.
"This is a substantial win for our members and all rural water customers across NSW."
The draft determination translates to farmers paying thousands of dollars less than was proposed in many valleys.
High-level analysis of the IPART tables suggests, for example, a typical farmer with a 500 ML general security licence in the Peel Valley will pay $233 more in 2025-26 instead of an estimated $3960.
In the Namoi Valley, for the same farmer, the difference appears to be $325 more instead of an estimated $3200. In the Hunter Valley on the coast, the difference is $306 compared with $2890.
In the Murrumbidgee, the same farmer is facing a $50 increase on WaterNSW charges, instead of an estimated $540, while in the NSW Murray, the difference is $31 more instead of an estimated $960.
"The devil is in the details, and we will be requesting more information from IPART to more accurately break down the impact in bills for the next three years, to help inform our submissions," Ms Miller said.
"This IPART draft determination is welcome prospective reprieve not just for farmers, but all WaterNSW customers with water licences including local government, sport, processing and food manufacturing.
"We welcome the recognition that rural water customers should not be paying for non-commercial, public interest activities that are cost-drivers for WaterNSW. These include water safety, environmental and social outcome activities additional to the core business of delivering water to customers.
"We encourage all rural water customers to make submissions to IPART by 3 June."
