The Independent Pricing and Regulatory Tribunal (IPART) is calling for feedback on Water NSW prices for rural bulk water services and on prices the Water Administration Ministerial Corporation (WAMC) can charge for providing water management services.
The Tribunal released two Issues Paper’s yesterday (15 September) which identify key issues for the price reviews.
IPART said it was currently reviewing prices and costs for rural bulk water services provided by Water NSW, with the review to set prices which would apply from 1 July next year.
It said WAMC’s water management services were provided on its behalf by the Department of Planning, Industry and Environment (DPIE), Water NSW and the Natural Resources Access Regulator (NRAR)
“WAMC proposes large increases in water planning, management and regulation costs,” the Tribunal said.
“It has indicated these increases are needed to meet its customers’ priorities and provide a higher level of service than in the past,” it said.
“IPART’s price review will focus on assessing whether WAMC’s proposed cost increases are justified.”
“We will also consider what customers should pay, and how costs should be shared between customers and the NSW Government on behalf of the broader community.”
IPART said Water NSW had also proposed large increases in costs to maintain its service levels and meet its regulatory and legislative requirements.
“It is also seeking to pass on large increases in Murray-Darling Basin Authority and Dumaresq-Barwon Border Rivers Commission costs in some valleys,” the Tribunal said.
“We recognise that regional and rural customers and communities have endured a long and extreme drought, bushfires and the ongoing effects of the COVID-19 pandemic.”
It said it would seek to balance a range of factors including the need to set prices that reflected efficient costs as well as customer bill impacts and affordability.
Submissions on the Issues Papers will be open until 16 October.
IPART’s 31-page Water NSW Issues Paper, including information on how to have a say, can be accessed at this PS News link and its 39-page WAMC Issues Paper at this link.
