In response to concerns raised today by Federal Member for Murray Dr Sharman Stone, Goulburn-Murray Water confirmed that through its Water Services Committee consultation process G-MW is currently asking irrigator representatives what constitutes a world class service and what is a fair price for that level of service.
G-MW Managing Director David Stewart said, "We feel it's very important to allow local irrigators to advise on these matters and to shape the future services and price outcomes for the irrigation services they use."
G-MW also clarified other concerns raised in Dr Stone's statement.
"As we said at the release of our Annual Report, the $34 million loss is an ‘on paper' loss that does not flow through to pricing" said Mr Guy.
In its annual report G-MW is obliged to report profit/loss under the Australian Accounting Standards, however it is the Regulatory Asset Base (RAB) that determines revenue requirements.
"Under the RAB we do not depreciate assets that were on our books before 2004 or assets that have been funded by other investors. So our operating loss was only $5.5 million, but more importantly our consumptive revenue dropped by $7 million but thanks to efficiency improvements we were able to trim this back to $5.5 million and minimise the future price impact on our customers," said Mr Stewart.
Mr Stewart also rejected suggestions G-MW blocked sales of water by customers.
"We simply don't have the authority - if a transaction complies with the Victorian water trading rules it is approved," said Mr Stewart.
Mr Stewart also said it was important for the customers to be aware that they own more than $4.2 billion worth of water shares.
"G-MW doesn't own water and therefore we don't sell water. Our role to deliver water and our charges reflect the costs of operating and maintaining Australia's largest irrigation network. Unfortunately drought reduces the allocations available against water shares but it doesn't reduce the length of the channel network or number of dams to be maintained," said Mr Stewart.
"We have come through a number of extremely difficult seasons that have reinforced the need to streamline the key driver of costs - the extensive asset-intense network - but this must be done in a way that enhances future services and system affordability. And we are confident NVIRP's consultative processes involving irrigators from across the region will ensure irrigators will have the opportunity to determine what constitutes a world class service and what is a fair price for that level of service," said Mr Stewart.
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Media Contact: Linda Nieuwenhuizen
Position: Manager Stakeholder Relations
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