Revised irrigation tariffs from 1 July 2006
Goulburn-Murray Water (G-MW) has announced that it will proceed with reform of its gravity irrigation tariff from 1 July 2006 to introduce a revised pricing structure to better reflect the services received by customers.
The tariff was to be changed as part of water entitlement unbundling (splitting water rights into a water share, a delivery share and a water-use licence), but unbundling has now been deferred until 1 July 2007.
Chairperson Don Cummins said that by proceeding with the tariff reform from next year, G-MW is responding to community concerns about continued revenue loss incurred when customers permanently transfer their water entitlement out of a district.
""With the current tariff, each customer's fixed cost payments for the channel system are based on the water entitlement attached to the property,"" Mr Cummins said.
""This means that when water is permanently transferred out of the district, the prices increase for the remaining customers because there are fewer people to meet the costs of maintaining the system.
""Under the proposed tariff, the fixed payment will be linked to the property's access to the channel delivery service.
""This way, customers will be able to sell their water entitlement, but they will still continue to contribute to the upkeep of the channel system that supplies their properties.""
Since the Minister for Water's recent announcement that unbundling would be deferred until 1 July 2007 , there has been a groundswell of support for tariff reform to proceed. Tariff changes are supported by a range of stakeholders including VFF, G-MW Water Services Committees and the Minister for Water.
""G-MW felt is was important to make an early announcement on tariff reform, as customers are looking for certainty and the water market is looking for direction,"" Mr Cummins said.
""Also, by reforming the tariff 12 months ahead of the rest of the unbundling process, there is now more time for irrigators to gain a greater understanding of all of the changes.
""The aim is to move as far as possible to a tariff that is consistent with unbundled entitlements, in line with proposals that have been widely discussed at public forums on water reforms.""
In the 2006/07 financial year the payment for fixed charges, known as the Infrastructure Access Fee, will be based on the water entitlement attached to the customer's property on 30 June 2006. G-MW will approve applications for permanent transfers that become effective from 1 July 2007 on this basis.
Customers will need to inform themselves of the implications of tariff changes and factor them into decisions regarding the permanent purchase or sale of water entitlements.
To give all customers time to consider their options, applications for permanent transfer of water entitlements for 2006/07 will be accepted from 15 February 2006.
