On June 16 the Essential Services Commission (ESC) released its final decision on our 2016-2020 Water Plan. In its final decision the ESC approved:
- Revenue of $472.3 million;
- Operating expenditure of $378.8 million;
- Capital expenditure of $136 million;
- A two district pricing model for gravity irrigators;
- A four-year transfer of new pricing for diversions customers, and;
- The addition of seven new service standards, changes to nine service standards and the removal of four service standards.
The ESC's decision means we will be able to set average prices for our larger and medium customers that will be flat or fall. Our smaller customers will see small prices rises.
It also means our gravity irrigators will move to a two-district model that will not only provide more stability for our customers it will save our business about $1.6 million over the life of the plan.
The final decision by the ESC also shows they have acknowledged ongoing dry conditions will have an impact on our operating costs.
This is also why we will continue driving efficiencies from our business. As we have always done we will pass further cost efficiencies onto our customers when they have been achieved.
We think it’s important to note, since we first tabled our water plan we’ve already made further sustainable savings of $1.1 million per annum.
The Essential Services Commission, an independent regulatory authority that assesses our pricing and service standards to ensure they are fair and reasonable for our customers.