As part of Pricing Submission 2024, Goulburn-Murray Water (GMW) is proposing to reduce the number of subsurface drainage pricing entities.

GMW is also proposing to phase out the Water Use Fee.

This will help us work towards a simpler, fairer and more cost-reflective drainage tariff.

Our customers have told us that the drainage tariff is overly complicated and difficult to understand.

Amalgamating services into new pricing entities

GMW is proposing to amalgamate subsurface drainage pricing entities in the GMID to simplify tariffs.

The new subsurface drainage pricing entities would be organised into East and Central areas.

The amalgamations would reduce the number of GMW subsurface drainage entities from four to two.

This change would see the following amalgamations:

  • Shepparton and Murray Valley areas will become East Subsurface Drainage
  • Central Goulburn and Rochester areas will become Central Subsurface Drainage.

GMW does not provide subsurface drainage services in Loddon Valley, Torrumbarry and Tyntynder.

The alignments of East and Central are based on similarities in location, customer enterprises and current local circumstances and needs.

Amalgamating the areas will help simplify our subsurface drainage tariff for customers.

This change will impact all customers in the GMID who pay subsurface drainage fees.

We are asking our customers for feedback on this proposal.

As a GMW customer, do you support amalgamating the associated areas into East and Central?

Phase out the Water Use Fee

The current subsurface drainage tariff is calculated by a combination of an Area Fee (based on property size) and a Water Use Fee (based on the volume of water delivered to the property).

We are proposing to phase out the Water Use Fee.

The Water Use Fee will be gradually phased out over a period of time.

Water use is no longer a clear cost driver or relevant way to calculate drainage charges. The cost drivers of the subsurface drainage system is no longer related to the amount of irrigation water being used.

We want to hear from customers about how we should implement the removal of the Water Use Fee.

The change and price impact can take place over the next regulatory period (2024-28) or over two regulatory periods (2024-28 and 2028-32).

Both options would see gradual increases in pricing on your accounts over these periods, but doing so over two regulatory periods would lessen the impact.

As a GMW customer, would you prefer the Water Use Fee be phased out over one regulatory period (2024-28) or over two regulatory periods (2024-28 and 2028-32)?

Changes to pricing

On average, customers will see the Water Use Fee reduce across the next regulatory period before it drops to zero and is phased out.

While this occurs customers will see an increase in drainage Area Fees across the regulatory period and the areas align to East and Central for subsurface drainage by 2027/28.

Proposed pricing for 2024-28 (excludes CPI)

Note: All prices provided above are calculated excluding CPI and could be subject to change as part of the consultation and determination process for the 2024-28 Pricing Submission.