As part of our Pricing Submission 2024-28, Goulburn-Murray Water (GMW) is working with customers to determine how our water supply district service occurs in the future.
Our water supply district service delivers water all year round through pumped and pipelined supply systems to customers in the Normanville, East Loddon, Mitiamo and Tungamah regions. Customers in East Loddon (North) and West Loddon receive supply to fill their dams up to two times a year.
The notification of intention to take water is not required by customers. Water is normally available on demand where customers adhere to their pipeline capacity share.
Pumped and pipelined water supply district capital can be categorised into the following areas:
- Pump Station and Storage Basin
- Pipelines
- Service points.
Our asset management practices ensure that we make efficient decisions around the replacement of our assets based on sound data, information, risk and customer insights.
There will be some minor upgrades required for the main system pump set to replace aged components. Pipe burst frequency is also not expected to increase significantly.
Customers across the four pumped and pipelined water supply districts have had their service and tariff structures/price paths developed as part of the consultation preceding the pipelining of each district.
Currently there are two distinct services provided between the four districts (with varying service standards):
- a 365 day pipelined service for East Loddon, Mitiamo, Normanville, and Tungamah/Cosgrove (with varying levels of service standards as outlined within the individual terms and conditions for each area)
- a gravity dam-filling service for East Loddon (North) and West Loddon.
East Loddon (North) and West Loddon are the last two very small gravity water supply districts, with existing operating inefficiencies as a result of old and unmaintained channels and a small customer base.
GMW plans to work with customers to deliver a future service strategy and tariff review, for the water supply districts that will assess different options for future improvement of infrastructure, trade and carryover, and aggregate pricing.
GMW will undertake an initial review over the four years, with any outcomes to be proposed as part of the next draft pricing submission.
Our operating costs are proposed to be largely unchanged over the four years. Minor variability could occur due to future energy price increases.
Pricing
On average, East Loddon (North) customers can expect an average bill increase of up to 9% ($110/annum), plus CPI, each year for the four year price period from 2024 to 2028. This increase is due to the residual costs of running the network with a smaller customer base, following the establishment of the Mitiamo district.
While a number of cost efficiencies have been realised, they do not offset the running costs passed on to customers through an increase in the Infrastructure Access Fee.
On average, East Loddon customers can expect an average bill increase of up to 5% ($50/annum), plus CPI, each year for the four year price period from 2024 to 2028.
An increase in the Infrastructure Access Fee will ensure that essential maintenance can be undertaken and service needs are met. The overall increase will be slightly offset by reductions in the Service Point Fee (D&S).
On average, West Loddon customers can expect an average bill increase of 3% ($25/annum), plus CPI, each year for the four year price period from 2024 to 2028.
Like East Loddon, an increase in the Infrastructure Access Fee will ensure that essential maintenance can be undertaken and service needs are met.
On average, Normanville and Mitiamo customers can expect an average bill increase of up to 1%, plus CPI, each year for the four year price period from 2024 to 2028.
An increase in the Customer Fee will be offset by a reduction in the Service Point Fee (D&S), and like East and West Loddon, small increases in the Infrastructure Access Fees are to ensure that essential maintenance can be undertaken and service needs are met.
Mitiamo customers have seen improvements in reliable service delivery as well as on-farm water tank installations. While price increases were experienced in the last price period to enable this new service establishment, Mitiamo pricing structure is now similar to other pumped and pipelined water supply districts.
Tungamah customers can expect up to a 9% average bill decrease in 2024/25, with price stability expected for the remaining three years.
The initial reduction is to support the alignment of Cosgrove customers with Tungamah prices by 2027/28. Cosgrove customers will be contacted directly in relation to their individual price impacts.
In addition, while there will be an increase in the Customer Fee, a reduction in the Service Point Fee (D&S) will offset this increase.
Typical customer bill (excluding CPI)
Proposed pricing for 2024-28 (excluding CPI)
Note: All prices and typical bills 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.
