Entitlement Storage Fees

Entitlement Storage Fees

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You have told us that everyone should pay the same storage fees - whether you are an irrigator, the environment or an investor.

“Non-water users should pay their share.”

You have told us that everyone should pay the same storage fees. No matter whether you are an irrigator, the environment or an investor.

Our current prices differentiate between water that is associated to land (a ‘water user’),or not (a non-water user). Where it is associated with land, customers pay a“system” price.  Where it is not associated to land, customers pay a “basin” price.

We agree that there should be no differentiation in pricing, on the basis of how water is used.  As such, we propose scrapping the water user/non-water user basis for charging.

Without the difference between water user and non-water user, all customers would pay the same price. We think that achieves what you have been asking for and we also believe it’s a fairer deal for all.

HAVE YOUR SAY: Do you support the proposal to charge water users and non-water users the same fee?

System Pricing

There is a choice of two options for this single price - system pricing or basin pricing.

Our storages are connected to two systems – the Goulburn and Murray systems. Each system is made up of a number of basins (you might think of them as river valleys). The basin price reflects the actual cost of providing storage services in that basin, whereas the system price is the weighted average across those various basins that form each system.

Basin pricing results in greater complexity and for customers in smaller basins, higher prices. This conflicts with your feedback regarding one service, one price and fairer pricing arrangements. As such, we propose moving to a two-system storage price for all water shares and there is a cost difference in providing storage services within those two systems.

We would apply a system price (weighted average) to all water shares, using the Goulburn and Murray systems.

The table below shows the price impacts for all high reliability water shares being charged a system price (note - it does not include bulk entitlement holders). It explores a two system (Goulburn and Murray) price. Note – the prices in brackets represent the current prices paid by water users.

HAVE YOUR SAY: Do you support a move to system pricing?

Take our survey and let us know what you think. Please answer the questions that are relevant to you - if a question is not relevant, you don't need to answer it.