ACCC releases draft decision on Water NSW 2015-16 charges for infrastructure services

The Australian Competition and Consumer Commission (ACCC) has released its draft decision on the charges that Water NSW is able to levy for infrastructure services in the Murray-Darling Basin during 2015-16.

Last year, the ACCC set the methodology for calculating Water NSW’s 2015-16 charges. The Water Charge (Infrastructure) Rules 2010 limit the ACCC’s ability to vary the charges through the annual review to circumstances where it is reasonably necessary to do so, having regard to Water NSW’s forecasts and/or price stability.

“A range of factors are influencing prices in the Murray-Darling Basin, primarily low water availability in 2014-15,” said ACCC Chairman Rod Sims. “This has led to some increases in charges in some valleys.

“The ACCC’s draft decision has considered updated forecasts for demand and will make an adjustment to the charges that Water NSW can levy as a result.

“However, following consideration of the likely effect of the charge increases on customers, the ACCC concluded that the ‘price stability’ test has not been satisfied and so the ACCC is not further varying the charges.”

The draft decision is to set the charges in accordance with the 2014 decision, with some adjustments to take account of updated forecasts not previously provided to the ACCC. The ACCC anticipates the decision will increase Water NSW bills for customers in the Border, Peel, Lachlan, Macquarie, Lowbidgee and Fish River valleys; bills for customers in other valleys will either fall or remain at 2014-15 levels.

The ACCC is seeking submissions on its draft decision by 5 pm on 6 May. Following consultation, the ACCC intends to make its final decision by 12 June. Water NSW’s application for review of its charges and the ACCC’s draft decision are available on the ACCC website.