Prices for WaterNSW’s Rural Bulk Water Services from 1 July 2017 (formerly State Water Corporation)

IPART has reviewed the maximum prices that WaterNSW can charge for its rural bulk water services from 1 July 2017 until 30 June 2021. These services relate to storing and delivering water to entitlement holders in 12 valleys across NSW, and the Fish River Water Supply Scheme (FRWS).

WaterNSW delivers bulk water to irrigators and other licence holders on regulated rivers across NSW. It operates 42 large dams and weirs, and delivery infrastructure, to deliver water to around 6,300 customers.

We aim to set prices to allow WaterNSW to recover only the customer share of the efficient costs of its monopoly services.

Our Final Report sets out the process we have used and our key decisions in determining our prices. Key steps in this process include:

• Establishing the efficient costs (or ‘Notional Revenue Requirement’ – NRR) of WaterNSW’s monopoly services and allocating it between customers and the NSW Government.

• Determining the structure of WaterNSW’s maximum prices and setting them to recover the customer share of NRR for each valley.

• Evaluating the impact of prices on customers and other stakeholders.