Below we present key information on our draft decisions for Water NSW’s rural bulk water services for customers in the Fish River Water Supply Scheme (Fish River Scheme). This information is not exhaustive and should be viewed in conjunction with our Draft Report and Draft Determination.

Draft decision on costs for the Fish River Scheme

Under our draft decisions, Water NSW’s costs are higher than those used to set prices for the 2017 Determination. The customer share of:

  • operating expenditure for Fish River Scheme has increased by 59% but is 6.9% lower than proposed by Water NSW
  • capital expenditure for Fish River Scheme has increased by 2% but is 3.8% lower than proposed by Water NSW.

Offsetting these increases, the cost of capital has decreased from 3.1% to 1.3%.

Draft decision on customer share of revenue requirement for Fish River Scheme over 2021 Determination

Note: UOM is the pay-back of "unders and overs mechanism" balance from the 2014-17 regulatory period.
Data source: IPART analysis.

What drives the change in costs for Fish River Scheme since the 2017 determination period?

Data source: IPART analysis.

Draft decision on prices for the Fish River Scheme

Under the ACCC rules, we are required to set prices for Water NSW that recover its full efficient costs of providing its bulk water services (net of any Government contributions). The table below sets out our draft decision on Water NSW’s prices, as well as prices that would recover Water NSW’s proposed costs on a 4 year full cost recovery (FCR) basis.

Draft decision on bulk water charges – Fish River Scheme ($/ML, $2021-22)

Current 2020-21 ($2020-21) 4 year FCR Proposed Draft Report Change current to proposed Change current to Draft Report Draft Report to proposed
BULK RAW WATER
Minimum Annual Quantity (MAQ)
Energy Australia ($/kL) $0.42 $0.50 $0.46 19.0% 9.5% -8.0%
Oberon Council ($/kL) $0.42 $0.50 $0.46 19.0% 9.5% -8.0%
Individual Minor Customers (annual bill) $84.00 $100.00 $92.00 19.0% 9.5% -8.0%
Usage up to MAQ ($/kL)
Energy Australia $0.26 $0.19 $0.31 -26.9% 19.2% 63.2%
Oberon Council $0.26 $0.19 $0.31 -26.9% 19.2% 63.2%
Individual Minor Customers $0.26 $0.19 $0.31 -26.9% 19.2% 63.2%
Usage in excess of MAQ ($/kL)
Energy Australia $0.68 $0.69 $0.77 1.5% 13.2% 11.6%
Oberon Council $0.68 $0.69 $0.77 1.5% 13.2% 11.6%
Individual Minor Customers $0.68 $0.69 $0.77 1.5% 13.2% 11.6%
BULK FILTERED WATER
Minimum Annual Quantity (MAQ)
Lithgow Council ($/kL) $0.68 $0.81 $0.76 19.1% 11.8% -6.2%
Individual Minor Customers (annual bill) $164.00 $194.00 $152.00 18.3% -7.3% -21.6%
Usage up to MAQ ($/kL)
Lithgow Council $0.39 $0.30 $0.51 -23.1% 30.8% 70.0%
Individual Minor Customers $0.50 $0.38 $0.51 -24.0% 2.0% 34.2%
Usage in excess of MAQ ($/kL)
Lithgow Council $1.07 $1.11 $1.27 3.7% 18.7% 14.4%
Individual Minor Customers $1.32 $1.35 $1.27 2.3% -3.8% -5.9%

Note: Water NSW’s proposed prices are based on prices that recover Water NSW’s proposed costs over a 4 year period on a full cost recovery basis.
Source: Water NSW proposal and IPART analysis.

Indicative bills under our draft decisions for the Fish River Scheme

The table below shows indicative bills for 2021-22 under our draft decisions, as well as indicative bills that would arise from Water NSW’s proposed prices (based on full cost recovery over 4 years).

Indicative annual bulk water bills for Fish River Scheme ($2021-22)

Current 2020-21 ($2020-21) 4 year FCR Proposed Draft Report Change current to proposed Change current to Draft Report Draft Report to proposed
Raw water
Energy Australia $3,837,940 $4,449,912 $4,348,602 15.9% 13.3% -2.3%
Oberon Council $631,220 $662,404 $702,204 4.9% 11.2% 6.0%
Individual Minor Customers $405 $419 $467 3.5% 15.5% 11.6%
Filtered water
Lithgow Council $1,546,780 $1,689,695 $1,775,456 9.2% 14.8% 5.1%
Individual Minor Customers $663 $615 $578 -7.3% -12.8% -5.9%

Source: Water NSW proposal and IPART analysis.

The indicative bills shown below are based on Water NSW’s proposed prices (based on full cost recovery over 4 years) and on our Draft Report prices.

Bills for Lithgow Council in Fish River Scheme

Data source: Water NSW proposal and IPART analysis.

Bills for individual minor filtered water customers in Fish River Scheme

Data source: Water NSW proposal and IPART analysis.

Bills for Oberon Council Lithgow Council in Fish River Scheme

Data source: Water NSW proposal and IPART analysis.

Bills for individual minor raw water customers in Fish River Scheme

Data source: Water NSW proposal and IPART analysis.

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Water NSW’s proposed costs, prices and indicative bills as presented in our Issues Paper released in September 2020