From 1 July, prices increased by 5.8 per cent plus inflation (CPI) of 2.4 percent, for bulk water customers after the Independent Pricing and Regulatory Tribunal (IPART) released its final report on the maximum prices WaterNSW can charge.

According to IPART the typical farmer with a 500 ML general security licence in the Murrumbidgee Valley will pay an additional $227.

NSW Irrigators’ Council CEO Claire Miller called it a “cost squeeze on NSW farmers” and said it was disappointing that IPART had shifted from the more affordable price rise proposed in its information paper last month.

In May, IPART indicated a 1.9 percent plus CPI price rise.

“Under our draft decisions, prices for WaterNSW Rural Valleys customers would increase by 1.9 per cent plus inflation from 1 July 2025, and then by inflation only on 1 July 2026 and 1 July 2027. 

“This includes WaterNSW’s proposed costs for the Dams Safety Levy, crane and electrical safety expenditure,” IPART said upon the release of its information paper on May 14.

“This is disheartening for farmers across NSW whose hopes were raised that their bills would remain manageable for the next 12 months while they are under pressure with surging input costs, high interest and the impact of flooding and looming drought,” Ms Miller said.

“The determination underlines the need for the NSW Government to urgently reform the flawed pricing model and corporate structure driving unaffordable hikes in rural water bills over the last 10 years.”

In the lead up to the IPART decision, WaterNSW submitted a proposal to the state government to increase rural water prices by an average of 22 per cent each year from 2025 to 2030.

In a statement IPART said it is still not convinced that all the increased costs proposed by WaterNSW are sufficiently justified as necessary or efficient, or that they should all be passed on to the customers. 

“The Tribunal has issued a short determination to allow more work to be done on the broader challenges identified through this price review.”