WATER bills for NSW irrigators will start to rise by as much as 85 per cent from July this year as State Water tries to avoid again forgoing the amount of money it lost during the drought.
The increases will happen along each of the 11 major water systems Statewide and will occur incrementally in the next four financial years.
About a dozen high security licence holders with access to 15,000 megalitres of water a year in the Gwydir Valley will have the biggest cost increase of 85pc.
Two hundred general security licence holders in the Gwydir with access to 509,000Ml will have their bills hiked 35pc.
Southern NSW irrigators on the Murray and Murrumbidgee, who have done it especially tough in recent years, got off relatively lightly.
High security bills on the Murray will rise 14pc while general security will increase by 11pc.
High security licence holders tapping Murrumbidgee water will see charges rise by just four per cent while general security costs will not be hiked at all.
NSW Irrigators chairman, Col Thomson, Wentworth, said cost increases could be more easily spread across the greater number of irrigators in southern NSW.
“Most southern irrigators will think those increases fair but those hikes in northern NSW are astronomical – I don’t think anybody expected a rise by that much,” Mr Thomson said.
State Water was left $83.2m short in the past four years, $56m of this because the drought stopped people using water.
The Independent Pricing and Regulatory Tribunal (IPART) this week gave State Water the opportunity to introduce a “volatility allowance” that allows it to collect an extra $3m a year.
Costs will also rise because State Water will be allowed to collect a 7.4pc return on capital as opposed to 6.5pc.
Gwydir Valley Irrigators Association chief executive, Michael Murray, said State Water would have too many avenues to minimise risk and charge irrigators.
“We were told we were at full cost recovery after the last price adjustment – we’ve only had about four per cent inflation since and our costs will go up much more than that,” Mr Murray said.