The stock and domestic water users say they are facing a $930 licence renewal fee, with the fee expected to rise above $1000 next year, despite what they say are serious questions about whether the regulatory process behind the charge is necessary or proportionate.
G-MW Concerns, which represents hundreds of Goulburn-Murray Water domestic and stock diverters, has again called on Victorian Water Minister Michaela Settle to intervene.
The group says the problem stems largely from a 2014 government policy requiring on-site inspections when take-and-use licences are renewed in capped catchments.
With all northern Victorian catchments now capped, the requirement applies to small domestic and stock licences, including licences for only a few megalitres.
G-MW Concerns says the inspection requirement is disproportionate to the tiny volumes used by these customers and is a major contributor to the renewal cost.
It has proposed that small D&S licences be exempted from routine physical inspections, or that a much cheaper process using geo-tagged photographs be adopted.
Goulburn-Murray Water general manager of water delivery services Warren Blyth said G-MW was improving data collection and transparency for its diversions customers, including those on unregulated waterways, as part of a current review of the costs of providing services to these customers.
“The Diversions Cost Review is broadening the collection and accuracy of G-MW’s data and testing the assumptions made in calculating all of its diversions tariffs.
“G-MW has also established a customer reference group as part of the Diversions Cost Review to assist G-MW in testing the assumptions underlying calculations of its diversions tariffs with a commitment to adjust prices and tariffs, as required.
“G-MW will continue working with its customers on diversions matters including during its Price Plan 2028,” Mr Blyth said.
The Essential Services Commission has declined to revisit the current fee, indicating that the issue can be considered in its 2028 price review.
The minister has responded to G-MW Concerns, saying she does not regulate G-MW's fees, while also acknowledging that the fees include the cost of on-site inspections.
G-MW Concerns spokesperson Cameron Reid said this leaves small water users caught between the regulator and the government.
“The ESC says the inspection requirement is a matter for the minister and DEECA, while the government says the minister does not regulate the fees. Meanwhile, the bills have already been issued.”
G-MW Concerns is also concerned that new water-use estimation requirements could impose further costs on unmetered domestic and stock users. The group argues that their water use is small and that the existing approach of estimating use by reference to the licensed entitlement is simple and effectively cost-free.
G-MW says annual inspections are not an activity that forms part of the licence renewal process or its costs.
G-MW Concerns has asked Minister Settle to provide a substantive response and to consider changing the inspection policy before thousands of licences come up for renewal in 2027.
More information on the Diversions Cost Review is available on G-MW’s Your Say website at https://yoursay.gmwater.com.au/diversions-cost-review
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