Murray Irrigation Ltd is reviewing fee changes that are expected to turn the company's losses to profits.November 15, 2012 4:13am
Gradual price increases to be introduced by Murray Irrigation Ltd (MIL) over the next four years will eventually see the company turn around major operating losses.
The increases, outlined in the Network Service Plan (NSP), were initially implemented last year.
But MIL general manager Anthony Couroupis said recent customer feedback on the projections led to a Fees and Prices Policy review being developed in August.
Customers are now being invited to provide official feedback in two phases, the first of which ends on November 23.
Helping MIL recover expenditure costs in the new policy is the implementation of a number of new fees.
It will eventually see the company’s estimated profits go from a predicted loss of $2.6 million in this financial year to a projected $782,163 profit in 2016/17.
‘‘The new policy established a range of new fees, including landholding access, outlet and tiered usage fees,’’ Mr Couroupis said.
‘‘The board considers the current fees and prices structure provides sound signals to customers that encourage on-farm water sales and also encourage customers to consider how their landholding is connected to the Murray Irrigation water supply and drainage network.’’
The landholding access fee is charged per landholding, and was introduced last financial year.
It started at a cost of $1,020 and increased by $31 to $1051 this year. Over the next four years it will increase between $31 and $34 each year, with a fee of $1,182 payable in 2016/17.
The new fee adds more than $2 million to MIL’s income each year, which over five years is a combined $10,841,911.
Over the same five years the new outlet fees — to be paid for small, large and unmetered domestic pipes — will inject a combined $11,164,721 into the company.
Minor increases have been scheduled for variable standard water usage fees, which have also been divided into three different payment structures.
The tier one fee is for users of between 0-5 megalitres of water, who will be subject to MIL usage fee increases of between $1.14 and $1.26 per megalitre over the next five years - to $44.17 in 2016/17. Added to government charges, which will also increase slightly, the total charge per megalitre in 2016/17 will be $124.
Tier two sets a price for between 6-100ML used. It proposed MIL usage increases of between $0.31 and $0.34 to end up with $11.94/ML in 2016/17 and a combined fee of $26.32/ML.
Tier three sets the price for landholders who use more than 100ML, and the NSP recommends MIL usage charge increases of between $.015 and $0.17. By 2016/17 the MIL usage fee will be $5.97/ML and the combined charge will be $13.17.
The amount collected from MIL variable rates over the five year period is estimated at almost $16.3 million combined.
Southern Riverina Irrigators chair Ted Hatty said he believes the higher charges for small landholdings sparked the review.
He believes MIL, through the review, is trying to have a more balanced approach to fees and distributing costs.
He encouraged all customers to be part of the feedback process.
To make the feedback process easier, MIL has developed an online survey for customers. It can be accessed at www.murrayirrigation.com.au, and must be completed by 5pm on November 23.
Another consultation round will be held in February 2013.
A man has been arrested after the alleged sexual assault of a girl in Seymour in May.
Paradise Queen owner Travis Smith is preparing to take on hundreds of runners at this year’s Yarrawonga Mulwala Multisport Festival to be held on October 18-19.
As part of its continuing international development, Bega Cheese Limited signed a supply and distribution agreement on Friday, September 19, with one of China’s leading retail groups, Chongqing General Trading Group, to supply them with Bega branded UHT milk produced in Australia for distribution in China.
Murray Goldfields District
Darren Pain from Sportspower is encouraging people to support small businesses on Saturday.
National Party ticket up for grabs
Rail line manager sends out warning after trespassers get too close to tracks to take photos.
Terry Hogan has stood down as Mayor of Jerilderie Shire due to an ongoing battle with cancer.
Heathcote cheerleader Taylah Kurrle is part of the Cheer Factor All Stars team for the Duel in the Desert championship in Palm Springs, California.
International cricket superstar Adam Gilchrist becomes number-one ticket holder and junior program ambassador for local club.
Deni Ute Muster thank myriad of volunteers.
The only consistent thing about frost damage in crops was its random nature, a cropping expert told his field day audience at Finley last Friday.
Tears flowed freely from players and supporters on Sunday when Benalla lost the Goulburn Valley Football League grand final by three points.
Discover unbelievable local deals from local businesses every week in the Goulburn and Murray Valley area with Leapon.com.au!
Search properties for sale or rent across North Central Victoria and Southern NSW. Visit your local website for local homes....
Search for published and unpublished photos from McPherson Media Group newspapers and magazines. All our photos are available to purchase.
Place an advertisement in any one of McPherson Media Group's local newspapers.