The Independent Pricing and Regulatory Tribunal (IPART) released its final decisions on the price WaterNSW can charge for bulk water, revising its original figure for the Peel Valley from $58 a megalitre to $18 a megalitre.

It’s the highest reduction in the state and Peel Valley Water Users Association president Tom Woolaston said it was exactly what local irrigators were after.

“It is great news for all irrigators in the Peel Valley, it’s absolutely wonderful,” Mr Woolaston said.

“It’s a huge difference and a big saving for me and other irrigators. That huge saving will hopefully mean more produce coming because it will be cheaper to irrigate.”

Mr Woolaston said the cost of water was so high “it was only a matter of time” until he and others pulled out of the irrigation industry. 

“This is a much fairer system, it’s very close to a user-pays model,” he said.

The changes won’t kick in for another 12 months, until the next financial year, but Mr Woolaston said local irrigators could weather the wait.

“At least there is light at the end of the tunnel,” he said.

Tamworth MP Kevin Anderson has been fighting to fairer water prices for four years, and said he had been working had behind the scenes.

He said the huge saving came from IPART’s decision to support the 80/20 split of fixed charges versus usage charges, rather than a 40/60 split.

“When it comes to water pricing, it’s not something that you can change overnight,” Mr Anderson said.

Mr Anderson said some local irrigators were struggling to make ends meet due to the extremely high prices.

“They’ll get a windfall that they’ll be able to enjoy at long last, after a really hard battle,” he said.

Tamworth Regional Council water director Bruce Logan said in April, council determined not to support the 80/20 split.

“[Council noted] a reduction in projected savings from $253,313 to $76,638 if that model was adopted,” he said.

“Whilst the new prices will mean we pay less for water sourced from Chaffey Dam for the next four years of the determination up to the year 2021/2022, the decision by IPART to change to 80/20 from July 2018, means council will forgo over $150,000 in savings per year.

“The 80:20 ratio is what Peel Valley Irrigators and WaterNSW had indicated to IPART they would prefer as it would see a reduction in charges levied on general security licence holders like irrigators.”