Cotton Australia General Manager and Chair of the Queensland Farmers’ Federation (QFF) Water and Energy Policy Committee, Michael Murray, was part of a QFF delegation that met with the Queensland Water Minister in Brisbane early last week.

Key agenda items included Sunwater’s proposal to shift from an annuity approach to a Regulated Asset Base (RAB) approach for long-life asset renewals, the associated Queensland Competition Authority review, the delivery of the Queensland Government’s 15% discount on Sunwater and SEQ Water irrigation charges, and how the Minister intends to address inefficiencies within Sunwater.

It was a constructive meeting, followed by a more detailed briefing from departmental officials on both the Inquiry into the adoption of a RAB approach and the implementation of the 15% discount.

Cotton Australia, through QFF, will be actively participating in the RAB Review and welcomes feedback from growers on the advantages and disadvantages of this approach. Queensland irrigator representative groups have raised concerns, particularly around how the Weighted Average Cost of Capital (WACC) is determined, as this will have a significant impact on final prices.

Cotton Australia will meet with the Minister’s office again next week to further discuss the proposed move to a RAB. We have been advised that details on claiming the 15% discount on water charges will be available shortly, with applications to be made through the Queensland Rural and Industry Development Authority.