Sunwater’s $2B revenue boost ‘won’t affect’ farm water bills

An embattled water company has moved to ease farmers’ fears of massive water price hikes, assuring them a forecasted 430 per cent revenue increase will not come from their pockets.

The AtkinsRealis review which revealed Sunwater’s revenue forecasts will rise from $384 million to $2039 million over five years.

A Queensland water company has moved to allay farmers’ fears it was going to squeeze them dry with massive water price hikes after a 430 per cent revenue increase was forecasted.

State-owned water company Sunwater’s revenue is predicted to swell from $384.8 million this year to $2.03bn in 2029, according to an independent consultancy report.

The company, which delivers about 40 per cent of the state’s commercially-used water, came under fire from customers, mainly farmers, who were concerned the increase in revenue would come from their pockets via increased water prices.

The review, by consultants AtkinsRealis, also revealed SunWater was expected to spend more than $38 million, or an average 8 per cent of that total revenue, on technology and a digital billing system.

The AtkinsRealis review shows Sunwater’s revenue is forecast to rise from $384 million to $2039 million.

Queensland Farmers Federation, Queensland Canegrowers Association, Cotton Australia, Pioneer Valley Irrigators and irrigators from across the state have all raised concerns about future water pricing.

Farmer complaints about the massive revenue increase were some of the 27 submissions to the Queensland Competition Authority, which also published a damning draft report on SunWater in June.

The QCA report also revealed Sunwater’s Information Communication and Technology budget was expected to suffer a massive $38 million cost blowout.

But this week, SunWater moved to calm the farmers’ fears claiming the majority of the $2bn revenue figure in the AtkinsRealis report would come from government cash injections not increased water prices to farmers.

SunWater CEO Glenn Stockton, who started with the company in 2020, did not respond to questions but a SunWater statement said the QCA’s predicted revenue from irrigation customers would be $104 million in 2025-26, increasing incrementally to $120 million in 2028-29.

SunWater CEO Glenn Stockton. His company has assured farmers their water prices will not be affected by the revenue increase from $384 million to $2.03 billion.

The company said its water prices for irrigators would not exceed the cost of providing water with price shifts for irrigators reflecting changes to the cost of delivering a safe and reliable water service.

“The majority of the $2bn figure in the AtkinsRealis report will be derived from government equity injections for Sunwater’s dam improvement projects which are subject to change,” a SunWater statement said.

“This is not revenue, and is not generated from irrigators.

“Sunwater’s irrigation water charges are recommended by the Queensland Competition Authority and set by the Queensland government.”

The state’s new Water Minister, Warrego MP Ann Leahy, the daughter of a farmer, has also vowed to investigate the water company’s spending.

New Water Minister Ann Leahy has vowed to investigate Sunwater’s revenue forecasts along with its predicted $38 million cost blowout on a new IT system.

“Reducing the cost of living for Queensland families and farmers is a priority for the new government, particularly after Queensland has experienced some of the largest price rises in water costs of any state,” Ms Leahy said.

“That’s why the government has committed to review all current water plans to find ways to boost water supply and reduce costs for farmers and families.”

It is not the first time farmers have complained they were being squeezed dry by the water company.

More than five years ago, Toowoomba North MP Trevor Watts vowed to pull the water organisation into check and called on the then-Labor state government to “stop using farmers as cash cows”.

Toowoomba North MP Trevor Watts, who is the new Assistant Minister to the Premier and cabinet, refused to comment but has complained about Sunwater’s spending since 2018. Picture: The Courier-Mail

Mr Watts, who has been named Assistant Minister to the Premier for Cabinet and South West Queensland, also refused to comment on the farmers’ fears.

However, in 2018, Mr Watts claimed Sunwater’s 2018/19 annual report showed the utility had “enjoyed a massive jump in revenue despite a drought in which Queensland irrigators are battling to stay in business”.

“As well as increased revenue, the 2018/19 annual SunWater report also shows the state government-owned corporation has approved large CEO and corporate salary increases.

“Water prices are skyrocketing and every cent SunWater receives comes at the expense of water users who have to count every drop,” the website said.

Under state policy, costs associated with dam improvement projects are not passed on to irrigation customers and Sunwater’s irrigation water charges are recommended by the QCA and subsequently set by the state.