This will be partially offset by increased variable user fees, but this will not cover all losses.
With a projected overall impact to the company of between $6 million and $10 million, the sale of more surplus water is proposed to claw back revenue where possible.
To ensure customers understand the proposed fee structure, and how this could impact their business, MIL has developed a number of information tools and resources.
The company will also be hosting webinars and customer meetings from today until April 10.
Following this engagement activity, customers will be invited to indicate their level of support for the proposed new fee structure via an online survey open from April 10-17.
The board will then make its final decision on whether to proceed with the proposed change or to maintain the current fee structure.
MIL CEO Ron McCalman said the proposed approach simplifies the company’s fee structure by removing fixed fees associated with delivery entitlements, increasing variable water delivery fee based on volume used, and aligning outlet fees to cost recovery.
He said it would reduce fixed costs paid by customers and reduce or maintain average cost for the majority of customers.
“Under the proposed new fee structure, fixed fees attached to DEs would be removed and replaced with an increased variable delivery fee,” he explained.
"This means that customers would not be charged a delivery fee in years they are not irrigating, offering much needed cost relief during dry cycles.
“When developing a solution to the cost inequity of the current fee structure, one of our driving principles was to minimise the negative impact on customers.
“To achieve this, the company made a conscious decision to increase its financial burden by lowering the overall average fee for customers.
"If the new structure is adopted, around 80 per cent of irrigation customers would benefit from a decrease in their average cost or see little to no change.
“To offset the reduced guaranteed revenue from customer fees, the company will be focusing on other revenue streams, such as water sales via Water Solutions.
“The Company will also continue to focus on attracting new water to the footprint, as demonstrated by Commonwealth Environmental Water Office and Murray-Darling Basin Authority engagement and projects.”
Murray Irrigation will be hosting three webinars and nine small, in-person meetings across the footprint.
Finley’s in-person meeting will be this Friday, Berrigan on April 1 and Jerilderie on April 9.
For the full list of meetings and webinar times, go to www.murrayirrigation.com.au/fee-structure-review-2026#CM.
The website also includes more information about the proposal, and a range of tools, including a customer calculator.
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