The group known as G-MW Concerns lost the review case, but said the process unearthed some issues, which they would be taking up directly with G-MW.
For years, the diverters, who hold licences to pump from rivers and streams in the north-east, have been complaining that they were over-charged for services which they said G-MW didn’t provide.
They took their complaints to G-MW, then to the pricing authority, the Essential Services Commission, and then asked for a review by VCAT.
They represented themselves in VCAT and faced off against barristers representing G-MW and the Commission.
Group representative Cameron Reid, from Porepunkah, said the material before the tribunal showed that G-MW had not clearly demonstrated that its charges reflect efficient costs, and that elements of the pricing model rely on assumptions that are not always supported by observable activity or verifiable data.
“The decision also highlights limitations in G-MW’s cost data and allocation methods, with some costs underpinning customer charges unable to be fully verified.
“The tribunal noted evidence raising uncertainty about the actual level of site inspections and monitoring activity, which form part of the justification for key fees.
“Although the ESC reduced G-MW’s proposed service point fee, it ultimately approved a pricing structure where underlying issues with data, assumptions and cost allocation remain unresolved.
“Importantly, VCAT made clear that it is not permitted to consider whether pricing outcomes are fair or equitable, and instead is limited to a narrow legal test. As a result, the decision should not be interpreted as an endorsement of the fairness of current charges.”
Mr Reid said the decision underscores the need for further work.
“This process has brought to light real concerns about how these charges are constructed,” he said.
“While the legal threshold for overturning the decision is very high, the underlying issues around transparency, evidence and fairness remain.”
Joint applicants to the VCAT review were Ian Roy from the upper Ovens, Nicholas Legge from the Acheron River and Rod Hall from the Ovens River tributary.
G-MW general manager of water delivery services Warren Blyth said G-MW is improving data collection and transparency for its diversions customers, including those on unregulated waterways, as part of a current review of the costs of providing services to these customers.
“The Diversions Cost Review is broadening the collection and accuracy of G-MW’s data and testing the assumptions made in calculating all of its diversions tariffs.
“G-MW has also established a Customer Reference Group to assist G-MW in testing the assumptions underlying calculations of its diversions tariffs with a commitment to adjust prices and tariffs, as required,” Mr Blyth said.
The work of the diversions cost review and the customer reference group is expected to be completed in June 2026.
Customer Reference Group members have drawn on their local knowledge and experience in contributing to the diversions cost review and work with G-MW.
Licensed diverters on unregulated streams are usually small water users who draw water from rivers or streams using their own pumping equipment.
They don’t usually have the right to special releases from reservoirs and must rely on natural flows.
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