2026/27 Water Pricing

Hydro Tasmania has advised that the final Cressy 1 water charge for the year ended 30 June 2026 was $29.71 per ML. This is up from $22.51 from the prior year. 

In discussions with Hydro, it appears that the main reason for the higher Cressy 1 water is that, unlike the water of other schemes, it is based directly on a complex formula that synthesizes the generation revenue forgone on water that is consumed by the Scheme and does not generate additional power at Trevallyan. As Hydro’s overall generation for this year and the last has been curtained due to the manner in which Basslink has been operated, this has resulted in an unexpected surge in the price for Cressy 1 that will impact the 2025/26 profitability of the Scheme and pricing for the 2026/27 year. 

As it is expected that the benefits of the Cressy 1 calculation will be restored in future years, returning us to the point where it produces a lower water price than the general Hydro cost, the Board has resolved to continue this pricing; it does mean however, that there is a need to recover the higher cost of water while maintaining an adequate operating buffer for unexpected cost increases and future Scheme obligations for the following season and the following has been set as our water pricing. 

The above charges are stated net of the Asset Renewal Levy. The Board appreciates that the increases are significant but considers them necessary for the ongoing financial sustainability of the Scheme and to reflect the short-term increase to the Cressy 1 price. 

In regard to the balance of charges, these have been increased to allow for our general costs of doing business only. A table of charges follows. Unless noted, these fees are GST free.