Direction from Queensland Government has been given to the Queensland Competition Authority to investigate and report on appropriate prices for irrigation services using the regulatory asset base approach.

Overview

The Queensland Government determines the regulated irrigation pricing for Seqwater customers, based on a recommendation from the Queensland Competition Authority (QCA).

Seqwater recently undertook a QCA price review for the period 2025–29. In June 2025, the Government issued a pricing direction notice to Seqwater, adjusting the price path duration from four years to a two-year period, commencing on 1 July 2025 and concluding on 30 June 2027. During this two-year period, the QCA has been directed to conduct a review of regulated asset based (RAB) pricing. Government will consider the findings of the review, and then determine the pricing that will be applied from 1 July 2027.

Seqwater will now prepare a proposal for the QCA using the RAB based pricing methodology for 2027-28 and 2028-29, with our submission due to QCA by 27 February 2026.

For more information regarding the RAB pricing methodology please refer to Queensland Competition Authority website:

More about the RAB

Engagement

Seqwater is committed to proactive and collaborative engagement with its customers, maintaining a clear focus on their priorities and acknowledging the feedback received both recently and throughout the recent 2025-29 price review consultation.

There are two stages in our customer engagement plan: an initial consultation phase in October 2025, and a draft price review phase in December 2025.

Feedback from Stakeholders received will:

• Develop draft prices for RAB and renewals annuity approaches using existing QCA approved inputs in preparation for stakeholder engagement in December 2025/January 2026.
• Model and present the price impacts of both the annuity and RAB approaches for at least the next 10 years to help stakeholders understand potential long-term differences (if possible, extend out further forecasts).
• Investigate and model different options for setting the opening balance (e.g. zero balance, existing pricing annuity balance) and depreciation periods for the RAB approach and present the impacts.

Timeframe

Seqwater is required to undertake consultation and submit draft pricing to the QCA by 27 February 2026. The timeline outlines key dates.