Water and Sewerage

The Commission's Final Report and Price Determination on Water and Wastewater is now available

5 June 2008

The Commission's Final Report and Price Determination on Water and Wastewater in the ACT for the next five years is now available.

The decision was previously announced on 11 April 2008.

Final Report (  )

The Five-Year Price Path for the ACT

7 April 2008

 

On 19 March 2008, Senior Commissioner Paul Baxter gave a paper on the five-year water price path for the ACT to the Energy and Water Regulation 2008 Conference in Melbourne.  The paper canvasses some of the practical matters faced by pricing regulators in determining the price of water, and comments on the complex issue of establishing a well functioning market for water.  A copy of the paper can be accessed below:

 

The Five-Year Water Price Path for the ACT 

Public Hearing on the Water and Wastewater Price Review - Price Determination

The Independent Competition and Regulatory Commission gives notice that a public hearing will be held on the Water and Wastewater Price Review – Price Determination on Thursday 14 February 2008.  The hearing will be held at the Novotel Hotel Canberra, 65 Northbourne Avenue Canberra commencing at 9.30am.

 

Any persons wishing to appear at the hearing should contact the Commission to register.  The Commission will confirm appearance times with those registered.  Registration of intention to appear should be made with the Commission before Monday 11 February 2008.  The Commission may be contacted by telephone: 62050799; facsimile: 62075887 or e-mail: silvana.cooper@act.gov.au

 

Transcript of Proceedings Public Hearing 14 February 2008 

Draft Decision: Water and Wastewater Price Review

The Commission received a reference from the ACT Attorney General instructing it to provide a price direction for water and wastewater services for the period from 1 July 2008 to 30 June 2013. In response the Commission has released its Draft Decision and Price Direction and media release on its investigation of prices for water and wastewater services.

Report 11 of 2007 (  ).

Corrigendum (  ).

Media Release (  ).

The Commission received the following submissions in response to Report 11 of 2007.

ESCC (  ).

Kevin Cox (  ).

Horticultural Society (  ).

Helen Hadobas (  ).

Peter Jansen (  ).

Dr Christopher Dorman (  ).

Nick Mayo and Sarah Clayton (  ).

ACTEW Response to Technical Regulators Report (  ).

ACTEW Response to Draft Decision (  ).

CEG Report for ACTEW - a methodology for determining expected inflation (  ).

Consultants  Report Capex/Opex Review

The Independent Competition and Regulatory Commission (the Commission) engaged McLennan Magasanik Associates (MMA) in conjunction with WorleyParsons (the Consultants) to conduct a review of the operating expenditure, capital expenditure, asset management practices, demand forecasts and ring fencing arrangements of ActewAGL and ACTEW’s Water and Wastewater Services in the Australian Capital Territory (ACT).

The focus of the study was to provide an overall strategic view of:

• Whether the proposed levels of capital and operating expenditure are reasonable and efficient
• The prudency of past capital expenditure

MMA Consultants Report (  )

 

9 April 2008

 

On 23 October 2007, the Chief Minister announced a suite of measures intended to create a secure and sustainable water supply for the ACT.

 

The Independent Competition and Regulatory Commission (the Commission) commissioned Halcrow Pacific Pty Ltd (the Consultants) to undertake a review of proposed capital and operating expenditure associated with the implementation of a number of water security measures to service consumers in the ACT.

 

The primary objectives of the assignment were to assess, in respect to capital and operating expenditure associated with the water security measures announced by the Chief Minister on 23 October 2007:

• the prudence and efficiency of the proposed capital expenditure for the water security program;
• the efficiency of the estimated operating expenditure for the water security
  program; and
• to establish and apply a reasonableness test where sufficient information is
  not available to test prudence or efficiency.

The water security measures assessed as part of the review included:

• increasing the size of Cotter Dam;
• installation of infrastructure to transfer water from the Murrumbidgee River
  to Googong Dam;
• trial of a Smart Metering System; and
• design of a Demonstration Water Treatment Plant.

Halcrow Consultants Report

Review of water and wastewater pricing

Commission release Working Conclusions paper

 

The Commission has received a draft Terms of Reference requiring it to make a price direction for regulated water and wastewater services provided by ACTEW. The reference requires the determination of a price path to apply following the expiry of the current determination on 30 June 2008. The final report is to be released by 11 April 2008. The Commission has issued a media release notifying the community of the receipt of the draft Terms of Reference.

Media Release (  ).

Terms of Reference (  ).

As an initial step in the price determination process, the Commission is releasing a series of discussion papers. Any comments received will form the basis of the regulatory approach to be adopted by the Commission in the upcoming inquiry.

The first discussion paper describes the technical regulatory issues the Commission must consider in the context of the upcoming price inquiry. The discussion paper begins by providing an overview of the regulatory method to be adopted by the Commission. The paper then discusses in detail issues related to the length of the regulatory period, the building block method, calculation of the revenue stream, and the manner in which tariffs are calculated.

Report 14 of 2006 - Discussion Paper 1 - Technical Regulatory Issues (  ).

Media Release (  ).

The second discussion paper focuses on the question of the rate of return that ACTEW should earn on its investment in the water and wastewater business. This is a matter that has generated a deal of public comment in the recent months reflecting public discussion on the possibility of new investment in water recycling and reuse systems.

Report 3 of 2007 - Discussion Paper 2 - Return on Capital (  ).

Media Release (  ).

The Commission has released the final discussion paper on the pricing structure to be applied to water and wastewater services. This discussion paper focuses on the structure of prices for water and wastewater services. While the earlier discussion papers focused on the amount of revenue that ACTEW needs to recover costs, this discussion paper focuses on how to structure water and wastewater tariffs in order to recover this revenue.

Report 8 of 2007 - Discussion Paper 3 - Water and Wastewater Prices (  ).

Media Release (  ).

Responses Recieved on Report 8 of 2007:

Actew response to Discussion Paper 3 (  ).

Essential Services Commission (  ).

Scott Crawford (  ).

Terry Dwyer (  ).

The Commission will take into account the submissions received on the discussion papers when developing its working conclusions paper to be released September 2007. The Commission will then be seeking submissions on this paper which will inform the draft decision to be released by 14 December 2007. A public hearing and an opportunity for further submissions will follow the release of the draft decision before the Commission releases its final decision by 11 April 2008.

The Commission received the following submissions:

ACT Government Submission Nov 07 

ACT Government Submission Feb 08 

Actew main submission (  ).

Actew Information Paper (  ).

Queanbeyan City Council (  ).

Water Our Garden City (  ).

Terry Dwyer Paper (  ).

Kevin Cox Main  (  ).

Kevin Cox  Letter (  ).

Kevin Cox Commercial Water Rewards (  ).

Kevin Cox Reconciling self interest and the public good (  ).

Mrs Jo Forestier  (  ).

Atech Group (  ).

ACT Planning and Land Authority (  ).

 

Regulator Approves 2007 - 2008 Water Price Increases

The Commission has approved prices for water and wastewater services for 2007-08.

 Media Release (  ) 

Information Paper - Prices for Water and Wastewater Services

The current review of water and wastewater price determined a price path to apply for the four years from 1 July 2004 to 30 June 2008. In the lead up to the upcoming price inquiry which will determine water and wastewater tariffs to apply in the ACT from 1 July 2008, the Commission will be releasing a series of papers. These papers, and any comments received, will form a basis of the regulatory approach to be adopted by the Commission in conducting the upcoming inquiry.

This information paper provides the overall context within which the upcoming price inquiry will take place. In addition, the paper outlines the role of the Commission, ACTEW, and the ACT Government as well as providing an overview of the 2004-08 price determination, developments since the current price direction was finalised and a discussion of the Commission's recent inquiry into incentive mechanisms and how this relates to the upcoming water and wastewater inquiry.

Report 13 of 2006 - Information Paper Price for Water and Wastewater Services (  )

Media Release (  )

Water and Wastewater Annual Price Reset 2006 - 2007

The Commission has approved new prices for water and wastewater services in the ACT to apply from 1 July 2006. 2006-07 prices and an explanation of how they are determined can be found in the following Media Release (  ).

The approval of these prices follow an investigation by the Commission into the treatment of a range of costs unforeseen when determining the current price path. The information paper released by the Commission on the treatment of these cots and submissions received are available below under Report 6 of 2006 - Information paper water and wastewater annual price reset 2006-07.

In addition to the responses received on the information paper, the Commission sought additional details from Chief Minister's Department and the Department of Treasury on the funding of remediation works in the Lower Cotter Catchment. The responses received are as follows:

On Wednesday 31 March, the Senior Commission, Mr Paul Baxter, released the Final Report and Price Direction on the above inquiry.

• Final Report and Price Direction: Investigation into prices for water and wastewater services in the ACT: 31 March 2004 (  )

• Media Release: 31 March 2004 (  )

• Public Hearing: Water and Wastewater: 6 Feb 04 (  )

• Draft Report: Investigation into prices for water and wastewater services in the ACT: December 2003 Report (  )

• Media Release: 3 December 2003 (  )

• Attachment to Media Release: 3 December 2003 (  )

• Issues Paper: Investigation into prices for water and wastewater services in the ACT: 23 July 2003 (  )

• BRW review of expenditure, demand forecasts and cost attribution for the electricity and water services in the ACT (  )

Submissions on the Draft Report

• Maureen Chan (  )

• Robyn Cummins (  )

• Victor Stevens (  )

• Essential Services Consumer Council (  )

• Joint House Department, Parliament House (  )

• Conservation Council of the South East Region and Canberra (  )

• ACT Council of Social Services Inc (  )

• Joint position paper of the ACT Council of Social Services and the Conservation Council of the South East Region and Canberra: October 2003 (  )

• ACTEW Corporation: January 2004 (  )

• Queanbeyan City Council: 6 Feb 04 (  )

• ActewAGL: February 2004 (  )

Submissions: Issues Paper: Investigation into prices for water and wastewater services in the ACT

Copies of submissions to this paper can be found on the Archives Page

On Friday, 10 October 2003, the Senior Commissioner, Mr Paul Baxter, released the Final Report: Water Abstraction Charge.

• Final Report: Water Abstraction Charge: 10 October 2003 (  )
• Media Release: Final Report: Water Abstraction Charge: 10 October 2003 (  )
• Draft Report: Water Abstraction Charge: September 2003 (  )
• Media Release: 9 September 03 (  )

A copy of the Water Abstraction Charge Issues Paper and the submissions may be found on the Archives Page

For more information go to the Utilities Licensing page.

To view licences the Commission has granted to service providers, under Section 37 of the Utilities Act 2000, please go to the Utilities Licensing page.

• Information Paper: Investigation into prices for Electricity and Water Services in the ACT: December 2002 (  )

• Investigation into ACTEW's Electricity, Water and Sewerage Charges for 1997/1998 (  )

• Investigation into ACTEW's Electricity, Water and Sewerage Charges for 1998/1999 (  )

• ACTEW's Electricity, Water and Sewerage Charges for 1999/2000 to 2003/2004 (  )
  
  
• ACTEW Electricity, Water and Sewerage charges for 1999/2000 to 2003/2004: Pass through of the Water Abstraction Charge Report (  )

Codes

• Industry codes 
  
• Technical codes