Section 35 of the Water Industry Act 2012 (“WI Act”) empowers the Commission to make a determination under the Essential Services Commission Act 2002 regulating prices, conditions relating to prices, and price-fixing factors for water retail services.
The Commission made a regulatory determination, to apply to SA Water for the period 1 July 2016 to 30 June 2020 (RD16). It was developed following a full independent review, with widespread community engagement by both SA Water and the Commission.
RD16 includes a price determination that sets four year revenue caps for drinking water retail services and sewerage retail services and specifies pricing principles for excluded retail services. It also establishes service standards and other customer service obligations set out in the Water Retail Code - Major Retailers that SA Water must meet during the four year regulatory period.
SA Water and the South Australian Government are responsible for setting specific prices (such as supply and usage charges for residential and non-residential customers) however, those prices must comply with the Commission’s allowed revenues.
A different approach to price regulation has been applied to other water retailers for the initial regulatory period (1 July 2013 to 30 June 2017) through a combination of pricing principles and a price monitoring framework.
An Inquiry is currently in progress to determine the most appropriate form of regulation for other water retailers from 1 July 2017. Further information is available on the Inquiry into regulatory arrangements for small-scale and off-grid water, gas and electricity services project page.