On 1 July 2012, the Essential Services Commission became the independent economic regulator of the South Australian water industry under the Water Industry Act 2012.
We have already consulted on the broad regulatory framework that we intend to apply to the water industry as part of the preparation of advice provided to the Treasurer in August 2011 and May 2012.
Pricing of retail services for SA Water will continue to be set by the Government, with our initial responsibility being limited to determining the annual revenue requirements. Our first revenue determination for SA Water will commence on 1 July 2013. We have released a Statement of Approach to the Economic Regulation of SA Water’s Revenues.
For other water businesses, we will have a broader price setting role, with an intention to develop pricing principles in the first instance. Our Discussion Paper commences our review of the precise forms of the pricing frameworks proposed to apply to service providers other than SA Water.
We will be undertaking several rounds of public consultation between now and the formal commencement of our regulatory framework on 1 January 2013. Submissions on our current consultation must be provided by close of business Friday, 24 August 2012.