Retail Pricing

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 its first independent revenue determination for SA Water in May 2013, setting maximum allowed revenues for drinking water and sewerage retail services for the three year period from 1 July 2013 to 30 June 2016.  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 more light-handed 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.