Robusto Investments price determination - frequently asked questions
The following frequently asked questions provide information relating to the water retail services provided by Robusto Investments (trading as Compass Springs) (Robusto Investments) at Mount Compass. This includes information on:
- The recent statutory review process undertaken by the Commission and the subsequent preservation regulatory determination made by the Commission following undertaking this review process (made 3 October 2023)
- the final preservation regulatory determination to apply from 1 July 2023 to 30 June 2025 (made 29 June 2023)
- general queries relating to consumer protections, service and price, and
- the ongoing proceedings before the South Australian Civil and Administrative Tribunal related to the 26 August 2021 regulatory determination.
This document provides a summary and overview of the Commission’s review process and the varied determination, for the information of interested persons.
Outcomes of the statutory review process
(made 3 October 2023)
Why is the Commission undertaking a statutory review?
On 29 June 2023, the Commission made a preservation regulatory determination to apply to Robusto Investments for the 24-month regulatory period 1 July 2023 to 30 June 2025.
On 26 July 2023, Robusto Investments made an application for a review by the Commission of the preservation regulatory determination made by the Commission, pursuant to section 31 of the Essential Services Commission Act 2002.
For more information on the statutory review process and relevant background information please visit the
Commission's fact sheet.
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What are the outcomes of the Commission's statutory review?
The Commission has reviewed and considered Robusto Investments’ application for review and its submissions, the original material before the Commission that remains relevant and reliable and further evidence obtained as part of this review process. In summary, following considering Robusto Investments’ application for review and the information that it advanced, there are five key elements of the preservation regulatory determination that the Commission has reviewed, which Robusto Investments either directly specified be reviewed in its application or can be ascertained from Robusto Investments overall submissions.
The Commission’s decision on review in relation to these five elements is summarised below. The Commission’s detailed statement of reasons for its decision on review.
The Commission confirms the maximum term of the regulatory period of the preservation regulatory determination, being a term of 24 months: from 1 July 2023 to 30 June 2025.
The Commission:
- confirms the maximum revenue allowance in real terms of $359,472 (in real, December 2018 prices) to be recovered from residential customers and Mount Compass Sand and Loam for the period 1 July 2023 to 30 June 2025
- confirms the maximum revenue allowance in nominal terms of $204,034 to be recovered from residential customers and Mount Compass Sand and Loam for the period 1 July 2023 to 30 June 2024, and
- varies the maximum revenue allowance in nominal terms from $210,155 to $210,359 to be recovered from residential customers and Mount Compass Sand and Loam for the period 1 July 2024 to 30 June 2025.
The Commission:
- confirms the pricing structure (the ratio of the supply charge to the usage charge, and the formula relating to price tiers, customer numbers and consumption) to be used in setting maximum nominal prices for residential customers for the period 1 July 2023 to 30 June 2025
- confirms the forecast of water consumption per customer to be used to derive maximum nominal prices for the period 1 July 2023 to 30 June 2025
- confirms the maximum nominal prices to be recovered from residential customers for the period 1 July 2023 to 30 June 2024, as follows:
- Quarterly supply charge of $92.59
- Tier 1 charge of $3.80 per kL
- Tier 2 charge of $5.43 per kL
- Tier 3 charge of $5.88 per kL, and
- confirms that information about customer numbers and connections will be requested from Robusto Investments and assessed in 2024 in order to derive the maximum nominal prices to be recovered from residential customers for the period 1 July 2024 to 30 June 2025.
Should the customer invoice information to be provided by Robusto Investments in 2024 be determined by the Commission to be materially incomplete, the Commission has varied the maximum nominal prices that in this particular circumstance Robusto Investments can charge its residential customers from 1 July 2024 to 30 June 2025, and these will be set as follows:
- Quarterly supply charge of $90.84
- Tier 1 charge of $3.73 per kL
- Tier 2 charge of $5.33 per kL, and
- Tier 3 charge of $5.77 per kL.
The Commission varies the scope of the reporting requirement relating to the provision of customer invoices set out in clause 2.4 of the preservation regulatory determination, as follows (emphasis added to illustrate variation):
2.4.3 Should the information provided by Robusto Investments in respect of the matters specified in clauses 2.4.1 and 2.4.2 be determined by the Commission to be materially incomplete for the purposes of clauses 2.2.3 and 2.2.4, then unless any further information is required and subsequently provided within 20 business days of that request which satisfactorily addresses the matters considered materially incomplete by the Commission, maximum nominal prices that Robusto Investments can charge its residential customers from 1 July 2024 to 30 June 2025 will be…
2.4.4 For the purposes of clause 2.4.3, information will be considered materially incomplete if more than 2 percent of Robusto’s customer invoices for the relevant billing period are not provided to the Commission or are lacking relevant details required to be included in customer invoices.
The Commission confirms that the preservation regulatory determination correctly applies the National Water Initiative Pricing Principles.
In all other respects, the Commission confirms the terms and conditions of the preservation regulatory determination. The Subsequent Determination takes effect on 3 October 2023 until 30 June 2025 (unless it ceases to have effect earlier).
The Commission’s review of the preservation regulatory determination has taken place in the context of ongoing proceedings before the South Australian Civil and Administrative Tribunal in respect to the regulatory determination made by the Commission on 26 August 2021, that applied to Robusto Investments.
Final regulatory determination to apply from 1 July 2023 to 30 June 2025
(made 29 June 2023)
Why is the Commission making this final regulatory preservation determination?
With the regulatory determination applying to Robusto Investments expiring on 30 June 2023, the Commission considered that a regulatory determination applying to Robusto Investments should be in effect until a comprehensive review and subsequent determination can be undertaken by the Commission. This is to protect consumers’ long term interests with respect to the price, quality and reliability of essential water retail services.
Who does this final decision apply to?
The Commission’s final preservation regulatory determination applies to Robusto Investments, as it is the licensed provider of water retail services.
I am a residential customer of Robusto Investments. Does this decision impact me?
Yes, it will. For instance, the Commission’s preservation regulatory determination sets out the maximum prices that can be charged to residential customers who are on a standard contract.
I am a residential customer of Robusto Investments. How do I know if I’m on a standard contract?
Robusto Investments published its standard contract in the State Government Gazette in September 2018. This contract is currently available on the Compass Springs website and applies to all Robusto Investments’ customers, unless:
- the customer receives a non-standard service, or
- prior to the commencement of the standard contract, a customer on an existing written agreement specifically agreed to the continuation of that agreement until its term ends (at which point the standard contract takes effect), or
- following the publication of the standard contract in September 2018, a non-residential customer and Robusto Investments entered into an agreement for the services to be provided on different terms to the standard contract.
The standard contract took effect when it was published in the Government Gazette. This contractual arrangement is also in place for residential customers of other water retailers.
For example, SA Water customers do not sign an individual contract – the provisions of section 36 of the Water Industry Act 2012 permit contractual arrangement between water retailers and customers to be established through the publishing of that contract in the gazette, noting that these contracts have been approved by the Commission.
Residents will need to confirm the specific charges that apply to them by referring to their individual contract. The Commission cannot provide advice to individuals on these matters and recommends that customers seek their own advice if they have any queries about the terms and conditions of any legacy contracts, including pricing matters.
Does this decision set prices for residential customers or does it set the maximum revenues that Robusto Investments can earn?
It sets both. The Commission’s preservation regulatory determination sets out the maximum revenues that Robusto Investments can recover from residential customers and one non-residential customer, and it sets out the maximum prices that can be charged to residential customers.
What are the maximum prices as set out in this decision?
The maximum nominal prices set out in the preservation regulatory determination that Robusto Investments can charge customers for 2023-2024 are:
- a quarterly supply charge of $92.59
- a Tier 1 charge of $3.80 per kL
- a Tier 2 charge of $5.43 per kL
- a Tier 3 charge of $5.88 per kL
For 2024-2025, the regulatory determination sets out a methodology to be updated in 2024 following the collection of customer number information from Robusto Investments.
The final maximum prices for 2024-2025 which will be published May 2024.
Why are these prices higher than the prices set out in last year's regulatory determination?
The increase in prices in the preservation regulatory determination reflect the adoption of new forecasts for CPI inflation, customer numbers and customer consumption. Those forecasts are based on information that was not available previously.
What changed between the draft and final preservation regulatory determination?
The Commission made necessary adjustments to the method and outcome of setting prices for 2024-2025 between the draft and final preservation regulatory determination.
Other differences include discussion and responses to submissions received, and the inclusion of a reporting requirement for Robusto Investments to provide certain information about customer numbers in order to inform the setting of prices for 2024-2025.
How are the 2024-2025 prices going to be set?
The Commission will publish prices for 2024-2025 in May 2024. This will allow the Commission to receive updated information in early 2024 from Robusto Investments relating to customer numbers. The Commission will use the updated information to calculate prices to be set for 2024-2025.
Why is the preservation regulatory determination setting prices and revenues for a period of 24 months?
Why is the preservation regulatory determination setting prices and revenues for a period of 24 months?
A period of 24 months was determined to allow sufficient time for the Commission to obtain relevant information and input from both Robusto Investments and all other stakeholders to inform a subsequent determination, which is currently proposed to will take effect on and from 1 July 2025.
This period of time will allow all stakeholders the opportunity to make submissions and attend public meetings across every stage of the process and for the Commission and Robusto Investments to consider these submissions.
Also, the 24-month regulatory period will allow contingency in relation to information gathering processes; for example, the Commission may need to examine particular matters in some depth, seek updated copies of various information and relevant records and ask questions of stakeholders.
It is noted, however, that the outcome of proceedings currently before the South Australian Civil and Administrative Tribunal may impact upon the term of the preservation regulatory determination (see further information below).
How can I stay informed about the outcome of this or future determination processes relating to Robusto Investments?
Stakeholders can register for news updates via the Commission’s website.
General queries
What consumer protections are in place?
A consumer protection framework established by the Commission applies to the drinking water services provided by Robusto Investments. This includes the Water Retail Code for Minor and Intermediate Retailers (Code). The Code sets out key consumer protection obligations, including requirements for Robusto Investments to have in place the following regulatory documents:
- standard customer contract
- hardship policy
- customer charter, and
- dispute resolution policy.
The regulatory documents, as approved by the Commission, are available on Robusto Investments’ website.
Who do I contact if I think my water supply is not being provided in accordance with the terms and conditions of my standard contract?
If there are concerns that your water supply is not being provided in accordance with the terms and conditions of your standard contract, the first step is to contact Robusto Investments and give it the opportunity to resolve the issue with you. If Robusto Investments is unable to resolve the issue to your satisfaction or within a reasonable time, you may wish to contact the Energy and Water Ombudsman (SA) Limited (EWOSA).
EWOSA can assist with the following matters:
- billing
- payment arrangements and difficulty in paying
- debt collection and credit default listing
- disconnection or restriction of your supply
- water meters, and
- water supplier actions that may affect your land or other property.
Can I connect to SA Water’s network?
SA Water has a connection policy on its website which details the process for applying for a connection to the SA Water network. As detailed in the policy, you many need to pay the costs of extending the water network to meet your connection. Extension fees are based on the estimated cost to deliver the service. It is recommended that you contact SA Water directly to find out more information.
Who should I contact if I have concerns about the local aquifer?
The Commission recommends that any concerns regarding the aquifer should be directed to the relevant authority, which is the Water Licensing Branch, Department for Environment and Water via [email protected].
Why is the price I pay for drinking water different to SA Water’s price?
There are three main reasons why the prices of a minor and intermediate water retailer, such as Robusto Investments, may differ from SA Water’s prices:
- First, under the Commission’s regulatory framework applying to minor and intermediate retailers, the prices charged must be consistent with the efficient costs of producing and supplying drinking water retail services and the requirements of NWI pricing principles.
- Second, each individual water network has its own efficient cost of providing drinking water retail services to customers. This reflects the fact that each network has its own set of circumstances and characteristics. For example, SA Water has more than 700,000 customers and 27,000 kilometres of mains length. By comparison, Robusto Investments’ water supply network has 3 kilometres of mains length and approximately 210 customers.
- Third, SA Water has been directed by the South Australian Government to set its residential water prices based on state-wide pricing (a policy sometimes referred to as ‘postage stamp pricing’). This pricing approach means that, regardless of where a customer lives or the cost of providing the service, all SA Water’s residential customers pay the same price per kilolitre. This requirement does not apply in respect of minor and intermediate retailers (including Robusto Investments).
I am a customer of Robusto Investments. What supply reliability information does Robusto Investments have to provide to me?
The Code, which outlines various consumer protections that currently apply to Robusto Investments, requires that:
- The operator must provide a customer with at least 4 business days’ notice of any planned interruptions to supply at the supply address. Notice given by a retailer can be provided by radio or newspaper where it is not practicable to send a notice in writing due to the number of customers affected.
- The operator must, except as otherwise provided under the Water Industry Act 2012, provide a customer with at least 24 hours’ notice of any entry to the customer’s supply address for the purposes of connecting, disconnecting or restricting the supply of retail services or inspection, repair or testing of a water or sewerage installation.
- The operator must, at the request of a customer, provide an explanation for any unplanned maintenance or interruption to supply of retail services to the customer’s supply address and, if the customer requests that the information be in writing, must provide that information in writing within 10 business days of the request.
What does this mean in practice for customers? Robusto Investments must provide customers with advance notice of both planned interruptions and/or for the entry to properties for the purpose of connecting, disconnecting or maintenance. It must also provide explanations for unplanned interruptions to supply.
Proceedings before South Australian Civil and Administrative Tribunal (Tribunal)
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I have been told there are Tribunal proceedings on foot. What can you tell us about this?
On 8 September 2021, Robusto Investments lodged an application with the Tribunal for a review of the regulatory determination issued by the Commission on 26 August 2021 after its internal review of the regulatory determination made by the Commission in May 2021. The regulatory determination issued on 26 August 2021 has now expired.
Do you know when the Tribunal proceedings will be resolved?
The Commission cannot comment on the timing of the Tribunal proceedings; however, the Commission will need to consider the outcome of those proceedings at the relevant time, which may impact upon the regulatory determination that came into effect on 1 July 2023 and was varied by subsequent determination on 3 October 2023 following the review undertaken by the Commission. When a decision is made by the Tribunal, the Commission will provide customers with further information.
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