SA Water regulatory determination 2020
SA Water Regulatory Determination 2020 (SAW RD20) will set maximum revenues and minimum service standards for SA Water’s drinking water and sewerage services, as well as setting pricing requirements for other miscellaneous retail services, to apply from 1 July 2020 to 30 June 2024.
SAW RD20 will challenge SA Water to:
- provide water and sewerage services at the lowest sustainable price for the quality and reliability levels valued by customers, and
- have in place sound long-term asset management, operating and financing strategies, which support the provision of those services for customers of today and tomorrow.
Those intended outcomes are consistent with the Commission’s primary objective of protecting the long-term interests of consumers with respect to the price, quality and reliability of essential services.
The Commission released its Framework and Approach paper in July 2018 to set out the governance and stakeholder engagement process that is designed to obtain the best available evidence to inform SAW RD20.
The SAW RD20 review process will raise issues for consideration earlier and introduce a greater level of direct customer challenge and negotiation into the preparation of SA Water’s draft business plan.
On 28 October 2018, the Treasurer issued a pricing order, under section 35 of the Water Industry Act 2012, to apply for the regulatory period 1 July 2020 to 30 June 2024. Further information on pricing orders is available on the Department of Treasury and Finance website at https://www.treasury.sa.gov.au/economy,-taxes-and-rebates/economic-regulation/water-and-sewerage-prices.
While the Commission remains responsible for making the final regulatory determination, which will require SA Water to provide the water and sewerage retail services valued by customers for the lowest sustainable cost, the review process will involve multiple opportunities for stakeholders to be involved prior to that final determination. Input from a diverse range of stakeholders is important, as it helps the Commission to make better informed and more inclusive decisions. The Commission will therefore draw on the full range of evidence provided by all stakeholders in making the final determination.
The main stages in SAW RD20 are provided below.