SA Water regulatory determination 2020
The SA Water Regulatory Determination 2020 (SAW RD20) review process has reached its next stage, with meetings of the Negotiation Forum commencing. Background information on SAWRD20 and its process is set out in the SAWRD20 Framework and Approach.
Audit of SA Water’s performance data
The Commission has completed an independent audit of SA Water’s data relating to specific key performance indicators. The objective of the audit was to provide assurance over the quality of the data reported by SA Water, which will form an input into SA Water Regulatory Determination 2020.
The following performance indicators were audited by Cardno on behalf of the Commission, in respect of the period 2015/16 to 2017/18:
• Number of customers with three or more unplanned water supply interruptions per year - annual. (Metro and Regional )
• Number of unplanned water supply interruptions (Metro and Regional)
• Number of unplanned interruptions sewerage (Metro and Regional)
Based on the audit procedures and detailed testing carried out by Cardno, the Commission is satisfied that the six operational performance indicators that were included in the audit have been reported accurately by SA Water over the three year period and the processes to record and report the data are generally robust.
The Commission will rely on these data to inform SAW RD20.
Negotiations begin on SA Water’s draft business plan
The SAW RD20 Negotiation Forum held its first meetings in February 2019, which will continue through to June 2019.
The Commission has established the Negotiation Forum to ensure that the basis of the draft regulatory business proposal which SA Water submits in October 2019 has been thoroughly scrutinised and tested by a wide range of stakeholders, prior to its consideration by the Commission and the community more generally through an open public consultation process. The Negotiation Forum is comprised of the Customer Negotiation Committee, SA Water Negotiation Team, and an Independent Probity Advisor.
The purpose of the initial meetings is for SA Water to deliver briefings on its upcoming regulatory business proposal. Negotiations will continue through until June 2019.
Consumer priorities report released
The Commission has released the SA Consumer Experts Panel Priorities Report.
The SA Consumer Experts Panel includes members of the Commission’s Consumer Advisory Committee and SA Water’s Customer Advisory Groups.
The Priorities Report describes key issues that the SA Consumer Experts Panel expects SA Water to consider and respond to as it develops its regulatory business proposal. It also provides guidance to the Customer Negotiation Committee on matters it may want to consider in the Negotiation Forum process.
South Australian water regulators continue to work together
The South Australian Water Regulators Working Group is continuing to meet to ensure regulatory coordination and consistency.
The Commission has published the South Australian Water Regulators Working Group Charter which was endorsed in October 2018.
As set out in the Group Charter, members commit to working together to promote the best long-term outcomes for SA Water’s customers and the community.
Members further commit to communicating openly to ensure a shared understanding of the overall regulatory system that applies to SA Water, the impact of regulation on each other’s priorities and the combined effect of regulation on SA Water and its customers.
Negotiations on SA Water’s draft regulatory business proposal form Stage 3 of the SAW RD20 process.
SA Water will then incorporate and respond to outcomes of negotiations as it finalises its proposal, which is to be submitted in October 2019.
That proposal will be open for public consideration, scrutiny and comment. Any comment provided will be a critical input to the Commission’s assessment of SA Water’s proposal.
The Commission will publish a draft decision on the proposal in February 2020 for a further round of public consultation, with a final decision to be made in May 2020.