SA Water regulatory determinations

Water

 

The Commission makes a regulatory determination in relation to SA Water every four years, in accordance with the economic regulatory framework under the Water Industry Act 2012. The determination sets a revenue cap on SA Water's expenditure for the four-year period.

In setting the revenue cap, the Commission analyses and forms a view on the overall prudent and efficient expenditure SA Water requires to deliver drinking water and sewerage services to consumers. This approach ensures that the revenue cap is set based on the lowest sustainable cost for SA Water to efficiently deliver essential consumer services, including meeting its legal and regulatory responsibilities, and ensuring its infrastructure is sustainably managed for the long term.

As part of making the determination, the Commission does not "approve" particular programs or projects – it determines an overall revenue cap. While SA Water must keep its expenditure for the four year period within the cap, it may undertake whatever projects it considers necessary to meet its regulatory and customer responsibilities: it is not bound to undertake the specific projects proposed as part of its Regulatory Business Plan. Any expenditures above the revenue cap may not be recovered from customers – SA Water must find other sources of funding.

The Commission has made three regulatory determinations to apply to SA Water under the Essential Services Commission Act 2002 and the Water Industry Act 2012.

The Commission will make a fourth regulatory determination for SA Water in May 2024, to apply for the period from 1 July 2024 to 30 June 2028.