SA Water regulatory determination 2024: guidance paper 1 - the regulatory business plan
08 Dec 2021
The Commission has released the first Guidance Paper for the SA Water Regulatory Determination 2024, setting out its expectations for the matters to be addressed in SA Water’s Regulatory Business Plan.
A key element of the regulatory determination process is the development of a Regulatory Business Plan by SA Water, which details its proposed expenditures and service outcomes for the four-year regulatory period. The Regulatory Business Plan must contain sufficient evidence for the Commission and stakeholders to understand and engage with SA Water’s proposals.
The Commission expects SA Water’s Regulatory Business Plan to address the following matters:
- SA Water should demonstrate how its proposed expenditures relate to either delivery of core services to the required standards, or to improvement, growth, renewal, or enhancement of core services.
- The Regulatory Business Plan must be a subset of SA Water’s long-term strategies and asset management plans. Clear explanation of how proposed expenditures for the regulatory period relate to long-term plans and strategies is required in the Regulatory Business Plan.
- Expenditure proposed must identify clear drivers, or reasons why the expenditure is needed, and the planned outputs as well as the expected outcomes to be achieved for customers.
- SA Water needs to provide clear evidence of how its expenditure proposals have been thoroughly tested with stakeholders, including the Customer Challenge Group, and that customer research and input has informed the development of these proposals.
Feedback from stakeholders on any of these matters is welcome at any time.