Decision to make a price determination to apply to Robusto Investments Pty Ltd
19 Nov 2020
The Commission has released its draft regulatory determination in relation to the drinking water retail services provided by Robusto Investments Pty Ltd (Robusto).
The draft determination proposes that, in setting prices, Robusto must adopt, comply with and not exceed a maximum revenue cap of $283,337 (in December 2018 prices, equivalent to an estimated $287,976 at current prices) for the proposed regulatory period 1 April 2021 to 30 September 2022.
If Robusto chose to set prices to reach the revenue cap the average customer bill would rise from approximately $900 to approximately $1,086 per year (in December 2018 prices, equivalent to $1,103 at current prices). This increase of approximately 21 percent is primarily driven by the need to include the recovery of efficient asset costs within the cost base, which is not occurring within the current pricing structure.
The proposed revenue cap has been determined based on the best available evidence at this stage of the process. However, the revenue cap for the final regulatory determination may end up being higher, lower or the same as the revenue cap proposed in the draft determination, depending on any new information and evidence.
The Commission invites public submissions on this draft regulatory determination by close of business, Friday 15 January 2021, with the final determination currently planned for March 2021.