2024 Review of the water third party access regime
- Project Released: 7 Aug 2023
- Project Closes: June 2024
- Contact: Mark Caputo
Overview
On 1 July 2016, a regime was established that provides a framework for third parties to negotiate access to specified water and sewerage infrastructure services provided by SA Water, with the potential for arbitration should negotiations fail. The Commission is the regulator of that access regime.
Under the Water Industry Act 2012, the Commission must conduct a review of the water infrastructure and sewerage infrastructure subject to the regime and form a view as to whether or not the access regime should continue from 30 June 2024 for a period of five years.
The Commission’s final report setting out the review’s conclusions and recommendations must be provided to the Minister for Environment and Water. The decision to continue operation of the access regime rests with the Minister.
Status
Current status is Final
- Initiate
- Submissions
- Draft
- Submissions
- Final
Final
The Commission conducted a review of the third party access regime that applies to declared water and sewerage infrastructure, which is subject to Part 9A of the Water Industry Act 2012 (Act).
In May 2024, the Commission’s final report and conclusions were provided to the Minister for Housing Infrastructure. The report and conclusions were subsequently provided to the Minister for Climate, Environment and Water.
The Commission’s final report recommended that the access regime should remain in effect and be extended by regulation for a further five-year period.
Indicators appear to suggest that the access regime has supported the statutory objectives of the Act. This includes promoting economically efficient use and operation of and investment in declared infrastructure so as to promote competition in upstream markets, and promoting efficiency, competition and innovation in the water industry.
While there is uncertainty about the exact magnitude of the benefits of the access regime, the expected benefits exceed the costs. Stakeholders have either supported the continuation of the access regime or noted the imbalance in bargaining power between those seeking access and SA Water.
In accordance with the Act, and following the recommendation of the Commission, the operation of the access regime was extended by regulation by the South Australian Government for five years from 1 July 2024.