icon-water Decision to make a price determination to apply to Robusto Investments Pty Ltd (trading as Compass Springs)

  • Project Released: 7 Jan 2020
  • Project Closes: Sep 2021
  • Contact: Mark Caputo

Overview

Robusto Investments Pty Ltd (Robusto) proposed to increase its drinking water prices to its approximately 170 customers at Mount Compass. The Commission considered the information provided by Robusto, and determined that there was insufficient evidence to demonstrate that its proposed prices were based on efficient costs. The Commission undertook a transparent and consultative process to make a regulatory determination that will apply to Robusto. 

 

Status

Current status is Final

  • Initiate
  • Draft
  • Submissions
  • Final
  • Further info
  • Final

Further info

Robusto Investments - Application for a review

On 23 June 2021, Robusto lodged an application for a review of the price determination made by the Commission in accordance with section 31 of the Essential Services Commission Act 2002 (Act). The Act allows an entity to which a price determination applies to seek a review of that determination by the Commission by lodging an application within 20 working days of the determination being made. Robusto has lodged such an application.

Final

The Commission has made a regulatory determination for the drinking water retail services provided by Robusto Investments Pty Ltd (Robusto) to its approximately 170 customers at Mount Compass. 

The determination sets out the maximum prices that can be charged to residential customers, and the maximum total revenue that Robusto can recover from residential customers and non-residential customer, Mount Compass Sand and Loam (MCSL).

Revenue cap

The maximum total revenue cap set by the Commission for the regulatory period is $248,395 (in nominal terms). 

Maximum prices and pricing structure

The maximum prices set by the Commission applies to residential customers, and (if prices are set at the maximum) represent a 22 percent increase from current prices. Robusto may choose to adopt prices below the maximum.

The maximum nominal prices that Robusto can charge residential customers are: 

  • a quarterly supply charge of $92.26
  • a Tier 1 (0-30kL) charge of $3.36 per kL, 
  • a Tier 2 (30-130kL) charge of $4.81 per kL and 
  • a Tier 3 (>130kL) charge of $5.20 per kL.

The pricing structure that Robusto must adopt in setting prices for residential customers has been set by the Commission so that the increase in prices is borne equally by residential customers irrespective of water consumption amounts.

Non-residential customers

It is emphasised that, through time, all users need to pay the appropriate amount for supply and usage of the water supply network. This includes contributions to the infrastructure costs of the water supply network.  
Robusto and MCSL can negotiate prices for aspects of MCSL’s business activities, but Robusto must not exceed the maximum revenue cap. As such, Robusto and MCSL can choose whether or not to adopt the residential pricing structure and associated maximum prices for all, some or none of MCSL’s business activities.

Regulatory period

For the purposes of assessing compliance against the determination, the Commission will take into account the period from 1 April 2021 to 30 June 2022.

Stakeholder information and evidence

The Commission thanks all parties for their submissions.

This determination represents the independent review and determinations of the Commission, consistent with the underpinning statutory requirements of the ESC Act and WI Act. 

 

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