Decision to make a price determination to apply to Robusto Investments Pty Ltd (trading as Compass Springs)
- Project Released: 7 Jan 2020
- Project Closes: Jun 2023
- 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.
Update: On 29 June 2023, the Commission made a new preservation regulatory determination to apply for the period 1 July 2024 to 30 June 2025 (inclusive). Please refer to the project page for further information.
Status
Current status is Final
Final decision in relation to the Final Varied Regulatory Determination applying 1 July 2022 to 30 June 2023.
The Varied Regulatory Determination expired as of 30 June 2022. In order to protect the long-term interests of consumers while proceedings before the South Australian Civil and Administrative Tribunal continue, the Commission’s final decision is that the Varied Regulatory Determination that applies to Robusto Investments be further varied to extend its application for the 12-month period 1 July 2022 to 30 June 2023, adjust for inflation and increased customer numbers. This will, effectively, maintain the status quo for Robusto Investments and its customers while the Tribunal process remains on foot.
The final further Varied Regulatory Determination sets out the maximum total revenue that can be recovered by Robusto Investments during the extended 12-month period for the sale and supply of drinking water to residential customers and one non-residential customer over that period (of $196,944 in nominal terms and of $179,736 in real December 2018 prices). From this nominal maximum revenue, the maximum prices that can be charged to residential customers are as follows (see table below).
The maximum prices for residential customers set by the Commission represent around a 2 percent decrease from current prices, as the rise in the maximum revenue due to inflation is more than offset by the additional customers that Robusto Investments has started supplying since the Varied Regulatory Determination was made.
Final decision - Maximum prices
| Tariff element |
Varied Regulatory Determination
(1 April 2021 to 30 June 2022)
|
Further Varied Regulatory Determination
(1 July 2022 to 30 June 2023)
|
| Quarterly supply charge |
$86.74 |
$84.59 |
| Tier 1 charge per kL (0-30kL) |
$3.16 |
$3.09 |
| Tier 2 charge per kL (30-130kL) |
$4.52 |
$4.41 |
| Tier 3 charge per kL (>130kL) |
$4.89 |
$4.77 |
Background
Since 2021, the Commission has put in place separate regulatory determinations applying to Robusto Investments, which set the maximum revenues that could be recovered from residential customers and one non-residential customer and the maximum prices that could be charged to residential customers.
A summary of those determinations, and subsequent reviews, are as follows:
- On 25 May 2021, the Commission made a regulatory determination to apply for the period 1 April 2021 to 30 June 2022 (inclusive). In response to this determination, Robusto Investment submitted an internal review application under the Essential Services Commission Act 2002.
- On 26 August 2021, following the internal review, the Commission made a regulatory determination to apply for the period 1 April 2021 to 30 June 2022 (inclusive). This determination confirmed the 25 May 2021 decision and made a variation to adjust for operating expenses.
- On 8 September 2021, under Section 32 of the Essential Services Commission Act 2002, Robusto Investments lodged an application with the South Australian Civil and Administrative Tribunal (Tribunal) for an external review of the Commission’s regulatory determination made on 26 August 2021. That external review remains before the Tribunal.
- On 24 June 2022, the Commission made a new regulatory determination to apply for the period 1 July 2022 to 30 June 2023 (inclusive). Refer above, and to the publications below, for further information.
- On 29 June 2023, the Commission made a new preservation regulatory determination to apply for the period 1 July 2023 to 30 June 2025 (inclusive). Please refer to the project page for further information.