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: Dec 2022
  • 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 Draft

  • Initiate
  • Draft
  • Submissions
  • Final
  • Further info
  • Subsq final
  • Further info
  • Further draft
  • Final

Update 1 June 2022

Appeal to the South Australian Civil and Administrative Tribunal

On 8 September 2021, Robusto Investments Pty Ltd lodged an application with the South Australian Civil and Administrative Tribunal (Tribunal) for a review of the Varied Regulatory Determination, issued by the Commission on 26 August 2021 after its internal review of the original Regulatory Determination, made in May 2021.

This matter continues before the Tribunal in accordance with the South Australian Civil and Administrative Tribunal Act 2013.

At this time, the maximum revenue and maximum prices set by the Commission under the Varied Regulatory Determination it issued on 26 August 2021 remain in effect. However, the Varied Regulatory Determination is due to expire on 30 June 2022 (see below).

Draft further variation decision to rollover the varied Regulatory Determination

The Varied Regulatory Determination is due to expire on 30 June 2022. In order to protect the long-term interests of consumers, the Commission’s draft 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. This will, effectively, maintain the status quo for Robusto Investments and its customers while the Tribunal process remains on foot. 

The draft further varied regulatory determination sets out the maximum prices that can be charged to residential customers over the 12-month period (see table below), and the maximum total revenue that be recovered by Robusto Investments for the sale and supply of drinking water to residential customers and one commercial customer over that period (of $196,944 in nominal terms and of $179,736 in real December 2018 prices). 

The maximum prices 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 suppling since the Varied Regulatory Determination was made.

Submissions from all stakeholders will be sought on the draft decision until 15 June 2022. Stakeholder evidence will be carefully considered by the Commission in reaching a final decision.

 
Draft 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 

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