ESCOSA content iconDecision 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. 

 

Status

Current status is Final

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

Update 30 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.

The Varied Regulatory Determination issued on 26 August 2021 has now expired. As the matter continues before the Tribunal, the Commission has set a new maximum revenue and prices to remain in effect while the Tribunal proceedings remain on foot. (see below).

Submissions to the draft Further Varied Regulatory Determination and the decision to rollover the Varied Regulatory Determination

The Commission received and considered four submissions to the draft decision published on 1 June 2022. Submissions were received from Robusto investments and its customers. The submissions from customers are published below. 

Final decision in relation to the Final Varied Regulatory Determination

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 suppling 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 

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