Decision to make a price determination to apply to Robusto Investments Pty Ltd (trading as Compass Springs)
- Project Released: 7 Jan 2020
- Project Closes: Mar 2021
- Contact: Mark Caputo
Robusto Investments Pty Ltd (Robusto) is proposing to increase its drinking water prices to apply to approximately 170 customers at Mount Compass, approximately 50km south of Adelaide.
The Commission has determined that, based on information provided by Robusto to date, there is insufficient evidence to demonstrate that its proposed prices are based on efficient costs. The Commission will therefore commence a transparent and consultative process to make a price determination that will apply separately to Robusto, as distinct from the existing price determination that applies to minor and intermediate water retailers.
Current status is Draft
The Commission has released its draft regulatory determination in relation to the drinking water retail services provided by Robusto Investments Pty Ltd (Robusto).
The draft determination proposes that, in setting prices, Robusto must adopt, comply with and not exceed a maximum revenue cap of $283 337 (in December 2018 prices) for the proposed regulatory period 1 April 2021 to 30 September 2022.
If Robusto chose to set prices to reach the revenue cap, the average customer bill would rise from approximately $900 to approximately $1 086 per year (in December 2018 prices).
The proposed revenue cap has been determined based on the best available evidence at this stage of the process. However, the revenue cap for the final regulatory determination may end up being higher, lower or the same as the revenue cap proposed in the draft determination, depending on any new information and evidence.
The Commission has extended the period for public submissions on this draft regulatory determination to close of business, Friday 22 January 2021, with the final determination currently planned for March 2021.