Preservation Regulatory Determination – Robusto Investments Pty Ltd (trading as Compass Springs)

Status

Current status is Initiate

Application for a review

On 26 July 2023, Robusto Investments lodged an application for a review of the preservation regulatory determination made by the Commission pursuant to 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 Investments has lodged such an application, which is available to view below.

In that application Robusto Investments has stated that it:

‘…  seeks the following alternative outcomes based upon the period of the Determination. 

5. Robusto says that the Determination should be for no more than 12 months. On this basis it seeks a variation of the Determination to increase the Maximum Revenue control figure for the financial year 2023/24 from $204,034 (2.1.2 in the Determination) to $739,012. 
 
6. In the alternative if the Determination is for 24 months, it seeks a variation of the Determination to increase the Maximum Revenue control figure for the two financial years 2023/24 and 2024/25 from $414,189 (2.1.1 in the Determination) to $1,500,194 which comprises:- 

6.1    2023/24 - $739,012. 

6.2    2024/25 - $761,182.’ 

Next steps

The process initiated by Robusto Investments under section 31 of the Act is different to the other consultative processes undertaken by the Commission when making regulatory decisions. In this circumstance, the Act only permits submissions to be made by the entity to which the price determination applies (ie Robusto Investments) and the Minister responsible for the administration of the Act (the Treasurer) should they wish to do so. Accordingly, the Commission cannot seek public submissions on this application for a review.

In accordance with the requirements of section 31 of the Act, the Commission must: 

• Within 10 weeks of the application being lodged, consider the application and determine whether to confirm, vary or substitute the price determination or any specific pricing decisions within it. This process has commenced. 
• Upon the conclusion of the review, give Robusto Investments written notice of the Commission's decision, and the reasons for the decision. 

If the Commission decides to vary or substitute the price determination, the Commission must do so by making a further determination in accordance with Part 3 of the Act, noting that a further determination cannot be the subject of another application for a review by the Commission. The Commission will advise all stakeholders of the outcome of the review upon its completion.

To view the application for a review and related fact sheet, please refer to the publications below.

Further information

Have further questions? Please refer to the sections below for further information on the preservation regulatory determination, previous regulatory determinations and frequently asked questions. 

Preservation regulatory determination applying 1 July 2023 to 30 June 2025

The Commission has made a preservation regulatory determination to apply to Robusto Investments for the 24-month regulatory period 1 July 2023 to 30 June 2025. The preservation determination carries forward the substantive terms of the current regulatory determination (such as the determination of efficient and prudent costs and the maximum revenue in inflation-adjusted terms that can be recovered by Robusto Investments). It limits variations to only those price-setting-based parameters where the Commission has determined there is new, relevant and verifiable information which justifies adjustments being made (for example, customer numbers and inflation).

The 24-month term of operation allows for and promotes, engagement, consultation and stakeholder input into a comprehensive review to inform a subsequent determination to apply to Robusto Investments. The term of operation will allow the Commission to assess Robusto Investments latest expenditure proposal. This includes allowing for information gathering and analysis relating to, among other things, capital expenditure, asset values, demand and customer consumption, and operating expenditure.

The maximum revenue that Robusto Investments can recover over the 24-month regulatory period from residential customers and one non-residential customer is set at $414,189 (in nominal terms) and $359,472 (in real, December 2018 prices).

The Commission also prescribes the methodology behind setting the maximum prices that Robusto Investments may charge its residential customers. The maximum prices for 2023-2024 are set out in the table below. The maximum prices for 2024-2025 will be published by the Commission in May 2024, following the collection of further information from Robusto Investments in early 2024.

Final decision - Maximum prices

In reaching its final decision, the Commission has taken into account the information and views contained in submissions. Submissions were received from Robusto Investments and a number of stakeholders.

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Background

• 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).
• Please refer to the project page for further information on previous determinations.
• 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). Refer above, and to the publications below, for further information. 

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Frequently asked questions

The following frequently asked questions provide information relating to the water retail services provided by Robusto Investments (trading as Compass Springs) at Mount Compass. This includes information on:

• the final preservation regulatory determination to apply from 1 July 2023 to 30 June 2025
• general queries relating to consumer protections, service and price, and 
• proceedings before the South Australian Civil and Administrative Tribunal.

Robusto Investments price determination - frequently asked questions

Submissions

Public submissions to the preservation regulatory determination are available below. Six submissions were considered as part of the review and discussed in the Commission’s statement of reasons, published 29 June 2023. 

Three additional submissions were identified, following finalisation of the preservation regulatory determination. The Commission has reviewed the additional submissions and confirms that the information and views presented are in line with the information and views already presented in the customer submissions that have been reported on, and addressed in, the Commission’s statement of reasons.

The additional public submission is available to view below under publications. 

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