Draft Report and Draft Price Determination
On 30 November 2017, the Regulator released a Draft Report (7Mb) including Draft Price Determination for the three-year regulatory period from 1 July 2018 to 30 June 2021.
The Regulator also issued a media release in relation to its Draft Report and Draft Price Determination and published a Notice inviting interested parties to make submissions to the Regulator in relation to the Draft Price Determination.
Copies of the individual components of the Draft Report together with the Draft Price Determination are available here:
Acronyms and glossary (423Kb)
Executive summary (634Kb)
Summary of Regulators Decisions (457Kb)
Overview of impact on TasWaters maximum allowed regulated revenue (487Kb)
Chapter 1 - Introduction (500Kb)
Chapter 2 - Customer and stakeholder consultation (468Kb)
Chapter 3 - Regulatory compliance improvement (727Kb)
Chapter 4 - Customer service standards, contract and policies (743Kb)
Chapter 5 - Demand forecasts (517Kb)
Chapter 6 - Capital expenditure (801Kb)
Chapter 7 - Operating expenditure (907Kb)
Chapter 8 - Regulatory depreciation (655Kb)
Chapter 9 - Weighted average cost of capital (631Kb)
Chapter 10 - Return on capital (468Kb)
Chapter 11 - Revenue requirement (579Kb)
Chapter 12 - Pricing structure (730Kb)
Chapter 13 - Prices and customer impacts (714Kb)
Appendix 1 - Draft Price Determination (684Kb)
Appendix 2 - Customer contract (813Kb)
Appendix 3 - Trade waste policy (428Kb)
Appendix 4 - Land development policies (617Kb)
Appendix 5 - Water and sewerage network and charges policy (722Kb)
Appendix 6 - Diagram of Taswaters asset management system elements (365Kb)
Appendix 7 - List of TasWaters capex projects for the second regulatory period (361Kb)
Appendix 8 - List of Taswaters capex projects for the third regulatory period (349Kb)
Appendix 9 - Comparison of equivalent tenement rates for the second and third regulatory periods (526Kb)
Appendix 10 - Departures from the NSW Water Directorates Equivalent Tenement Guideline (418Kb)
The Draft Report and Draft Price Determination were based on the Regulator's preliminary assessment of TasWater's proposed Price and Service Plan for the third regulatory period.
Central to the Regulator's approach was to ensure that TasWater's annual maximum allowed regulated revenues were based on efficient costs. To assist in this task, the Regulator engaged a third party consultant, Arup Group (Arup), to undertake an independent review of TasWater's proposed operating and maintenance expenditure and capital expenditure. Arup’s Draft Report was submitted to the Regulator in October 2017.
Submissions on the Draft Report and Draft Price Determination closed on 25 January 2018. The Regulator received the following submissions in response to the Draft Report and Draft Price Determination:
Department of Health & Human Services Submission PSP3 (84Kb)
EPA Submission PSP3 (792Kb)
TasCOSS Submission PSP3 (880Kb)
TasWater Submission PSP3 (1Mb)
TasWater Supplementary Submission PSP3 (838Kb)
Bob Harder Submission PSP3 (127Kb)
Malcolm Eastley Submission PSP3 (424Kb)
Kevin Close Submission PSP3 (134Kb)
R B Manson Submission PSP3 (702Kb)
Emily Devine Submission PSP3 (369Kb)
Nekon Pty Ltd Revised Submission PSP3 (1Mb)
John Marrone Submission PSP3 (109Kb)
Graeme Wathen Submission PSP3 (409Kb)
Catherine Reynolds Submission PSP3 (104Kb)
To support stakeholder participation in public consultation, the Regulator also developed a series of fact sheets on topics that have arisen during the course of the investigation. The fact sheets are available here:
Fact Sheet - Proposed prices PSP3 (242Kb)
Fact Sheet - Uniform pricing PSP3 (245Kb)
Fact sheet - Service charges on unconnected properties PSP3 (369Kb)
Fact sheet - Trade waste and equivalent tenements PSP3 (396Kb)
Fact sheet - Price determination process PSP3 (242Kb)
Fact sheet - Fixed variable charge split PSP3 (233Kb)
On 17 November 2017, the Regulator received a submission from Nekon Pty Ltd (Nekon) relating to TasWater’s approach to trade waste management and pricing. Due to the timing of the receipt of Nekon’s submission, the Regulator was unable to consider the issues that Nekon had raised prior to releasing its Draft Report. The Regulator will take into account Nekon’s submission, along with any other submissions made during the public consultation period, when preparing its Final Report. Nekon’s submission is available here:
Nekon Pty Ltd Submission PSP3 (1Mb)
Proposed Price and Service Plan
As required under the Price and Service Plan Guideline TasWater submitted its proposed Price and Service Plan on 30 June 2017.
A copy of the proposed plan is available here:
TasWater proposed Price and Service Plan for the third regulatory period (1 July 2018 to 30 June 2021) (7Mb)
Notice of intention to conduct a water and sewerage price determination investigation and make a price determination
On 1 July 2017 the Regulator notified stakeholders that it intended to conduct a water and sewerage price determination investigation and make a price determination.
On 16 June 2016, the Regulator notified TasWater of the requirement to submit, by no later than 30 June 2017, its proposed Price and Service Plan for the third regulatory period.
Duration of the third regulatory period
On 22 June 2016, the Regulator declared that the duration of the third regulatory period would be three years from 1 July2018 to 30 June 2021. Declaration of duration of third regulatory period.