On 10 January 2012, the State Treasurer asked the Economic Regulation Authority (ERA) to undertake an inquiry into the efficient costs and tariffs of the Water Corporation, Aqwest and the Busselton Water Board for the three year period to 2015-16.

The inquiry has been referred to the ERA under section 32(1) of the Economic Regulation ERA Act 2003, which provides for the Treasurer to refer to the ERA inquiries on matters relating to regulated industries.

In accordance with the Terms of Reference, the ERA is required to investigate and report on the efficient costs and appropriate charges for the services provided by the Water Corporation, Aqwest and the Busselton Water Board. The ERA is required to consider, but not limit its investigation to, recommended tariff levels and charging structures for water, wastewater and drainage services.

The ERA is also required to make recommendations on the most appropriate level and structure of water storage charges to the South West Irrigation Management Co-operative (Harvey Water).

The ERA has published an issues paper to help interested parties understand the matters under review and to facilitate submissions. Details on how to make a submission are available in the issues paper and on the ERA website.

After considering the responses to the issues paper, the ERA will publish a draft report for further public consultation.

The final report for the inquiry is due to be delivered to the State Government by 2 November 2012, after which the Government will have 28 days to table the report in Parliament.