The Treasurer of Western Australia has given written notice to the Economic Regulation Authority (ERA) to undertake an annual inquiry and make recommendations on the most appropriate level of tariffs for the Water Corporation’s customers.

The inquiry has been referred to the ERA under section 32(1) of the Economic Regulation Authority Act 2003 (Act), which provides for the Treasurer to refer to the ERA for an inquiry into any matter relating to a regulated industry.

In accordance with the Terms of Reference, the ERA is to annually consider and report on:

• the appropriate tariff levels for the Water Corporation’s residential and non-residential services; and
• the impact of the recommended tariffs on Water Corporation customers and the State Government’s finances.

In developing its recommendations, the ERA is to have regard to the Government’s social, economic and environmental policy objectives and to the following policies:

• the pricing principles of the 1994 Council of Australian Governments water reform agreement;
• the Western Australian State Government’s Uniform Pricing Policy;
• the Western Australian State Government’s Sustainability Policy;
• the Western Australian State Government’s Community Service Obligations Policy; and
• the pricing mechanisms available to the utility service providers through the Water Agencies (Powers) Act 1984 and the Water Boards Act 1904.

The ERA is required to make a draft report available to the Treasurer before close of business on the third Friday in February each year and a final report as soon as practicable thereafter. In accordance with section 36(3) of the Act the Treasurer will then have 28 days to table the final report in Parliament.

The Treasurer amended the reference for the inquiry to require that a final report in respect of the inquiry in 2008 is to be made available before close of business on 24 December 2007, instead of a draft report to be made available on the third Friday in February 2008 with a final report as soon as practicable thereafter.

The final report was tabled in Parliament on 17 January 2008. Following the public release of the final report, an error was identified in the model used to determine tariffs. The error resulted in the publication of some incorrect information in the original report. The affected tables have been corrected and a revised final report has been released. The revised report is available in both clean and marked up versions.

Contacts

Further information regarding this inquiry can be obtained from:

Executive Director, Economics
Ph: +61 8 6557 7900

Media enquiries should be directed to:

Richard Taylor
Riley Mathewson Public Relations
Ph: +61 8 9381 2144
Fax: +61 8 9381 3877