On 30 January 2008 the Treasurer of Western Australia gave 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 Boards’ 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 make recommendations on the appropriate tariff levels and structures for both Water Boards based on:
- the previous work of the ERA in its 2005 “Inquiry into Urban Water Tariffs”; and
- subsequent information provided by the Water Boards.
The ERA must give consideration to, but will not be limited to, the following matters:
- the current structure and level of water prices;
- the legitimate business interests of the Boards;
- considerations of demand management and long term resource sustainability;
- the impact of the inquiry’s recommendations on customers, on borrowing and capital, and on payments to Government.
In developing its recommendations the ERA is to have regard to the Government’s social, economic and environmental policy objectives and to the pricing principles of the 1994 Council of Australian Governments water reform agreement and the National Water Initiative.
This annual inquiry is not intended to be a major review of tariff structures, which would involve a comprehensive reassessment of the Water Boards’ costs, but is limited to providing advice on the level of tariffs for 2008/09 and the specific matters raised in the Terms of Reference. As such, the ERA consulted with the Water Boards as part of this inquiry, but was not required to undertake a public consultation process.
The ERA delivered the report to the Treasurer on 8 February 2008. The final report was tabled in Parliament on 7 March 2008.
Further information regarding this inquiry can be obtained from:
Executive Director, Economics
+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
