In its 2004–05 Annual Report, the Authority committed to the following work:

• Develop public consultation guidelines for licence applications.
• Continue to assess applications for new licences and applications for transfer or amendment of existing licences for the supply of particular water and gas services.
• Assess an estimated 50 electricity generation, transmission, distribution, retail and integrated regional services licence applications expected to be submitted by 31 December 2005. The licences are scheduled to be issued by 1 July 2006.
• Review the format of gas and water licences with a view to standardising any common provisions to facilitate more efficient regulatory oversight of these licences.
• Continue to review and enhance the licensing function in response to changes to the legislative and operating environment for licensed services.

• Public consultation guidelines were established for licensing, standard form contracts and customer service charters.
• No new gas or water licences were granted in the year to 30 June 2006.
• Thirty nine applications for an electricity licence were received during the year and all were completed. This involved granting 15 generation licences, four transmission licences, five distribution licences, 10 retail licences and four integrated regional licences. One licence application was determined to be not required.
• Guidelines for electricity licence applications and standard licence terms and conditions for each classification of electricity licence (namely generation, transmission, distribution, retail and integrated regional) were developed in consultation with Government, industry and consumer representative groups. Licences are now issued under the approved licence terms and conditions. It is intended to establish a single application form and guidelines for all three regulated utility industries.
• A review of gas distribution and trading licences has begun and will be completed in 2006–07.

• Twenty operational audits and 20 asset system management reviews will be reviewed with summary comments to be sent to the relevant Minister.
• The performance monitoring function to be further streamlined by developing a standard audit scope to be used across the water, gas and electricity industries.
• Performance criteria for electricity licensees to be further developed in conjunction with industry and consumer groups.
• A licensing database to be developed to improve the efficiency and effectiveness of the licence monitoring function and to provide improved levels of information to internal management and external stakeholders.

• Twenty operational audits and asset management system effectiveness reviews of local government waste water systems were completed by the Authority and a performance report summarising the audit findings was provided to the Minister for Water Resources.
• A standard audit scope document for the purposes of operational audits and asset management reviews across all regulated industries was developed for comment by key stakeholders and the public.
• Performance reporting manuals were developed for the electricity industry in association with the newly established electricity licensing regime.
• A new licensing and monitoring database was established for administrating and monitoring of licensees.

• To improve the efficiency of regulatory procedures associated with operational audits and asset management reviews, the Authority developed a standard audit scope to apply across the water, electricity and gas industries. This has been strongly supported by industry and is unique in Australia's regulated utility businesses.
• The Authority developed a draft electricity compliance reporting manual for licensees within the electricity industry. The manual identifies all of the compliance requirements that apply to the different types of electricity licences. The manual is based on an exception reporting framework which requires reporting according to the severity of a compliance breach or non–compliance with elements of the relevant legislative instruments. It also provides for regular compliance reporting on, at least, an annual basis.
• A draft set of audit guidelines for conducting performance audits and asset management system effectiveness reviews was released for public comment. The audit guidelines describe minimum requirements for selecting auditors and for scoping, conducting and reporting audits to ensure they are done in a consistent, rigorous and independent manner.
• A water performance information report covering the 2000–05 reporting period was published. The report details and compares water delivery and performance data provided by water service licensees as required under their licence terms and conditions.
• A database recording licensee details, licence compliance information and licensee performance information was established. The ability to electronically manage the monitoring, compliance and customer protection matters associated with the terms and conditions of licences is essential to the efficient regulation of the water, electricity and gas industries.

• Expansion of the existing Gas Industry Ombudsman Scheme to include complaints against electricity service providers. The new scheme will be known as the Energy Ombudsman Scheme.
• Continue to review customer charters.
• Undertake a review of the Code of Conduct for the Supply of Electricity to Small Use Customers.
• Ensure operational audits focus on reviewing industry compliance with customer charters and codes.
• Review standard form contracts in conjunction with electricity and gas retail licence applications.

• The Authority approved the implementation of the new Energy Ombudsman Scheme on 22 September 2005.
• Eight customer charters were received and approved.
• The Authority progressed the establishment of the Electricity Code Consultative Committee with the review of the Code to be undertaken in 2006–07.
• Operational audits completed during the year revealed high levels of compliance with customer charters and codes.
• Standard form contracts for three electricity retail and integrated regional licensees were approved following consultation with industry and consumer groups.

• The Authority approved standard form contracts for three electricity retail and integrated regional licensees in the operating areas of the South West Interconnected System and regional Western Australia. The standard form contracts were developed in consultation with industry and consumer representative groups.
• Two customer charters for providing water services were received and subsequently approved by the Authority. Given that no standard form contracts or regulated code of conduct apply to the water industry, the approval of customer charters is an important regulatory role performed by the Authority to ensure water service standards for customers are set and complied with.
• Twenty operational audits were received and reviewed during the year.
• The Authority developed draft public consultation guidelines for electricity, gas and water licences, standard form contracts and customer service charters.
• The Authority contributed to the development of a variety of codes relating to customer service standards in the electricity industry.
• The Authority approved the amendments to the Gas Industry Ombudsman Scheme to provide for the Energy Ombudsman Scheme to be established within Western Australia. This scheme has jurisdiction over both gas and electricity licensees and provides an important means of complaint investigation and resolution should a dispute arise between a customer and an industry service provider.
• A Memorandum of Understanding was signed between the Energy Ombudsman and the Authority in September 2005 to share statistical information to help identify systemic or emerging industry issues and to monitor the relevance of legislative codes that govern industry.