Highlights

These are some of the things that we have accomplished…

…in our operations.

  • The Authority completed the assessment of arrangements (terms and conditions) for third party access to gas infrastructure, including the Dampier to Bunbury Natural Gas Pipeline, AlintaGas' Mid-West and South-West Gas Distribution Systems and the Goldfields Gas Pipeline. Third party access provides for parties such as gas producers, electricity generators and gas retailers to make use of access to gas transmission and distribution infrastructure.
  • The Authority's inquiry functions gained momentum with the delivery to Government of the Final Reports on:
    • – the Urban Water and Wastewater Pricing Inquiry;
    • – the Inquiry on the Cost of Supplying Bulk Potable Water to Kalgoorlie-Boulder; and
    • – the Inquiry on Country Water and Wastewater Pricing.
  • With the introduction of economic regulation in the electricity industry, the Authority's electricity access functions have become an area of great focus and accomplishment. On 21 March 2006 the Authority issued its Draft Decision on Western Power's access arrangement for its network in the South West Interconnected System.
  • Substantial progress was also made with the publication on 11 April 2006 of Draft Technical Rules for the South West Interconnected System. The Technical Rules consist of the standards, procedures and planning criteria governing the construction and operation of the electricity network.
  • The new electricity licensing regime resulted in significant activity for the Authority during 2005-06, which saw 39 licences issued including all those that were required to be issued before the end of the financial year. One licence application was determined not to be required.
  • As part of its customer protection functions, the Authority approved the implementation of the new Western Australian Energy Ombudsman Scheme. The purpose of the Energy Ombudsman is to provide a dispute resolution scheme that promotes fairness, equity and industry accountability through its role of investigating and facilitating the resolution of electricity and gas industry complaints.
  • The Authority has completed a review of the Railways (Access) Code 2000 to assess its suitability to give effect to the national Competition Principles Agreement. The Final Report on the review was published on 23 September 2005.
  • The Authority commenced a review of WestNet Rail's Part 5 Instruments under the Railways (Access) Code 2000, which is anticipated to be completed in early August 2006. The Part 5 Instruments are a series of documents that outline the principles, policies and rules governing the operation of railway lines.
  • A Draft Decision was issued on the assessment of proposed capital expenditure for the stage 5 expansion of the Dampier to Bunbury Natural Gas Pipeline. The decision means that if the proposed capital expenditure is approved by the Authority, this amount would be added to the capital base of the pipeline to the extent that the expenditure is actually incurred in the expansion. This will be relevant in the future determination of prices to apply to gas transported through the pipeline.
  • The Authority has, with the assistance of the Gas Marketing Code Consultative Committee, made significant progress toward the review of the Gas Marketing Code of Conduct 2004. This Code specifies the standards that gas companies must meet when marketing gas to residential and small business customers and has been developed to ensure that customers are protected from unfair practices and behaviour.
  • The Authority assessed and approved a number of instruments proposed by Western Power under the Electricity Industry Customer Transfer Code 2004 and the Electricity Industry Metering Code 2005. These included the approval of Communication Rules applying to the transfer of contestable customers, as well as Communication Rules governing the transfer of information between Western Power and electricity retailers in relation to customer meters.
  • With the start of the Wholesale Electricity Market now scheduled for 21 September 2006, the Authority approved the revised Maximum Reserve Capacity Price ($122,500 per megawatt) on 23 January 2006 as proposed by the Independent Market Operator for the 2008-09 capacity year. The Maximum Reserve Capacity Price is the cap that will be placed on offers for an auction that will be conducted by the Independent Market Operator if forecasts indicate a potential future shortfall in electricity generation capacity.
  • A new licensing and monitoring database was established to administer and monitor licensees in the gas, electricity and water industries.
  • The monitoring of electricity, gas and water licensees' performance has also received considerable attention. The Authority has published a set of manuals and guidelines to help licensees comply with their obligations and completed 20 operational audits and asset management reviews during the year.
  • A Memorandum of Understanding was signed between the Energy Ombudsman and the Authority to share statistical information to help identify systemic or emerging issues and monitor relevant legislative provisions that govern behaviour in the gas and electricity industries.
  • The Authority received major awards for the quality of its 2005 annual report. It received the Alan Skinner Trophy in the WS Lonnie Awards for the best annual report in the general government sector and a Gold Award in the category for agencies with less than 100 employees.
  • A Memorandum of Understanding was also signed on 23 May 2006 between the Department of Consumer and Employment Protection and the Authority to establish an agreed framework for mutual cooperation between the two agencies in relation to the regulation of electricity and gas in Western Australia.
  • In accordance with its mission statement, the Authority has actively participated in advancing the debate in economic regulation by making submissions to national forums on proposed changes to the national gas access regime and the review of electricity transmission revenue and pricing rules.
  • The Authority also provided administrative support to the Western Australian Gas Disputes Arbitrator.

…for our stakeholders.

  • In keeping with its commitment to accountability, the Authority surveyed customers to determine the level of satisfaction with services provided during the reporting year. The survey identified strengths and areas requiring improvement. The outcomes of the survey will be used to streamline the Authority's processes and ensure that its services meet its stakeholders' needs.
  • The Economic Regulation Authority Consumer Consultative Committee (ERACCC) was established in March 2005. The Committee comprises an Authority Member, Mr Chris Field (Chair) and members from community, consumer and stakeholder groups.
  • The Authority commenced redevelopment of its website, which is expected to be completed in the 2006-07 financial year. It will substantially improve transparency in decision-making and help interested parties access information.
  • In January 2006, the first edition of the Authority's newsletter, "e news" was published on its website. The newsletter will be produced quarterly in order to keep stakeholders abreast of regulatory outcomes and decisions, and to promote debate on issues that ultimately affect all West Australians through the prices they pay for regulated services.
  • In May 2006, the Authority participated in the WACOSS State Conference to inform stakeholders of the functions of the Authority and identify matters of relevance to interested parties.

…for our people.

  • In recognition that Secretariat staff is the Authority's most valuable asset, staff were encouraged to undertake both internal and external professional development and training courses. This was done at a cost of $49,000 ($1,600 per staff member).
  • The new corporate structure established during the reporting year, provided staff with greater opportunities for career development.
  • The Authority adopted new approaches in recruitment to attract more applicants with relevant experience and skills.
  • Several occupational health and safety initiatives, such as ergonomic assessments, were implemented.
  • A fitness program was introduced, involving a fitness assessment and the development of individual fitness programs, for staff wishing to participate. The fitness program was arranged through the University of Western Australia's School of Human Movement and Exercise Science.

…in our business processes.

  • During the reporting year, the Authority finalised implementation of a revised corporate structure to enable it to deal with functional commonalities and ensure that resources are allocated efficiently.
  • A review of the Finance and Administration Division was completed. The outcomes of the review will be implemented during the 2006-07 financial year to improve the provision of services to the Authority, other divisions within the Secretariat and external stakeholders.
  • New strategic and business-planning processes were implemented to continue to improve performance.
  • The Authority completed a review of its risk register and risk management strategy.
  • The Authority streamlined its financial reporting capabilities by implementing a new finance management system.
  • The Authority established an Audit and Risk Management Committee to oversee all audit activities and to strengthen the operation of the internal audit function. The Committee aims to enhance transparency, efficiency, risk management and control.