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Regulatory Reform

Latest News:

The Premier has announced a seven point action plan for water and sewerage billing in response to community concern over the new system.

Click here to view the full media releases.

The Treasurer has released the report Meter Rollout Options for Moving to Two-Part Pricing in Tasmania for consultation.

The report discusses how best to transition to two-part water pricing in Tasmania and provides a cost-benefit analysis on water metering options.

Responses will be accepted up to 29 January 2010.

A Fact Sheet on water metering options has also been released.

The Water and Sewerage Industry (Customer Service Standards) Regulations 2009 commenced on 2 December 2009.

The Department of Primary Industries, Parks, Water and Environment are responsible for administering the Regulations. Their website can be found here.

The Department of Treasury and Finance has released a summary of the issues that were raised during the consultation period on the draft Water and Sewerage Industry (Community Service Obligation) Bill 2009 and the draft Water and Sewerage Industry (Community Service Obligation) Regulations 2009.

The Water and Sewerage Industry (Community Service Obligation) Act 2009 commenced on 4 September 2009.

The three Regional Corporations have launched their websites.

www.southernwatertas.com.au (Southern Water)
www.benlomondwater.com.au (Ben Lomond Water)
www.cmwater.com.au (Cradle Mountain Water)

Overview

On 26 September 2006, the Premier announced the creation of a Ministerial Water and Sewerage Taskforce (the Taskforce). The Taskforce is comprised of the Treasurer (Chair), the Minister for Primary Industries and Water and the Minister for Tourism, Arts and the Environment. (Click here for the 2006 State of the State Address.)

The primary objective of the Taskforce is to identify ways of achieving major long-term improvements in Tasmania’s water and sewerage services and infrastructure, through a collaborative approach with local Government.

After consultation with the community and local Government, a number of significant outcomes have been achieved.

In June 2009, the Interim Price Order was released. The Interim Price Order starts to transition the water and sewerage industry towards full cost recovery and consistent pricing arrangements by the first regulatory period on 1 July 2012. The Order also aims to transition prices such that large price shocks to consumers are avoided.
On 1 July 2009, the three regional water and sewerage corporations, Ben Lomond Water, Cradle Mountain Water and Southern Water, which are supported by the common services corporation Onstream, assumed responsibility for the provision of water and sewerage services.
On 4 September 2009, the Water and Sewerage Industry (Community Service Obligation) Act 2009 commenced. The Act establishes arrangements under which the State Government will fund the full cost of the water and sewerage concession. The total cost of the water and sewerage concession is estimated to be $6.5 million for 2009-10.
The customer service standards framework has been developed to protect customers from the risk of misuse of monopoly power which arses owing to a lack of effective competition in the provision of water and sewerage services.
In November 2009 a seven point action plan for water and sewerage billing was announced by the Premier in response to community concern over some elements of the new system.

The State Government continues to progress the remaining elements of the regulatory framework. This includes the development of pricing regulations, including two-part pricing for water and the principles around developer and headworks charges. The Regulator will also be continuing the development of a number of codes and guidelines to supplement regulation of the sector. Theses include the Customer Service Code, Performance Reporting Guidelines, Pricing and Service Guidelines, and the Regulator's Conduct Guidelines.