On 21 February 2007 the Treasurer of Western Australia gave written notice to the Economic Regulation Authority 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 Authority under section 32(1) of the Economic Regulation Authority Act 2003 (Act), which provides for the Treasurer to refer to the Authority for an inquiry any matter relating to a regulated industry.
In accordance with the Terms of Reference, the Authority 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 Authority 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 Authority 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 the draft report for 2007 be made available before close of business on 15 March 2007. The draft report was delivered to the Treasurer on 1 March 2007. The final report was tabled in Parliament on 9 May 2007.
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