On 5 October 2006, the State Government of Western Australia gave written notice to the Economic Regulation Authority (Authority) to conduct an inquiry, with direct input from the public, into the Water Corporation's water storage charges to the South West Irrigation Cooperative (Harvey Water).
The inquiry is the first independent evaluation of water charges to irrigators in Western Australia.
In accordance with the Terms of Reference, the Authority will make recommendations on the level and structure of water storage charges to Harvey Water, which will require consideration of:
- the cost of operating and maintaining the irrigation dams;
- the additional costs associated with maintaining and improving dam safety for the Water Corporation's South West irrigation dams;
- the beneficiaries of the South West irrigation dams;
- the ability of South West irrigation farmers and Harvey Water to meet their share of the costs of dam safety improvements and the impact on farmers of an increase in prices (if any); and
- the impact on State Government's net financial position associated with the recommended price level and structure.
The Authority published an issues paper on 13 October 2006 to assist stakeholders to understand the nature of the issues under review and to facilitate public comment and debate. Six submissions to the issues paper were received by the Authority and can be viewed here.
Following consideration of the responses made to the issues paper, the Authority published a draft report on 14 December 2006. Submissions in response to the draft report can be viewed here.
The final report for the inquiry was delivered to the State Government on 12 April 2007 and the State Government tabled the report in Parliament on 9 May 2007.
A revised final report was delivered to the State Government on 22 June 2007. The revised final report incorporates a number of changes to the financial model used by the Authority for the final report. The changes arise as a result of due diligence carried out by Harvey Water and the Water Corporation in preparation for the signing of a new Bulk Water Supply Agreement. The revisions do not alter the conclusions of the final report, although they do increase the charges to Harvey Water.
Contacts
