On 30 January 2008 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 Boards’ 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 into any matter relating to a regulated industry.

In accordance with the Terms of Reference, the Authority is to make recommendations on the appropriate tariff levels and structures for both Water Boards based on:

• the previous work of the Authority in its 2005 “Inquiry into Urban Water Tariffs”; and 
• subsequent information provided by the Water Boards.

The Authority must give consideration to, but will not be limited to, the following matters:

• the current structure and level of water prices;
• the legitimate business interests of the Boards;
• considerations of demand management and long term resource sustainability;
• the impact of the inquiry’s recommendations on customers, on borrowing and capital, and on payments to Government.

In developing its recommendations the Authority is to have regard to the Government’s social, economic and environmental policy objectives and to the pricing principles of the 1994 Council of Australian Governments water reform agreement and the National Water Initiative.

This annual inquiry is not intended to be a major review of tariff structures, which would involve a comprehensive reassessment of the Water Boards’ costs, but is limited to providing advice on the level of tariffs for 2008/09 and the specific matters raised in the Terms of Reference. As such, the Authority consulted with the Water Boards as part of this inquiry, but was not required to undertake a public consultation process.

The Authority delivered the report to the Treasurer on 8 February 2008. The final report was tabled in Parliament on 7 March 2008.

Contacts

Further information regarding this inquiry can be obtained from:

Mr Greg Watkinson
Director References and Research
Economic Regulation Authority
Ph: (08) 9213 1900

Media enquiries should be directed to:

Mr Paul Byrne
Byrne & Byrne Corporate Communications
Ph: (08) 9336 2081
Mob: 0417 922 452