Department of Treasury and Finance

Economic regulation

SA Water Regulatory Rate of Return 2016 – 2020 - Final Report to the Treasurer

On 2 September 2014, a Pricing Order was made pursuant to the provisions of the Water Industry Act 2012. The Pricing Order sets out certain procedural requirements for the purposes of the upcoming price determination for SA Water, to take effect from 1 July 2016 (SA Water PD 2016). One of those requirements is that the Essential Service Commission of South Australia (ESCOSA) is to provide a report to the Treasurer on the proposed approach to calculating a regulatory rate of return to apply to SA Water's regulated assets in SA Water PD 2016.

Following a period of public consultation on a draft report, ESCOSA has provided to the Treasurer the Final Report setting out ESCOSA's proposed approach.

Inquiry into Drinking Water and Sewerage Retail Services Pricing Reform

On 24 September 2012, the Treasurer of South Australia referred to the Essential Services Commission of South Australia (ESCOSA) an Inquiry into pricing reform for drinking water and sewerage retail services provided by SA Water. The Inquiry was referred to the Commission pursuant to section 35(1) of the Essential Services Commission Act 2002.

Pricing Orders issued by the Treasurer pursuant to section 35 of the Water Industry Act 2012

Below are the Pricing Orders issued by the Treasurer pursuant to section 35 of the Water Industry Act 2012 which are required to be published on the Department of Treasury and Finance website pursuant to section 35(8)(c) of the Act.

The Treasurer is the Minister responsible for the Essential Services Commission Act 2002 that establishes the Essential Services Commission of South Australia (ESCOSA) as economic regulator of the energy (electricity and gas), water, ports and transport industries in South Australia.

The responsibilities of ESCOSA

ESCOSA was appointed as economic regulator of the South Australian water industry from 1 July 2012. ESCOSA is responsible for licensing, consumer protection and retail pricing and will publicly consult on its future price determinations.

Licence Fees under the Water Industry Act 2012

Pursuant to section 24(4) of the Water Industry Act 2012 please find advice provided to the Treasurer by the Essential Services Commission of South Australia regarding licence fees for water licences.

Please also find a schedule for the annual licence fee set by the Treasurer pursuant to section 19 and 24 of the Water Industry Act 2012 and to transfer a licence also set by the Treasurer pursuant to section 29 of the Water Industry Act 2012.

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