ACCC releases issues paper for bulk water charge rules

The Australian Competition and Consumer Commission today released its issues paper seeking submissions on the development of water charge rules for bulk water suppliers.

The water charge rules are an important component of the new Water Act 2007. The development of water charge rules will contribute to the sustainable and efficient management of water resources and infrastructure in the Murray-Darling Basin. 

"Water charge rules applied consistently across the Basin will benefit water users," ACCC Chairman, Mr Graeme Samuel, said.  "Bulk water charges that are cost-based and transparent will promote efficient investment in water infrastructure assets and facilitate the efficient functioning of water markets."

A copy of the issues paper, which includes details on how to make a submission, is available from the ACCC website, www.accc.gov.au.

Submissions must be provided to the ACCC by 5 p.m. on Friday, 18 August 2008.

There will be further opportunity to inform the ACCC's development of the bulk water charge rules prior to preparation of final advice to the Minister. Specifically, the ACCC proposes to prepare draft rules to be released in the second half of 2008 for further consultation. 

Background

The Water Act 2007, which came into effect on 3 March 2008, creates new functions for the Australian Competition and Consumer Commission. These include the development of water charge rules and water market rules for consideration by the Minister and advising the new Murray Darling Basin Authority on water trading rules. The Act also requires the ACCC to monitor compliance with and enforce the water market rules and water charge rules.

The Minister for Climate Change and Water, Senator Penny Wong, has requested the ACCC to develop advice on water market rules and water charge rules. 

 This issues paper relates to water charge rules for bulk water services and follows the ACCC's previous issues paper for charge rules relating to irrigation infrastructure operators, released on 30 May 2008.

Bulk water services include water harvesting, storage and delivery services that are provided to downstream water users such as irrigation infrastructure operators, town water authorities and industry.

The ACCC will shortly release its issues papers in respect of charges levied to recover the costs of water planning and management activities under the water charge rules.