The Australian Competition and Consumer Commission today issued its position paper seeking submissions on the development of water charge rules for irrigation infrastructure operators and bulk water operators.
The water charge rules form a key component of the Water Act 2007, which creates new institutional and governance arrangements to address the sustainability and management of water resources in the Murray-Darling Basin.
"The main objective in developing the water charge rules is to promote the economically efficient and sustainable use of water resources, the efficient use of, and investment in, water infrastructure, and to facilitate the efficient operation of water markets," ACCC Chairman, Mr Graeme Samuel, said today.
"In developing its positions, the ACCC has also had regard to current governance and charging arrangements. With this in mind, the ACCC is proposing a tiered approach for the regulation of water charges payable to operators. This approach balances the costs and benefits of regulation for the various types of operators."
The position paper is part of an ongoing consultation process. Submissions to the position paper are to be provided to the ACCC by Monday 24 November 2008. Details on how to make a submission can be found in the position paper, which is available from the ACCC website: www.accc.gov.au
There will be further opportunity to inform the ACCC's development of water charge rules prior to preparation of final advice to the Minister. Specifically, the ACCC proposes to prepare draft rules to be released in early 2009 for further consultation.
Media inquiries
Ms Lin Enright, Media, (02) 6243 1108or 0414 613 520
Ms Lin Enright, Director, Media Unit, 0414 613 520
The Water Act 2007, which came into effect on 3 March 2008, creates new functions for the ACCC. These include the development of water charge rules and water market rules for consideration by the Minister; and for the ACCC to monitor compliance with and enforce of these rules. While not yet asked to provide advice, the Act also allows for the ACCC to advise the new Murray Darling Basin Authority on water trading rules. This position paper brings together two separate consultation process for which issues papers were released earlier in the year; one on water charge rules for charges payable to irrigation infrastructure operators; one on bulk water charges.
