Development of advice on water charge rules—infrastructure charges

On 26 June 2009, the ACCC provided its final advice on the water infrastructure charge rules to the Minister for Climate Change and Water (the minister). Water infrastructure charge rules relate to charges levied by irrigation infrastructure operators and bulk water operators.

The purpose of the water infrastructure charge rules is to contribute to achieving the Basin water charging objectives and principles including the efficient and sustainable use of water resources and water infrastructure assets, efficient water markets and consistency in charging practices across regions where water can be traded. In developing its advice, the ACCC had regard to current governance and charging arrangements of operators. The ACCC also sought to balance the costs and benefits of regulation for the various types of operators.

The minister has released copies of the final advice and draft rules on the Department of Environment, Water, Heritage and the Arts website while she considers the advice.

Request for additional advice on rules for accreditation

On 14 September 2009, the minister wrote to the ACCC requesting further advice, including draft rules, in relation to the accreditation of state agencies by the ACCC under the water (infrastructure) charge rules (media release). This further advice is to be provided to the minister by 28 February 2010.

Draft advice on rules for accreditation

The ACCC released its draft advice and rules on the accreditation of state agencies by the ACCC under the water (infrastructure) charge rules on 6 November 2009.

The draft advice sets out the ACCC’s proposed framework for the accreditation of state agencies to carry out determinations and approvals of regulated charges for certain irrigation infrastructure operators and bulk water operators within the Murray-Darling Basin.

The ACCC invites interested parties to make a submission on the draft advice and draft rules.

Submissions responding to the draft advice closed on Friday 18 December 2009. Submissions provided to the ACCC can be accessed below.

Background - Development of advice

In December 2007, the minister wrote to the ACCC requesting advice on the water charge rules as required under ss.93(1) of the Water Act 2007 by June 2009.

The ACCC provided its advice, including draft water infrastructure charge rules, to the minister in June 2009.

The ACCC engaged in extensive stakeholder consultation in formulating its advice. It released a series of consultation documents including two issues papers, a position paper and the draft advice, including draft rules. In total the ACCC received 72 submissions in the course of its consultation process. The ACCC also conducted a public forum and met with many stakeholders, including jurisdictional governments and the larger infrastructure operators in the Murray Darling Basin.

In preparing its advice on the water infrastructure charge rules the ACCC considered matters raised during stakeholder consultation as well as the Basin water charging objectives and principles and the governance and charging arrangements of operators.

Copies of the issues papers, the position paper and draft advice are available below.

Public Submissions

To date the ACCC has received submissions on the following water charge (irrigation infrastructure operators and bulk water provider) rules papers:

Public Forum

On 30 April 2009, the ACCC conducted a public forum to discuss its draft advice on water infrastructure charge rules.

Copies of the presentations made and the summary of discussions are provided below.

Additional help

If you need copies of ACCC publications or require further help please contact the ACCC: Infocentre 1300 302 502 or email: water@accc.gov.au