Water charge (infrastructure) rules commence: ACCC issues guides

The Water Charge (Infrastructure) Rules 2010 commenced on 12 January 2011 after being approved by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon Tony Burke MP.

The rules regulate charges for infrastructure services provided by rural water infrastructure operators in the Murray Darling Basin and take effect following a three month transition.

The Australian Competition and Consumer Commission today published information to assist infrastructure operators to understand their new obligations.

Water infrastructure operators own or operate infrastructure which is used for the storage, delivery and drainage of water for the purpose of providing a service to others. This includes bulk water operators and irrigation infrastructure operators.

Under the rules, all rural water infrastructure operators must publish their schedule of charges. In addition, larger operators will be required to undertake mandatory customer consultation in setting charges or will be subject to price determinations by the ACCC. The ACCC is responsible for monitoring and enforcing compliance with the new rules as well as assessing applications from state regulators to implement price determinations under the rules.

ACCC chairman Graeme Samuel said the rules will encourage pricing transparency, promote economically efficient use of rural water infrastructure and facilitate the efficient functioning of water markets.

The rules operate in conjunction with the

• Water Market Rules 2009 
• Water Charge (Termination Fee) Rules 2009 and 
• Water Charge (Planning and Management Information) Rules 2010

which have already made in accordance with the Water Act 2007.

The ACCC's fact sheet and guidelines for operators will be available at www.accc.gov.au/water.