What the ACCC does
- We monitor and report on regulated water charges.
- We enforce water charge rules and publish guidance material on these rules.
What the ACCC can't do
- We don’t oversee water markets.
- We don’t resolve individual disputes.
The water charge rules provide price transparency for infrastructure and related services in the Murray-Darling Basin.
The rules came into effect on 1 July 2020, following the ACCC review of the water charge rules in 2016.
Infrastructure operators must include most charges on their schedule of charges, under the water charge rules.
An infrastructure operator’s schedule of charges must contain certain information, including:
See Water Charge Rules 2010 - Example schedule of water charges ( PDF 142.14 KB )
It is not intended to be a template.
When one operator provides on-river infrastructure services (usually a bulk water service) to another infrastructure operator, that second operator (usually an off-river infrastructure operator) is likely to incur infrastructure charges payable to the on-river infrastructure operator.
These charges may be recovered by the off-river infrastructure operator by passing them through to its customers. The charges paid by the customer are commonly referred to as ‘pass-through’ charges.
There are different types of charges that may be recovered using pass-throughs. The water charge rules divide pass-through charges into 2 categories:
These charges are mainly levied on an infrastructure operator in relation to water held to cover distribution losses, or infrastructure used by the operator to extract water from a watercourse.
Infrastructure operators are not required to levy a separate charge to recover network operation charges. If they do, they can recover no more than the charge they are passing through.
These mainly recover planning and management or infrastructure charges that are paid by the infrastructure operator.
Infrastructure operators must levy a separate charge to recover an ancillary charge. The total pass through charge(s) must be no more than the total amount of the ancillary charge(s).
The charges that infrastructure operators include in a schedule of charges can include one-off charges or ‘capital contributions’.
Infrastructure operators or their customers may apply to the ACCC for an exemption from the requirement that the operator publish certain infrastructure charges in their schedule of charges.
This may be done if the operator or customer believes, on reasonable grounds, that disclosure of the charges would result in a material financial loss or material detriment to the operator or customer.
Any application must be made before the operator and customer enter into a contract.
If the ACCC grants the infrastructure operator or the customer an exemption from the schedule of charges publication requirements, the operator must publish certain information in relation to this exemption including:
The water charge rules are intended to strike a balance between:
An infrastructure operator must provide a termination information statement to the customer before the customer terminates.
See Water Charge Rules 2010 - Example termination information statement ( PDF 35.25 KB )
It is not intended to be a template.
The water charge rules set a limit on the maximum termination fee and regulate when a termination fee can be imposed.
The rules include a formula for determining the maximum termination fee that an infrastructure operator can charge a customer that is terminating their water delivery right or drainage right. This formula applies unless a contract between the operator and holder of the right provides for a lower amount.
The rules limit the maximum general termination fee that an infrastructure operator can levy to:
An infrastructure operator may also apply an additional termination fee, where that fee has been approved by the ACCC.
We have published information to help infrastructure operators and their customers understand when we can approve an additional termination fee.
The ACCC decides whether infrastructure operators that provide a bulk water service within the Murray-Darling Basin (bulk water operator) are operators under Part 6 of the water charge rules.
A bulk water service is a service for the storage or delivery of water on-river.
If we decide that an operator is a Part 6 operator, we must also decide whether to grant the operator an exemption from the operation of Part 6 of the water charge rules.
A bulk water operator’s infrastructure charges are determined under state law if:
The ACCC determines a bulk water operator’s infrastructure charges if: