ESCV application for accreditation (2019) under the Water Charge (Infrastructure) Rules 2010

On 4 September 2019, the ACCC made a final decision to accredit the Essential Services Commission (Victoria) (ESCV) under Part 9 of the Water Charge (Infrastructure) Rules 2010 (WCIR). The final decision sets out the reasons for the ACCC’s decision, the date accreditation takes effect and the terms and conditions which apply to the ESCV’s accreditation.

The accreditation is for the period 17 February 2022 to 16 June 2032. This follows the requirement under Rule 68 of the WCIR for the accreditation period to be ten years from its commencement date and provides for continuity with the current period of accreditation.

The ACCC applied one condition to the ESCV’s accreditation, that the ESCV must provide to the ACCC information relevant to the ACCC carrying out its functions under the accredited arrangements upon request. It has removed a condition of the ESCV’s current accreditation for the ESCV to follow the ACCC’s Pricing Principles when setting the charges of Part 6 and 7 operators.

Re-accreditation preserves the status quo for Part 6 operators in Victoria between regulation under the WCIR and regulation under the forthcoming Water Charge Rules 2010 (WCR), commencing 1 July 2020. That is, until the end of the transition period determined under the WCR (30 June 2023 for Lower Murray Water (LMW) and 30 June 2024 for Goulburn-Murray Water (GMW)), the ESCV will continue to set LMW and GMW’s regulated infrastructure charges under the WCIR. 

The ACCC has notified the ESCV of its decision.