Table A1.2: Compliance with Section 20(2) and the terms of reference Final Draft Terms of reference How the Panel has taken the matter into account Report Report chapter(s) chapter(s) (a) policies of the ACT Consideration of the ACT Strategy (Released 7 4 Government as they August 2014) for example, in relation to demand – relate to water security forecasts. Consideration of the of achieving the mandated level and the use of water 4 8 of water security in this regulatory period when assessing how the costs of the water security projects should be recovered. (b) national water Consideration of the 2010 National Water Initiative initiatives, policies and pricing principles, which aim to ensure that pricing is 4 agreements used primarily to achieve economically efficient water use and water service provision, and to ensure the financial viability of water service providers. (c) the impact of a price on Consideration of how carbon costs are currently 6 11 carbon on the provision of accounted for in Icon Water’s expenditure forecasts and water and sewerage services whether any downward adjustment is required in the ACT following the abolition of the carbon price. (d) the ability of the pricing Consideration of the manner in which the costs of the path to revenue water security projects should be recovered (including 4 8 recovery requirements to consideration of indexation or non-indexation of the RAB). the consumer benefits accrued from the water security program (e) all potential regulatory Consideration of form of regulation issues, including 3 6 and 7 models, including measures to deal with risk and uncertainty over the consideration of the regulatory period, and the appropriate method to be provision of sufficient used to determine prices. Consideration of the need to minimise price fluctuations flexibility in price setting 3 and 9 14 within and between regulatory periods when setting across the regulatory water and sewerage charges. period to minimise the impact of significant (f) the legislative See Table A1.1 above price fluctuations requirements outlined in section 20 of the Act None identified (g) any other matters considered relevant
Table A1.2: Compliance with Section 20(2) and the terms of reference Terms of reference Final Report chapter(s) Draft Report chapter(s) How the Panel has taken the matter into account (a) policies of the ACT Government as they relate to water security and the use of water 7 4 Consideration of the ACT Strategy (Released August 2014) – for example, in relation to demand forecasts. 4 8 Consideration of the of achieving the mandated level of water security in this regulatory period when assessing how the costs of the water security projects should be recovered. (b) national water initiatives, policies and agreements 4 Consideration of the 2010 National Water Initiative pricing principles, which aim to ensure that pricing is used primarily to achieve economically efficient water use and water service provision, and to ensure the financial viability of water service providers. (c) the impact of a price on carbon on the provision of water and sewerage services in the ACT 6 11 Consideration of how carbon costs are currently accounted for in Icon Water’s expenditure forecasts and whether any downward adjustment is required following the abolition of the carbon price. (d) the ability of the pricing path to revenue recovery requirements to the consumer benefits accrued from the water security program 4 8 Consideration of the manner in which the costs of the water security projects should be recovered (including consideration of indexation or non-indexation of the RAB). (e) all potential regulatory models, including consideration of the provision of sufficient flexibility in price setting across the regulatory period to minimise the impact of significant price fluctuations 3 6 and 7 Consideration of form of regulation issues, including measures to deal with risk and uncertainty over the regulatory period, and the appropriate method to be used to determine prices. 3 and 9 14 Consideration of the need to minimise price fluctuations within and between regulatory periods when setting water and sewerage charges. (f) the legislative requirements outlined in section 20 of the Act See Table A1.1 above (g) any other matters considered relevant None identified
Industry-Panel-Substituted-Price-Direction-FINAL.docx