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Urban Water and Waste Water Pricing Compliance Reviews
In addition to performing core legislative functions, the Commission, at the request of the Government, previously conducted biannual assessments of Tasmanian councils' compliance with Tasmania's National Competition Policy water reform obligations as they apply to urban water and wastewater services. The primary focus of each review is to examine whether councils are recovering sufficient revenue from their water and wastewater businesses to recover all costs, but no so much as to provide a rate of return that incorporates monopoly profits. Legislation was passed in 2008 which will significantly change the structure of the provision of water and waste water services in Tasmania. Consequently, the Commission will no longer be required to undertake these reviews.
2006-07 Review
 Local Government Water and Wastewater Businesses - Cost Recovery Compliance Review 2006-07 Report, February 2008
In late 2007, the Government issued Terms of Reference to the Government Prices Oversight Commission (GPOC) to conduct an inquiry under section 39A of the Government Prices Oversight Act 1995 to assess Tasmanian councils’ compliance with the Urban Water and Wastewater Pricing Guidelines in 2006-07. This was the fifth such review that GPOC conducted for the Government.
The principal purpose of the review was to assess Councils’ compliance with the requirement for these businesses to achieve cost recovery within the upper and lower limits specified in the Urban Water and Wastewater Pricing Guidelines.
Based on the returns provided by the Councils and their Annual Reports, GPOC found the majority of Councils recovering revenues between the upper and lower limits specified in the Guidelines.
GPOC was also asked to comment on a number of other matters such as asset valuations, cost of asset consumption, cross-subsidies, Community Service Obligations, own-use transfers and where relevant, the appropriateness of two-part pricing structures.
The Review was completed and the Report forwarded to the Minister during the second week of February 2008.
2004-05 Review
Local Government Water and Wastewater Businesses - Cost Recovery Compliance Review 2004-05 Report, February 2006
The Audit was undertaken in accordance with the Terms of Reference issued to the Commission in October 2005, a copy of which is attached to the Report.
The Terms of Reference for the annual Review requested the Commission examine whether Tasmania's Councils are meeting the requirements for cost recovery for their water and wastewater businesses. In addition the Commission was required to consider a number of other issues such as asset valuations, cost of asset consumption, cross-subsidies, Community Service Obligations, own-use transfers and where relevant, the appropriateness of two-part pricing structures.
2003-04 Review
Local Government Water and Wastewater Businesses - Cost Recovery Compliance Review 2003-04 Report, January 2005
The Audit was undertaken in accordance with the Terms of Reference issued to the Commission in October 2004, a copy of which is attached to the Report.
The terms of reference for the 2003-2004 Urban Water and Waste Water Audit requested the Commission investigate the use of property-based charges for the fixed component of two-part tariff structures and for single-part tariffs and whether the use of property-based charges constitutes a cross-subsidy that is likely to create inefficiencies in the use and provision of water and wastewater services.
2002-03 Review
Local Government Water and Wastewater Businesses - Full Cost Recovery Compliance Review 2002-03 Report, February 2004
2001-02 Audit
The Audit of Local Government Water and Wastewater Businesses 2001-02 Report to the Treasurer and Minister for Local Government, April 2003, on local government's compliance with the Urban Water and Wastewater Pricing Guidelines issued by the Department of Premier and Cabinet.
The Commission has agreed that the research report Urban Water Pricing: Principles for Efficient Water Pricing, prepared by Dr Hugh Sibly, Senior Lecturer at the University of Tasmania should be published to provide a more in depth analysis of the issues in setting efficient urban water prices. |
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