In its final decisions on the 2008 regional and rural water price review and the 2009 metropolitan Melbourne price review, the Commission approved a mechanism to allow the water businesses to apply for tariff adjustments to deal with the impact of uncertain and unforeseen events.
Examples of uncertain and unforeseen events that could justify an application under this mechanism include:
- significant changes in the timing or costs associated with major capital (or other) projects
- significant differences between actual and forecast demand levels
- changes in legislative and other Government-imposed obligations, including the introduction of a national emissions trading scheme
- catastrophic events such as fire, earthquake or act of terrorism and/or
- any other events that are not within the business’ control and for which the Commission considers an adjustment is required.
- Draft Decision (3)