The Commission has completed an 18-month review of the Victorian water pricing approach . The review commenced in April 2015 with the release of an initial consultation paper. This followed the October 2014 revision of the Water Industry Regulatory Order (WIRO), which allows the Commission to consider a broad range of pricing approaches to deliver efficient pricing and service outcomes for Victorian water and sewerage customers.
The October 2016 Water Pricing Framework and Approach paper describes the approach that will underpin Victoria’s water price reviews to establish prices from 1 July 2018. The new framework puts customers at the centre of decision making by their water service provider, informed through meaningful engagement with customers. It provides stronger incentives to deliver better value to customers through the new PREMO incentive mechanism, which links reputation and financial outcomes to the level of ambition in a water business’s price proposal, in terms of Performance, Risk, Engagement, Management and Outcomes. It also holds water businesses accountable for the actions and decisions they make and for delivering the service outcomes proposed.
Our consultative 18-month review spanned:
- April 2015 – release of our initial consultation paper outlining our review process.
- June 2015 – release of a number of papers prepared by regulatory experts to assist in the ideas generation process.
- November 2015 – the Commission’s Water Pricing Conference, which featured a number of Australian and international speakers.
- May 2016 – release of our position paper proposing our new pricing approach at a high level based on the cumulative consultation undertaken so far.
- September 2016 – release of a commissioned KPMG paper, and a workshop with the water businesses, to explore how the proposed PREMO framework could apply in practice.
- October 2016 – release of a staff consultation paper on the proposed PREMO assessment and rating criteria.
We invited and received a number of submissions from water businesses, consumer groups, industry groups and other interested parties, in response to the above papers and events.
All papers, submissions and slide presentations from our review are available below.
|27 Oct 2016||
Water Pricing Framework and Approach – Final Paper
- KPMG papers – A practical application of the PREMO framework (4)
- Review of Water Pricing Approach – Position Paper (6)
- Post Conference Submissions (11)
- Presentations At Water Pricing Approach Conference (16)
- Ideas Papers Prepared for The Commission (7)