Information request under rule 35 of the Water Charge (Infrastructure) Rules 2010

27 March 2015

Water NSW responses are in text boxes below each question.

  1. Water NSW’s application of 9 March 2015 proposed that the ACCC set 2015-16 prices as per the ACCC Final Decision (tables 1.1, A 1, B 1, B 2, B 3, B 4 and B 5 of Final Decision on State Water Pricing Application: 2014-15 to 2016-17). The prices in those tables are expressed in $2013-14. Please clarify whether Water NSW’s application seeks ACCC approval to apply the dollar amount of the prices as they appear in those tables, or the prices in $2015-16 following an adjustment for CPI.

Water NSW response (27 March 2015)
Water NSW requests 2015-16 charges in $2015-16. That is, with inflation adjustment.
  1. The completed model submitted by Water NSW with its application does not include the forecast number of minor customers in the Fish River valley in 2015-16. Please confirm this number.

  1. Table 1 in Water NSW’s application shows the prices calculated by Water NSW from the annual price control model on the basis of the UOM and updated volume data for the Border, Gwydir, Namoi, Peel, Lachlan, Macquarie, Murray, Murrumbidgee and Lowbidgee valleys. Following staff analysis, [the ACCC has] reached different price outcomes as a result of amending the usage forecasts for 2014-15 so they are not affected by the inclusion of tradefrom NSW to interstate in historical demand data. This ensures that the prices for 2014-15 remain fixed at the levels determined by the ACCC, and the under-recovery feeding into the 2015-16 prices is correctly calculated. Please confirm if Water NSW agrees with this approach.

Water NSW response (1 April 2015)
Water NSW agrees with this approach.
  1. As set out on page 62 of the ACCC’s 2014 Determination, bulk water charges for 2015-16 will depend on actual CPI movements, volume forecasts and unders and overs, calculated according to the form of control formulae (set out on pages 68-77 of the 2014 Determination). [The ACCC has] consider that the regulated charges for 2015-16, determined by the ACCC in its 2014 Determination (for the purposes of rule 37(2) of the WCIR), are the outcomes of the formulae set out on pages 68-77 of the 2014 Determination. Please advise whether Water NSW seeks ACCC approval of prices other than those determined by the formulae set out by the ACCC in its 2014 determination under rule 37 and if so, whether Water NSW seeks this approval on the grounds of changes in the demand or consumption forecasts (rule 37(2)(a)) and/or price stability (rule 37(2)(b)).