Price regulation
Regulation of water pricing by independent bodies in each state and territory provides for pricing transparency.
Under the National Water Initiative (NWI), independent bodies are required to:
- set or review prices, or price setting processes, for water storage and delivery by government water service providers, on a case-by-case basis, consistent with the principles in paragraphs 65 to 68 of the NWI
- publicly review and report on pricing in government and private water service providers to ensure that the principles in paragraphs 65 to 68 of the NWI are met.
Independent regulators
In its 2007 Biennial Assessment of progress against the NWI, the National Water Commission reported that all states have established independent regulatory bodies, with varying roles and authority. (See also 2009 Biennial Assessment.)
The extent to which states involve independent bodies in pricing processes differs across the country. For example:
- in Victoria an independent regulator determines water charges for all water businesses
- in Queensland, most water businesses set their own charges with the economic regulator providing oversight only where matters are referred to it by the Queensland Government
- in South Australia, an independent regulator reviews the price setting processes underpinning government water pricing decisions.
The National Water Commission has recommended to the Council of Australian Governments (COAG) that stronger independent pricing oversight is required in some states.