Water Industry Competition Act 2006

This Act is the Water Industry Competition Act 2006.

This Act commences on a day or days to be appointed by proclamation.

The objects of this Act are—

to protect public health and safety and the environment in connection with the water industry, including in the longer term, and

to protect the interests of consumers, particularly small retail customers, in the quality, reliability and price of water and sewerage services, including in the longer term, and

to facilitate the efficient, reliable and sustainable provision of water and sewerage services, having regard to financial, environmental and social considerations, and

to promote the sustainable use of resources in connection with the water industry, and

to facilitate competition in the water industry with a view to encouraging innovation and improved efficiency in the industry.

Words and expressions that are defined in the Dictionary at the end of this Act have the meanings set out in that Dictionary.

Notes included in this Act do not form part of this Act.

The classes of water industry infrastructure are as follows—

infrastructure for the purpose of the production or supply of drinking water,

infrastructure for the purpose of the capture and treatment of stormwater for the production, supply and use of recycled water,

infrastructure for the purpose of the collection and treatment of sewage for the production, supply and use of recycled water,

infrastructure for the purpose of the collection and further treatment of recycled water for the supply and use of the further treated recycled water,

infrastructure for the purpose of the collection and treatment of sewage for disposal and the disposal of the treated sewage,

infrastructure for another purpose prescribed by the regulations.

This Act binds the Crown in right of New South Wales and, in so far as the legislative power of Parliament permits, the Crown in all its other capacities.

This Part applies to the following—

water industry infrastructure used or to be used for providing water or sewerage services to 30 or more small retail customer premises (a category A scheme),

water industry infrastructure used or to be used for the production of drinking water, including a filtration, treatment or desalination facility, that has a design capacity of more than 500 kilolitres each day, together with a reticulation network connected to the infrastructure and used to convey anything to or from the infrastructure,

water industry infrastructure used or to be used for the treatment of sewage, stormwater or recycled water that has a design capacity of more than 750 kilolitres each day, together with a reticulation network connected to the infrastructure and used to convey anything to or from the infrastructure,

water industry infrastructure declared by the regulations to be water industry infrastructure to which this Part applies.

However, this Part does not apply to the following—

water industry infrastructure within the area of operations of a public water utility and operated by or on behalf of the public water utility, other than as a last resort provider,

water industry infrastructure excluded from the application of this Part by the regulations.

For the purposes of determining whether this Part applies to water industry infrastructure by operation of subsection (1)—

initial and planned future stages of development of the infrastructure are to be taken into account, and

the design capacity of the infrastructure is to be determined in accordance with guidelines issued by IPART and published in the Gazette and on IPART’s website.

In considering whether or not an approval or licence is to be granted or varied under this Part and what conditions are to be imposed on an approval or licence, regard is to be had to the objects of this Act and the following additional objects—

to promote the adoption of written policies concerning the use of water resources as prescribed by the regulations, if any,

to mitigate the potential for adverse financial implications for small retail customers generally arising from the activities proposed to be covered by the approval or licence,

to promote the equitable sharing among participants in the drinking water market of the costs of water industry infrastructure that significantly contributes to water security.

A person must not construct water industry infrastructure to which this Part applies unless the construction—

is authorised by a scheme approval, and

is carried out by or on behalf of the registered operator for the scheme.

Maximum penalty—

for a corporation—18,000 penalty units, or

for an individual—3,500 penalty units.

The regulations may prescribe exceptions to this section.

A person must not operate water industry infrastructure to which this Part applies unless—

the infrastructure is substantially constructed as authorised by a scheme approval, and

the operation is authorised by an operational approval, and

the person is the registered operator for the infrastructure.

Maximum penalty—

for a corporation—18,000 penalty units, or

for an individual—3,500 penalty units.

This section does not apply to the operation of water industry infrastructure in the course of commissioning the infrastructure.

The regulations may prescribe further exceptions to this section.

A person must not sell water or sewerage services provided by means of a regulated scheme, including the service of connecting premises to the water or sewerage services, unless—

the person is the registered retailer for the infrastructure, and

the sale is authorised by the person’s retailer licence.

Maximum penalty—

for a corporation—18,000 penalty units, or

for an individual—3,500 penalty units.

In this section, sell water or sewerage services includes charging a fee or amount to connect premises to a water or sewerage service, including charging an infrastructure charge, developer charge or administration charge related to connecting premises to a service.

Subsection (1) does not apply to a council.

This section does not apply to the sale of the service of connecting premises to the water or sewerage services by a registered operator for a scheme if—

the scheme is under construction, and

no person has been registered as the registered retailer for the scheme.

The regulations may prescribe further exceptions to this section.

An application for a scheme approval or operational approval is to be made to IPART.

Note.

Section 12 imposes requirements for an application and allows an application to be rejected if the requirements are not complied with.

An application for a scheme approval for water industry infrastructure—

may be made by any person, and

must only be made with the consent of the owner of the land on which the infrastructure, other than pipelines within the reticulation network connected to the infrastructure, is or is to be located.

An application for an operational approval for water industry infrastructure—

may be made by any person, and

must specify the scheme and scheme approval to which it relates.