Water Industry Competition Act 2006

A scheme approval must not be granted unless IPART is satisfied as to each of the following—

the infrastructure will, if constructed as authorised by the approval, be fit for purpose and capable of operating—

safely and reliably, and

in a way consistent with the national safety guidelines for the control of public health risks, and

in a way that does not present a significant risk of harm to the environment,

the applicant has established it is highly likely the proposed scheme will become financially viable to operate within a reasonable period of time and will then remain financially viable for the life of the scheme,

the applicant has established, for a regulated scheme, that it is not reasonably foreseeable that the operation of the scheme will have significant adverse financial implications for small retail customers,

the proposed registered operator of the scheme—

if the applicant is the proposed registered operator, holds an appropriate operator licence, and

if the applicant is not the proposed registered operator, has entered into an agreement with the applicant for the operation of the scheme,

the applicant has established that the proposed area of operations of the scheme is appropriate,

the scheme is unlikely to be capable of supplying water supply or sewerage services to all premises within the proposed area of operations within a reasonable period, or

the proposed area of operations excludes premises within the outermost boundary of, or near, the area of operations, including, for example, by excluded enclaves or unusual boundaries, unless the exclusion is reasonable, having regard to the characteristics of the proposed scheme, the characteristics of the premises or the services already available to the premises.

for a scheme proposed to be constructed in stages—the applicant has established that the group of premises proposed to be serviced by each stage is reasonable having regard to the orderly and economic use and development of land in the area,

matters prescribed by the regulations.

In determining an application for a scheme approval, IPART must have regard to the following—

whether disciplinary action against the proposed registered operator is pending or, as a result of disciplinary action against the proposed registered operator, the proposed registered operator is prohibited from being registered as the registered operator under a further scheme approval,

whether, in the reasonable suspicion of IPART, a statutory default within the meaning of Division 6 has occurred within 2 years before the determination is made, and the proposed registered operator, or a related corporation of the proposed registered operator, is the alleged defaulter,

the proposed registered operator, or a related corporation of the proposed registered operator, has failed to provide a service, or a connection to infrastructure, after granting a certificate of compliance relating to the service or infrastructure.

On the grant of the scheme approval, IPART must—

register the proposed registered operator referred to in subsection (1)(d) as the registered operator for the scheme, and

consider whether to make a determination under section 54 that the scheme is essential infrastructure.

For the purposes of this section, disciplinary action is pending from the time when notice is given to the licensee requiring the licensee to show cause why disciplinary action should not be taken against the licensee until—

disciplinary action is taken against the licensee, or

the decision is made that disciplinary action will not be taken against the licensee.