Water Industry Act 2012

The arbitrator must take into account—

the objects of this Act; and

the regulated operator's legitimate business interests and investment in the regulated infrastructure; and

the costs to the regulated operator of providing access as sought by the proponent (including the costs of any necessary alteration of, or addition to, existing infrastructure) but not costs associated with losses arising from increased competition in upstream or downstream markets;

the economic value to the regulated operator of any additional investment that the proponent or the regulated operator has agreed to undertake; and

the interests of all persons holding contracts for use of any regulated infrastructure or infrastructure services; and

firm and binding contractual obligations of the regulated operator or other persons (or both) already using any regulated infrastructure or infrastructure services; and

the operational and technical requirements necessary for the safe and reliable operation of the regulated infrastructure; and

the economically efficient operation of any regulated infrastructure; and

the benefit to the public from having competitive markets;

any direction given to the regulated operator (in the case of a regulated operator that is a public corporation) by its Minister under the

the pricing principles specified in subsection (2); and

other matters the arbitrator considers appropriate.

The pricing principles relating to the price of access are as follows:

that access prices should be set so as to generate expected revenue that is at least sufficient to meet the efficient costs of providing access and include a return on investment commensurate with the regulatory and commercial risks involved;

that access prices should allow multi‑part pricing and price discrimination when it aids efficiency;

that access prices should not allow a vertically integrated operator to set terms and conditions that would discriminate in favour of its downstream operations, except to the extent that the cost of providing access to others would be higher;

that access prices should provide incentives to reduce costs or otherwise improve productivity.

In addition—

the arbitrator cannot make an award that would have the effect of requiring the regulated operator to bear any capital cost of an alteration of, or addition to, any infrastructure unless the regulated operator agrees;

the arbitrator cannot make an award that would prejudice the rights of a person who has the use of the regulated infrastructure or infrastructure services under an earlier contract or award unless that person agrees;

the arbitrator cannot make an award that is inconsistent with any requirement under—

the Landscape South Australia

the Safe Drinking Water

the South Australian Public

the Environment Protection

any other law or legislative requirement relating to health, safety or the environment.

Without limiting subsection (3)(c), the arbitrator must accept any advice provided by a department of the Public Service or other public sector agency that is responsible for assisting a Minister in the administration of an