Urban Drainage Act 2013

Subject to subsection (2), where a council and a third-party owner of infrastructure or operator of stormwater services cannot reach agreement on the contract details for the provision of stormwater services, either party may refer the matter to an arbitrator to be appointed in accordance with the Commercial Arbitration Act 2011.

A matter may be referred to an arbitrator only after at least one of the following conditions has been satisfied:at least 6 months have passed since the service of the notice under section 7 and in the opinion of one or both parties it is unlikely a resolution will be quickly reached; in the opinion of the council involved, the third-party provider of stormwater services is unreasonably withholding consent for the council to use the third-party's infrastructure.

For the purposes of subsection (1), an arbitrator has, in addition to the powers conferred by the Commercial Arbitration Act 2011, the power to determine – the conditions relating to the supply of stormwater services; and a price for those services and transition price policies to minimise price shocks; and any performance indicators to be implemented and modified over time; and the period over which the commercial agreement applies; and contract dispute resolution processes.

Before making a determination under subsection (3), the arbitrator is to seek advice from – the Department; and the Tasmanian Economic Regulator appointed under section 9 of the Economic Regulator Act 2009; and any other persons the arbitrator thinks fit.

In making a determination in respect of assets that have been transferred from a council to a water and sewerage corporation in accordance with a notice under section 41 of the Water and Sewerage Corporations Act 2008, an arbitrator must try to achieve the best outcomes for the community in respect of – limiting price shocks; and providing for the equitable distribution of costs.

In making a determination to which subsection (5) applies, the arbitrator is to take into account the following:that the asset will be renewed over time; that the provider should be provided with a reasonable opportunity to recover the efficient costs which it reasonably incurs in providing the service and complying with its regulatory obligations; the returns on council-owned stormwater assets in Tasmania; that both parties are not to be constrained from executing their statutory obligations; that any charge for providing stormwater services must take into account any costs of operating and maintaining the service that have been paid by another customer; any other matter that is prescribed or that the arbitrator considers relevant.