Water and Sewerage Industry Act 2008

The Regulator is to make price determinations that apply to a regulated entity in respect of a regulated service.

In making a price determination under subsection (1), the Regulator must – adopt an approach and methodology which the Regulator considers will best meet the objective of this Act; and determine prices, terms and conditions, including developer charges, for water services and sewerage services in accordance with the pricing principles referred to in section 68 or any principles prescribed by regulations under that section; and consider any proposed price and service plan submitted under section 65; and consider any customer contract; and ensure that the price determination takes into account and clearly articulates any trade-offs between costs and service standards; and not take into account a change in a rate, prescribed in a regulation for the purposes of section 68(1A)(c)(iv), that comes into force at any time – after a regulated entity is required to submit to the Regulator a proposed price and service plan that may be approved by the Regulator after the price determination is made; and before the price determination to which the proposed price and service plan relates is made; and have regard to any matters contained in the regulations.

Without limiting the generality of subsection (1), a price determination made under this section may provide for one or more of the following:fixing a maximum price, or maximum rate of increase of price, for a regulated service; specifying pricing policies or principles that are to be applied in relation to a regulated service; specifying a maximum price, or maximum rate of increase of price, determined by reference to a general price index, the cost of production, a rate of return on assets employed or any other factor specified in the determination; specifying a maximum price, or maximum rate of increase of price, determined by reference to quantity, location, period or other factor specified in the determination relevant to the rate or provision of a regulated service; fixing a maximum revenue in relation to a regulated service; specifying a factor or factors to be applied, and the manner in which such a factor is or factors are to be applied, in setting prices, terms and conditions for a regulated service.

Nothing in this section is to be taken to permit a price determination made under this section to set – a price, other than a maximum price or maximum rate of increase of price; or an amount of revenue other than a maximum amount of revenue.

Before the Regulator makes a price determination under subsection (1), the Regulator is to publish, in daily newspapers published and circulating in Tasmania, a notice of the Regulator's intention to make a price determination.

The notice under subsection (4) is to include information as to where a copy of the proposed price determination, and the proposed price and service plan on which the proposed price determination is based, can be obtained or viewed.

The Regulator is to publish the proposed price determination, and the proposed price and service plan on which the proposed price determination is based, on the Regulator's internet website.

The Regulator is to make a price determination in accordance with section 67.

The regulations may provide for – the conduct of investigations by the Regulator into the price and pricing policies of regulated entities; and the appointment of assistants to the Regulator for the purposes of carrying out investigations referred to in paragraph (a); and the liability of regulated entities for the costs by the Regulator incurred in undertaking such investigations; and any related matter.