On 3 April 2019, the Minister for Agriculture and Water Resources made the Water Charge Amendment Rules 2019.
The amendments update the water charge rules to improve pricing transparency and make it easier for operators to comply by:
- combining the three sets of water charge rules administered by the Australian Competition and Consumer Commission (ACCC) into one instrument;
- making schedule of charges requirements clearer;
- simplifying the calculation and enhancing the transparency of termination fees; and
- simplifying the regulatory framework by largely returning the regulation of water infrastructure charges levied by on-river infrastructure operators back to Basin States, subject to an appropriate State regulatory framework being in place.
The changes will commence on 1 July 2020.
The changes follow the Government’s consideration of the ACCC Review of the Water Charge Rules – Final Advice.
The ACCC certified its Final Advice as an independent review that met the process and analysis standards of a Regulation Impact Statement (RIS). The Office of Best Practice Regulation (OBPR) does not assess the quality of independent reviews. The ACCC was compliant with the Government’s RIS requirements.
The ACCC estimated the changes recommended in its Final Advice would reduce regulatory burden by approximately $72,000 a year. The OBPR agreed to the estimate.