Legislative Assembly for the ACT: 1998 Week 2 Hansard (19 May) . . Page.. 340 ..
MR SPEAKER: I present an instrument prepared pursuant to subsection 14(1B) of the Interpretation Act 1967 relating to statutory references to particular committees of the Legislative Assembly.
Independent Pricing and Regulatory Commission Report
MS CARNELL (Chief Minister and Treasurer) (3.24): Mr Speaker, for the information of members, I present the Independent Pricing and Regulatory Commission's report entitled "Investigation into ACTEW's electricity, water and sewerage charges for 1998-99 - Price direction". Mr Speaker, I move:
That the Assembly takes note of the paper.
Mr Speaker, today I am tabling the second report of the Independent Pricing and Regulatory Commission. The Independent Pricing and Regulatory Commission is an independent body which determines the pricing directions of regulated industries, in this case ACTEW. It is governed by legislation, the Independent Pricing and Regulatory Commission Act 1997.
The commission is conducting a two-stage investigation into charges for electricity, water and sewerage services supplied by ACTEW. This report, released on 15 May, deals with the short-term price path and covers the first stage of this investigation, which extends from 1 July 1998 to 30 June 1999. The second stage of the investigation, the medium-term price path, covers a two-year period from 1 July 1999 to 30 June 2001 and is due to be completed by October 1998.
I will not go into great detail; but, in summary, the report makes the following determinations: Electricity network revenue will be frozen at the 1997-98 level after adjustment for customer and sales growth. The allowed revenue for the regulated electricity retail margin will be frozen at the 1997-98 level, after adjustment for customer sales and sales growth and subject to allowance for loss of contestable customers. Within the overall revenue cap there is the flexibility to increase domestic electricity prices by up to 3 per cent. An increase in domestic prices relative to business prices will partially address existing cross-subsidies.
The charge for water consumed in excess of one kilolitre and up to 300 kilolitres will be 37c per kilolitre. The charge for water consumed in excess of this quantity will be 76c per kilolitre. The current charges are 35c a kilolitre for the first 350 kilolitres of water consumed in excess of one kilolitre and 76c per kilolitre for water consumed in addition to that quantity. The fixed charge will decrease from $135 to $125. Sewerage charges will be frozen at current levels.