The ACT Independent Competition and Regulatory Commission (ICRC) have released a discussion paper reviewing Icon Water’s tariff structure.
The paper is the first step in its review of Icon Water’s water and sewage services tariffs.
Senior Commissioner, Malcolm Gray, said, “The current structure of Icon Water’s water and sewage services tariffs has served the ACT community well over the last 15 or so years. Nonetheless, in recent years a number of questions have been raised about whether improvements could be made to the way tariffs are structured.
“The issues paper sets out a proposed framework to guide the Commission’s evaluation of the existing tariff structure and potential alternatives. This framework includes an overarching objective and a set of pricing principles,”
“The issues paper also canvasses a range of contextual and specific pricing issues that are relevant to this review,” Mr Gray said.
Icon Water has welcomed the ICRC’s discussion paper and said the review provides a timely opportunity for all parties to be more informed by the views of the community to feed into the next regulatory period.
Icon Water has already been closely considering a number of the issues that are raised in the ICRC discussion paper. The need for review of the Tier 2 water price level is an issue that has been raised by Icon Water customers from time to time, and was raised by Icon Water in its 2012 submission to the ICRC.
The paper invites stakeholders to make a submission to the larger review. The Commission is now planning to publish three technical papers on specific pricing matters: water demand elasticity, marginal cost pricing and trade waste pricing. The closing date for submissions on all of these papers is 1 July 2016.