SEQ urban water retail price monitoring 2010–11

We provided a draft report to the government on 31 January 2011.

We developed information requirements to assist the SEQ distributor-retailer entities to provide information to us for the purposes of the price monitoring investigation.

The requirements were meant to be read in conjunction with our final report on SEQ interim price monitoring, which sets out the proposed framework to apply to SEQ water and wastewater distribution and retail entities.

These documents are available below.

The Government referred the monopoly distribution and retail water and wastewater activities of Queensland Urban Utilities, Allconnex Water and Unitywater to us for a price monitoring investigation covering the period from 1 July 2010 to 30 June 2011.

Under the referral, we were asked to:

1. provide timely and transparent information to customers about the costs and other factors underlying the provision of water and wastewater services
2. monitor the change in prices of distribution and retail water and wastewater services for households and small business customers having regard to the CPI price limit as described in the South East Queensland Water (Distribution and Reform) Act 2009
3. monitor the change in prices for water and wastewater services not included in the CPI price limit as described in the South East Queensland Water (Distribution and Reform) Act 2009 having regard to the change in revenue from these services compared to the change in the total prudent and efficient cost of carrying on the relevant activity
4. monitor the maximum allowable revenue based on the total prudent and efficient costs of carrying on the activity.

A copy of the formal direction to us is available below.