Policy and research update

Water Industry Competition Act

In June 2007, the NSW Department of Water and Energy released a consultation paper seeking comment on proposed regulations to sit under the Water Industry Competition Act 2006.

The Act aims to encourage competition in the water industry and promote the development of infrastructure for the production and reticulation of recycled water. It aims to do this by establishing:

• a licensing regime for private sector participants in the water industry
• a comprehensive access regime to facilitate the negotiation of water and sewage storage and transportation
  using existing networks, and
• binding arbitration of sewer ‘mining’ disputes.

New South Wales is the first state in Australia to legislate competition in the water industry and the short term impact on households and small businesses is not clear as yet.

Based on EWON’s experience of competition in energy, we are especially concerned about marketers taking advantage of vulnerable or elderly customers.

EWON’s submission to the Department in July 2007 argued for:

• sound regulation and licensing of any new retailers entering the market
• protection for customers against misleading marketing and unwanted transfers to new water providers
• guidelines for managing billing issues following the unanticipated business failure of a water supplier or their withdrawal from the market.

EWON awaits the implementation of the regulations and will closely monitor the impact water competition may have on NSW water customers.

Our submission is available in the Policy and Research area of our website.