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Infrastructure Partnerships Australia (IPA) and the Water Services Association of Australia (WSAA) jointly released a report today entitled “Doing the important, as well as the urgent: reforming the urban water sector”.

The report is a call for national policy leadership regarding urban water, and argues that this would elevate urban water policy above the urgent decisions made amidst a crisis—allowing instead for an approach based on good governance, long term planning and greater responsiveness to customer preferences.

The three central recommendations focus around better economic regulation, appropriate opportunities to deploy competition and clarification of governance arrangements. In particular, economic regulation is currently varied throughout the states, and the report suggests a nationally consistent framework would promote competition, provide the right incentives to businesses and improve choice and services for consumers.

Frontier (Australia) advises many clients in the water sector and assisted the IPA and WSAA in the development of the report.

For more information, please contact Marita O’Keeffe on m.okeeffe@frontier-economics.com.au or phone +61 3 9620 4488.

Rob Francis, Associate Director at Frontier (Europe), spoke at the Essential Services Commission of Victoria (ESC) Water Pricing conference on 9 and 10 November in Melbourne. The two-day event was attended by representatives from water utilities and regulators across Australia. The purpose of the event was to share ideas on options to reform the regulation of water prices in Victoria.

Rob presented two papers. On the first day, he presented the findings on Frontier’s study for the ESC on options for regulating water prices. The study evaluates the alternative methods available for regulating prices and provides a high level assessment of their applicability to the water sector in Victoria. On the second day, he presented the analysis from a paper prepared for Wessex Water on the scope to introduce direct negotiation between customers and the utility as part of the regulatory process. The paper describes the different types of negotiation and considers the cases where negotiation is most likely to be effective.

Following the ESC conference, Rob and colleagues from Frontier (Australia) ran several in-depth roundtable forums for regulators and water businesses in Melbourne and Sydney.

Frontier regularly advises water utilities and regulators on issues relating to regulatory reform.

For more information, please contact Marita O'Keeffe at m.okeeffe@frontier-economics.com.au or phone +61 3 9620 4488.

 

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