Mr. Catania questions water and wastewater charges for commercial customers in Carnarvon. The answer details pricing methodology, cost of supply, and legislative basis for charges, referencing a 2013-14 economic model, operating costs, and the Water Services (Water Corporations Charges) Regulations 2014.

AnsweredQoN 5890Legislative Assembly
Asked
10 December 2019
Portfolio
Water

QuestionView source ↗

I refer to water charges for commercial customers in
regional areas, and I ask: (a) What is the pricing methodology used for water usage
and service charges (waste water) applied to non-residential customers in
Carnarvon; (b) What is the cost of supply of water to non-residential
customers in Carnarvon, including the components and
relevant costs attached to each component; and (c) Are Water Corporation charges applied to
non-residential customers for major sewerage fixtures (such as toilets and urinals) base on policy or legislation: (i) If the charges are based on policy, please provide a copy of the policy and
relevant sections; and (ii) If the charges are based on legislation, please provide a copy of the legislation and relevant sections and sub sections?

AnswerView source ↗

Answered
12 February 2020
Responded by
Minister for Water
Response time
2 days
(a)
i. Water:
· The pricing for water usage is from a 2013-14 economic model that replicates the ERA’s regional pricing methodology and matches the regulatory costs determined by the 2012 ERA Inquiry.
The previous National Liberal Government determined that water costs were being under recovered from Carnarvon customers, and it was assessed that non-residential customers should be paying Step 15 water use charges.
ii. Wastewater: Wastewater service charges for non-residential customers are the same state-wide. All non-residential customers (including the metropolitan area) pay the same rate for service and volumetric charges.
(b)   The cost of supply to the Carnarvon Town Water Scheme for 2018-19 is made up of :
Operating costs
$M
3.3
Depreciation expense
0.7
Return on Assets
1.6
Total
5.6
(c)  (i) Not applicable
(ii) Wastewater charges raised are regulated charges, as shown in Water Services (Water Corporations Charges) Regulations 2014 . The following extracts from the legislation relate to the 2019-20 charges.
[See tabled paper no.]

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