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Annual Report 2018-2019 Essential Services Commission of South Australia



Annual Report 2018-2019 Essential Services Commission of South Australia

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Tabled paper 1481


Tabled Papers for 13th Assembly 2016 - 2020; Tabled Papers; ParliamentNT






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ESCOSA Annual Report 20172018 25 Reporting required under any other Act or Regulation Water - third party access regime This section meets the requirements of Part 9A of the Water Industry Act 2012, in relation to the Commission reporting annually to the Minister on the work it has carried out relating to its role under the third party access regime. Part 9A of the Water Industry Act 2012 establishes a South Australian water industry third party access regime and appoints the Commission as the regulator of that access regime. The access regime provides a framework for the negotiation of access to certain water and sewerage infrastructure services, with the potential for arbitration should negotiations fail. As the regulator of the access regime, the Commission has the function of monitoring and enforcing compliance with the requirements of the regime. The Commissions role includes monitoring regulatory compliance to ensure the access provider: has a sound and effective compliance program reports non-compliances of the type required to be reported during the relevant reporting period, and addresses the impact of such non-compliance on customers and other entities. In addition, the Commission must, within the financial year ending 30 June 2019 and each five years thereafter, undertake a review of the water infrastructure and sewerage infrastructure subject to Part 9A and form a view as to whether or not the access regime should continue. The final report setting out the reviews conclusions and recommendations is to be provided to the relevant Minister. The decision to continue or terminate operation of Part 9A of the Act rests with that Minister. Monitoring outcomes The Commission was not notified of any non-compliance or access disputes in 2018-19. In 2018-19, the third party access information brochure was downloaded on five occasions from SA Waters website. SA Water did not receive any formal requests for third party access under the Water Industry Act in that year. SA Water advises they did, however, establish eleven commercial agreements for third party access outside of the access regime during the year. 2019 review of third party access regime The Commission undertook a review of the third party access regime in accordance with the Water Industry Act 2012. In November 2018, the Commission released a consultation paper outlining the access regime and its objectives, and the Commissions planned approach to the review. In March 2019, the Commission released a draft report. Following a period of public consultation, where the Commission requested evidence and views from stakeholders, the final report on the review was finalised and provided to the Minister for Environment and Water in May 2019. The Commissions findings were that the access regime provides some overall benefit (as a regulatory backstop to commercial negotiations for access) and therefore should continue for a further five years. Following the Commissions recommendation, a regulation under the Water Industry Act 2012 was made in June 2019 to extend the operation of the access regime by five years from 1 July 2019.