What it does
The Sydney Water Act 1994 is the foundational statute governing the provision of water supply, sewerage and stormwater drainage services in the greater Sydney region. At its core the Act constitutes Sydney Water Corporation as a statutory State-owned corporation (s 4, as substituted in 1998) and confers on it the principal functions of storing, supplying and treating water, providing sewerage services, operating stormwater drainage systems and disposing of wastewater (s 12(1)). These functions are exercised under one or more operating licences granted by the Governor (s 12) that must contain detailed quality, performance, environmental-impact and customer-service standards (s 14(1)).
The Act effects a clean transfer of the former Water Board’s business undertaking to the Corporation (Part 3). On the date specified in a Ministerial order, assets, rights and liabilities vest in the Corporation without further conveyance (s 7(3)(a)–(b)). Proceedings pending against the predecessor are taken to be proceedings against the Corporation (s 7(3)(c)), and references in other instruments are updated (s 7(3)(e)). Excluded undertakings may be carved out and transferred to the Ministerial Holding Corporation (s 8). The Corporation’s area of operations is initially the same as that of its predecessor but may be varied by Governor’s order after consultation with affected councils or Hunter Water (s 10(2)–(4)). Any such order must be tabled in Parliament and is subject to disallowance (s 10(6)).
A sophisticated licensing and regulatory overlay sits atop these operational powers. An operating licence may be granted for up to five years and is renewable (s 17). It must require the Corporation to maintain efficient, commercially viable systems, meet specified water-quality and service-interruption standards, compile environmental-impact indicators and prepare an operational audit (s 14(1)–(2)). The Independent Pricing and Regulatory Tribunal (the Tribunal) exercises regulatory functions including recommendations on licence conditions, monitoring compliance, and imposing monetary penalties up to $10,000 per day (capped at 30 days) or requiring other remedial action where a knowing contravention occurs (s 19A). The Minister retains parallel powers to issue notices to rectify, reprimand or impose penalties up to $1 million (s 19).