Water and Sewerage Industry (Pricing and Related Matters) Regulations 2021
In ForceTAS
Jurisdiction
Tasmania
Act Number
74 of 2021
Collection
regulation
Plain English Summary
6/10 complexity
These regulations set the detailed rules for how regulated water and sewerage businesses set, publish and recover prices and specific charges (developer, service‑introduction, fixed and variable), how meters and strata apportionment operate, and how the Regulator must run price‑determination investigations (notice periods, hearings, evidence and confidentiality). They affect regulated entities (who calculate and recover costs and may pay investigation costs), property owners and developers (who pay or receive estimates of charges), and the Regulator (which gains procedural discretion). The stated purpose is cost‑reflective pricing; mechanically this imposes compliance and administrative costs on entities that are likely passed through to customers.
These Regulations prescribe detailed rules and procedural requirements that implement the pricing and price‑setting framework under the Water and Sewerage Industry Act 2008 (the Act). They operate primarily by (1) defining key pricing concepts and how different classes of charges are to be calculated and attributed, (2) obliging regulated entities to include specified policies and information in their price and service plans, and (3) setting the process the Regulator must follow when investigating and making price determinations.
Mechanically, the Regulations:
Commence on 22 September 2021 (regulation 2) and give the short title (regulation 1).
Provide definitions used throughout (regulation 3), including “contributed asset”, “developer charge”, “service introduction charge”, “fixed charge”, “variable charge” and “pricing zone”.
Prescribe matters to which the Regulator must have regard when making a price determination under the Act (regulation 4).
Allow price and service plans to be structured with pricing zones, but condition that on demonstrable cost differentials and an assessment that implementation costs do not outweigh benefits (regulation 5).
Require a price and service plan to include anticipated changes in prices over the life of the plan (regulation 6).
Require regulated entities to include a developer charges policy in their price and service plan, to publish it, and to provide estimable quotes and explanations to prospective developers and charge payees (regulation 7).
Permit (and set rules for) a service introduction charges policy, including payment period options and pre‑imposition estimates and explanations (regulation 8).
Add pricing principles that supplement section 68 of the Act: full cost recovery for certain legacy or section 61 contracts (regulation 10), prohibition on double recovery (regulation 11), and special treatment of contributed assets (regulation 12).
Current sections
Direct links to the current provisions in Water and Sewerage Industry (Pricing and Related Matters) Regulations 2021.
connection charge means a charge calculated by reference to the costs that are associated with installing assets that are dedicated to the provision of a regulated service to a particular customer;
contributed asset means an asset –
(a) that has been –
(i) transferred, granted, donated, or given by way of a gift, to a regulated entity by a person; or
(ii) constructed by a regulated entity using funds provided by a person –
under a transaction, or arrangement, by which the person does not receive an asset, item, money, or money’s worth, in return; and
(b) in relation to which there is no financial interest held by any person, other than the regulated entity, in any part of any of the assets of the entity –
but does not include an asset that was, before 1 July 2011, transferred to the regulated entity under section 41 of the Water and Sewerage Corporations Act 2008 ;
developer charge means a charge referred to in regulation 18 ;
fixed charge means a charge, which is recurrent, for the provision of a regulated service to a customer, but does not include a variable charge for the service;
price determination investigation, in respect of a regulated service, means an investigation for the purpose of gathering information that may be required by the Regulator before making a price determination in respect of the regulated service or a variation of such a price determination;
pricing zone means an area of land in respect of which prices, which will apply for the provision of a regulated service, may vary from the prices charged in respect of another pricing zone;
service introduction charge means a charge, in respect of a property, that relates to the installation, alteration or utilisation of assets by a regulated entity so as to enable the provision, by the entity, of a regulated service to the property but does not include –
variable charge means a charge, for a regulated service, that varies according to the volume of the water delivered to, or sewage removed from, the property to which the charge relates.
Part 2
Matters in Respect of Price Determinations
Part 2 Matters in Respect of Price Determinations
Division 1
General
Division 1 General
4
Matters to which Regulator is to have regard
4 Matters to which Regulator is to have regard
The provisions of this Part are prescribed, for the purposes of section 66(2)(f) of the Act, as matters to which the Regulator is to have regard in making a price determination under that section.
5
Pricing zones
5 Pricing zones
(1) A price determination may specify that a price and service plan is to include, or is not to include, pricing zones.
(2) A price determination may only specify that a price and service plan is to include pricing zones if there are significant differences in the costs of providing the regulated service to different areas of land within the area to which the regulated service may be provided by the regulated entity.
(3) A price determination is not to require that a price and service plan is to include pricing zones if, in the opinion of the Regulator, the costs of implementing such zones would outweigh the benefits of doing so.
(4) Prices charged, in relation to the provision of a regulated service by a regulated entity in respect of properties within a pricing zone, are to reflect, so far as is commercially and technically practicable, the costs of providing the regulated service to the properties.
6
Estimates of changes of prices over life of plan
6 Estimates of changes of prices over life of plan
A price determination is to require a price and service plan to include anticipated changes, over time, of any prices specified in the plan.
Division 2
Charges policies
Division 2 Charges policies
7
Developer charges policy
7 Developer charges policy
(1) A price determination is to require a regulated entity’s price and service plan to include a policy in respect of developer charges (a developer charges policy) that complies with these regulations.
(2) A regulated entity’s developer charges policy is to specify the method by which the amount of a developer charge will be calculated by the entity.
(3) A regulated entity must ensure that the entity’s developer charges policy includes information that enables a person to calculate the amount of the developer charge estimated to be payable in respect of a proposed new development on a property in a region or location.
(4) A regulated entity’s developer charges policy must be published on the entity’s website for the period for which the policy is to apply.
(5) A regulated entity’s developer charges policy is to require the entity to provide an estimate of the amount of the developer charge that is to apply, in respect of a property, to a person who –
(a) proposes a new development in respect of the property; and
(b) provides, to the entity, sufficient information as to the proposals for the new development to enable an estimate to be determined; and
(c) requests that an estimate be provided to the person.
(6) A regulated entity’s developer charges policy is to require the entity to provide information, as to how the amount of a charge has been determined by the entity, to a person –
(a) on whom a developer charge is imposed; and
(b) who requests the information to be provided to the person.
8
Service introduction charges policy
8 Service introduction charges policy
(1) A price determination may require a price and service plan for a regulated entity to include a policy in respect of service introduction charges (a service introduction charges policy) that complies with these regulations.
(2) A regulated entity’s service introduction charges policy is to specify how service introduction charges are to be determined by the entity.
(3) A regulated entity’s service introduction charges policy is to permit an owner of a property to which a service introduction charge relates to pay the charge –
(a) over a period of not less than 12 months; or
(b) at the owner’s request, over a period of less than 12 months.
(4) A regulated entity’s service introduction charges policy is to require the entity to provide to a person, before a service introduction charge is imposed on the person, an estimate of the amount of that charge that may be imposed on the person.
(5) A regulated entity’s service introduction charges policy is to require the entity to provide, to a person on whom a service introduction charge is imposed, information as to how the amount of the charge has been determined by the regulated entity.
Part 3
Pricing Principles
Part 3 Pricing Principles
9
Additional pricing principles
9 Additional pricing principles
The provisions in this Part specify pricing principles that apply, in addition to the pricing principles set out in section 68 of the Act, in relation to prices for the provision of a regulated service.
10
Full cost recovery from certain contracts
10 Full cost recovery from certain contracts
(1) Prices for the provision of a regulated service by a regulated entity to a customer, under a relevant contract, are to allow for the recovery of the full cost of providing the service to the customer.
(2) For the purposes of subregulation (1) , a relevant contract means –
(a) a contract, other than a customer contract, that was in force immediately before 22 September 2011 and is still in force; or
(b) a contract entered into pursuant to section 61 of the Act.
11
No double-dipping
11 No double-dipping
A cost of providing a regulated service to a customer must not be included in a charge imposed on the customer if the cost has been, or is to be, recouped by the imposition on the customer of another charge.
12
Contributed assets
12 Contributed assets
(1) Prices for the provision of a regulated service are not to be set so as to allow for either of the following:
(a) a rate of return in respect of contributed assets;
(b) depreciation of contributed assets.
(2) Despite subregulation (1) , prices for the provision of a regulated service are to be set so as to allow for the recovery of expenses incurred by a regulated entity in respect of the operation or maintenance of a contributed asset.
(3) Subregulation (1) does not apply in relation to a contributed asset of a regulated entity that has been –
(a) transferred, granted, or given by way of a gift, to the regulated entity by the Crown or an emanation of the Crown, after 22 September 2011; or
(b) constructed by the regulated entity using funds provided by the Crown or an emanation of the Crown after 22 September 2011 –
if the arrangement or transaction under which the asset became an asset of the entity specifies that the return on the assets is to be not more than a rate that reflects the regulatory and commercial risks involved in providing the regulated service.
13
Service introduction charges
13 Service introduction charges
(1) A service introduction charge must not be imposed on a person in relation to a property unless the person is an owner of the property.
(2) The amount of a service introduction charge imposed on a person in relation to a property is not to be more than is necessary to recoup the reasonable costs incurred by a regulated entity in installing, altering or utilising its assets so as to be able to provide a regulated service to the property.
(3) For the purposes of subregulation (2) , the reasonable costs incurred by a regulated entity are –
(a) the costs directly attributable to installing, altering or utilising its assets in a reasonably cost-efficient manner so as to be able to provide a regulated service to the property; and
(b) to be calculated so as to reflect variations in the costs of providing the regulated service to different locations or regions.
(4) A service introduction charge may be imposed on a person in addition to a fixed charge.
14
Fixed charges
14 Fixed charges
(1) A fixed charge for a regulated service is to reflect the costs to the regulated entity that –
(a) are reasonably attributable to providing the service to the property to which the charge relates; and
(b) are not recouped through a developer charge or service introduction charge.
(2) A fixed charge for a regulated service in relation to a property must not be imposed on a person in relation to residential premises situated on the property unless the person is an owner of the residential premises.
15
Imposition of variable charges
15 Imposition of variable charges
(1) A regulated entity must charge a variable charge for a water service.
(2) A regulated entity may, but is not required to, charge a variable charge for a sewerage service.
(3) A variable charge that is imposed for a regulated service must be charged in respect of each unit of water delivered to, or sewage removed from, the property to which the charge relates.
(4) The rate of a variable charge to be charged by a regulated entity must not be less than the cost of delivering water to, or removing sewage from, the property to which the charge relates.
(5) A variable charge for a regulated service is to reflect the costs, to the regulated entity, that are reasonably attributable to the volume of water delivered to, or sewage remove from, the property to which the charge relates.
(6) Despite subregulation (5) , the rate of variable charge to be charged by a regulated entity in respect of a regulated service may be greater than the cost of delivering water to, or removing sewage from, the property, if –
(a) there are constraints on the amount of water available to be provided by the entity or the capacity of water treatment plants or sewage treatment plants; or
(b) there are constraints on the capacity of the regulated entity’s infrastructure; or
(c) it is desirable to do so to reduce demand for the supply of water, or removal of sewage, for the relevant purpose; or
(d) the Regulator is of the opinion that the rate should be greater than the cost so as to enable the regulated entity to recoup any costs that may not otherwise be recouped by the regulated entity.
(7) For the purposes of subregulation (6)(c) , the relevant purpose for reducing demand for the supply of water, or removal of sewage, is so as to enable the expenditure in relation to assets that would otherwise be required to meet increased demand for the service to be deferred so that expenditure, in relation to assets, for the purposes of improving health, public safety or the environment may occur instead.
16
When variable charges may not be imposed
16 When variable charges may not be imposed
(1) A variable charge for a water service must not be imposed, in relation to residential premises situated on a property, on a person other than the owner of the residential premises.
(2) All or part of an amount of a variable charge, for a water service in relation to property that is common property, must not be imposed on a person, other than a body corporate formed under the Strata Titles Act 1998 , unless –
(a) the person is the owner of a lot that forms part of the scheme to which the common property relates; and
(b) the amount of the charge imposed on the person consists of the proportion, of the variable charge in relation to the common property, determined by apportioning the charge –
(i) on the basis of the general unit entitlement of the lot; or
(ii) if there is in respect of the lot a special unit entitlement for liability for charges for water use, on the basis of the special unit entitlement.
17
Metering of amounts of variable charges
17 Metering of amounts of variable charges
(1) If there is, on the area of land to which a scheme relates, only one meter in respect of a water service provided to the land, a regulated entity must not impose on a person, other than a body corporate formed under the Strata Titles Act 1998 , a variable charge for the water service, unless –
(a) the person is the owner of a lot that forms part of the scheme; and
(b) the amount of the charge imposed on the person consists of the proportion, of the variable charge in relation to the area of land, determined by apportioning the charge –
(i) on the basis of the general unit entitlement of the lot; or
(ii) if there is in respect of the lot a special unit entitlement for liability for charges for water use, on the basis of the special unit entitlement.
(2) A variable charge for a water service, or a sewerage service, provided to a property must, if a meter in respect of the service is installed on the property and is working accurately, be calculated having regard to the records of the meter.
(3) If a water meter is not working accurately, registers incorrectly or is removed from a property for any reason, a regulated entity may, for the purposes of determining the amount of a variable charge to be imposed in respect of the property, estimate the amount of water delivered to the property for each day during a period –
(a) based on the average amount of water supplied to the property under similar conditions on each day in another period; or
(b) based on the average amount of water supplied to the property on each day in another period after the meter is repaired or replaced; or
(c) by applying a correction factor, if the meter is found to have a consistent error in registering the amount of water being delivered.
18
Developer charges
18 Developer charges
A regulated entity may impose, in respect of a property to which a proposed new development relates, a charge that relates to the installation, alteration or utilisation of assets by the regulated entity so as to enable the provision by the entity of regulated services for the purposes of the new development.
19
Amount of developer charges
19 Amount of developer charges
(1) The amount of a developer charge to be imposed by a regulated entity in respect of a property to which a proposed new development relates is to be sufficient to, but no higher than is necessary to, recoup the reasonable costs incurred by the entity in respect of the proposed new development.
(2) For the purposes of subregulation (1) , the reasonable costs incurred by a regulated entity in respect of a proposed new development –
(a) are those costs directly attributable to installing, altering, or utilising assets, in a reasonably cost-efficient manner, so as to be able to provide a regulated service in respect of the proposed new development; and
(b) may reflect variations in the costs of servicing different locations or regions; and
(c) may include an excess capacity cost; and
(d) are not to include an amount attributable to increased external demand by existing customers.
(3) For the purposes of subregulation (2)(c) , an excess capacity cost is an amount that is –
(a) attributable to –
(i) the cost of installing, before the proposed new development came into existence, assets which had an excess capacity such that regulated services are able to be provided in respect of the new development without altering the assets; and
(ii) the cost of altering or utilising assets that were installed before the proposed new development came into existence so that regulated services are able to be provided in respect of the new development without installing new assets; and
(b) proportional to the amount of that excess capacity that is to be utilised in providing the regulated services in respect of that new development.
(4) For the purposes of subregulation (2)(d) , an amount is attributable to increased external demand by existing customers if it is attributable to installing, altering, or utilising assets so as to meet increased demand, for the regulated service, that is –
(a) from a connection, or connections, made before the new development to which the charge relates was completed; and
(b) greater than anticipated in relation to that connection, or those connections, at the time of the installation, alteration, or utilisation of the assets.
(5) The amount of a developer charge to be imposed in respect of a property by a regulated entity may, if the regulated entity agrees, be reduced by an amount that –
(a) is equivalent to the value of a contributed asset to be provided to the regulated entity by a person in respect of the property; and
(b) would have otherwise constituted all or part of the amount of the developer charge.
(6) A regulated entity must not unreasonably refuse to agree under subregulation (5) to a reduction in the amount of a developer charge.
20
Miscellaneous fees and charges
20 Miscellaneous fees and charges
A price determination is to require a price and service plan to include all fees and charges that may be charged by a regulated entity that are not fixed charges, variable charges, developer charges or service introduction charges.
Part 4
Price Determination Investigations
Part 4 Price Determination Investigations
21
Price determination investigations
21 Price determination investigations
(1) In this regulation –
excluded amount means –
(a) an income tax, income tax equivalent, fringe benefits tax or capital gains tax; or
(b) a tax, charge, levy, duty or imposition that replaces a tax referred to in paragraph (a) ; or
(c) a fee or charge payable under the Act; or
(d) an amount payable under a contract; or
(e) a fine or other penalty;
relevant tax means a tax, charge, levy, duty, or imposition, other than an excluded amount, that –
(a) is directly attributable to the provision of a regulated service; and
(b) in the opinion of the Regulator, is not normally absorbed by a business in a fully competitive market;
tax event, in relation to a price determination, means –
(a) the imposition on a regulated entity of an obligation to pay an amount which –
(i) it was not obligated to pay immediately before the price determination was made; and
(ii) arises from the imposition of a relevant tax; or
(b) a change in the manner in which, or the rate at which, a relevant tax is calculated, which results in a change in an amount that a regulated entity is required to pay (whether directly or by reason of an adjustment under a contract of an amount payable under that contract) in respect of relevant taxes, from the amount that the entity was so required to pay immediately before the price determination was made; or
(c) the removal of a relevant tax, which removal results in a change in an amount that a regulated entity is required to pay (whether directly or by reason of an adjustment under a contract of an amount payable under that contract) from the amount that the entity was so required to pay immediately before the price determination was made.
(2) The Regulator must conduct a price determination investigation before making, or varying, a price determination in respect of a regulated service.
(3) Subregulation (2) does not apply in relation to a variation, of a price determination, that varies prices specified in the price determination if that variation is, in the opinion of the Regulator, required because there has been a material change in the costs incurred by a regulated entity as a result of –
(a) complying with new or additional legislative requirements; or
(b) a tax event after the price determination that is to be varied is made.
22
Notice of investigation
22 Notice of investigation
(1) At least 11 months before the expiration of a price determination in respect of a regulated service, the Regulator must give the relevant notice of the Regulator’s intention to make a price determination after conducting a price determination investigation.
(2) At least 6 months before the expiration of an interim price order in respect of a regulated service, the Regulator must give the relevant notice of the Regulator’s intention to make a price determination after conducting a price determination investigation.
(3) At least 2 months before varying a price determination in respect of a regulated service, the Regulator must give the relevant notice of the Regulator’s intention to vary the price determination after conducting a price determination investigation.
(5) The relevant notice in respect of a price determination investigation is given by the regulator under subregulation (1) or (2) if a notice containing the relevant matters is –
(a) given to the Treasurer; and
(b) given to each regulated entity that provides the regulated service to which the investigation is to relate; and
(c) published in such newspapers circulating in Tasmania, or in such other manner, as the Regulator thinks fit; and
(d) set out on a website of the Regulator for a period of not less than 60 days.
(6) A notice for the purpose of this regulation in relation to a price determination investigation is to specify –
(a) the regulated service to which the investigation is to relate; and
(b) the purpose of the investigation; and
(c) the day by which the price determination, or variation of a price determination, to which the investigation relates is to be made; and
(d) the proposed duration of the regulatory period of the price and service plan in respect of the regulated service; and
(e) the day by which the Regulator is to make available for consideration by the public, under section 66 of the Act, the proposed price determination, or proposed variation of a price determination, in respect of the regulated service; and
(f) that a person may make a submission to the Regulator about a matter, in a form, and within a period, specified in the notice.
(7) A notice for the purpose of this regulation may specify the matters that the Regulator considers would be desirable to be addressed in submissions to the Regulator.
(8) The Regulator may, by giving notice to the persons, and in the manner, set out in subregulation (5) , amend any of the details specified in a notice given under this regulation.
23
Conduct of price determination investigations
23 Conduct of price determination investigations
(1) Subject to these regulations, the Regulator may do anything necessary or convenient for the purpose of conducting a price determination investigation.
(2) Subject to these regulations, the Regulator may conduct a price determination investigation in the manner that the Regulator thinks appropriate.
(3) Without limiting the generality of subregulation (2) , the Regulator may, at the Regulator’s discretion, do one or more of the following:
(a) consult with any person;
(b) hold seminars;
(c) hold hearings;
(d) receive written and oral submissions.
(4) In conducting a price determination investigation, the Regulator is not bound by the rules of evidence but may be informed of any matter in any manner that the Regulator considers appropriate.
24
Hearings
24 Hearings
(1) The Regulator must, before holding a hearing for the purposes of a price determination investigation, give at least 14 days’ notice of the hearing, published in one or more daily newspapers circulating in Tasmania.
(2) A notice of a hearing for the purpose of subregulation (1) is to specify –
(a) the purpose of the hearing; and
(b) the time and place at which the hearing is to be held.
(3) A hearing referred to in subregulation (1) is to be held in public.
(4) Despite subregulation (3) , the Regulator may, if satisfied that it would be in the public interest to do so, or that evidence to be presented is, or is likely to be, of a confidential or commercially sensitive nature –
(a) direct that a hearing, or part of a hearing, is to take place in private and give directions as to the persons who may be present at the hearing; and
(b) give directions prohibiting or restricting the publication of evidence given, or documents produced, at the hearing.
(5) A person must not contravene a direction given under subregulation (4) .
Penalty: Fine not exceeding 100 penalty units.
(6) The following information is taken to be classified by the Regulator as confidential and is not liable to disclosure under the Right to Information Act 2009 :
(a) evidence given, or documents produced, at a hearing to which a direction under subregulation (4)(b) relates;
(b) records of the giving or production of evidence, or documents, to which paragraph (a) relates.
(7) For the avoidance of doubt, a reference in this Part –
(a) to a hearing includes a hearing held electronically; and
(b) to attending a hearing includes attending a hearing electronically; and
(c) to attending before the Regulator includes attending before the Regulator electronically.
25
Requiring persons to give evidence or provide documents
25 Requiring persons to give evidence or provide documents
(1) For the purposes of a price determination investigation, the Regulator may, by written notice to a person, require the person to do any one or more of the following:
(a) attend before the Regulator and answer questions which are, in the opinion of the Regulator, relevant to the investigation;
(b) provide to the Regulator, in the manner specified in the notice, a document specified in the notice that is in the person’s possession or control and that, in the opinion of the Regulator, is relevant to the investigation;
(c) provide to the Regulator, in the manner specified in the notice, any other information, specified in the notice, that, in the opinion of the Regulator, is relevant to the investigation.
(2) The Regulator may not impose, under subregulation (1) , a requirement on a person –
(a) to answer a question, or provide information, if to do so would require the person to divulge information contained in, or relating to, a Cabinet record; or
(b) to provide a Cabinet record to the Regulator.
(3) A person who attends before the Regulator pursuant to a requirement imposed under subregulation (1) may, at the Regulator’s discretion, be paid by the Regulator the reasonable allowances and expenses determined by the Regulator.
26
Use of documents and other information
26 Use of documents and other information
(1) The Regulator –
(a) may examine, take possession of, make copies of, and take extracts from, any document provided in accordance with a requirement imposed under regulation 25(1)(b) ; and
(b) may retain that document for as long as is necessary for the purposes of a price determination investigation.
(2) The Regulator must allow a person (an interested person), at any reasonable time, to inspect, make a copy of, or take an extract from, a document provided in accordance with a requirement imposed under regulation 25(1)(b) , if –
(a) the document is the only copy of, or an original of, a document; and
(b) the Regulator has previously advised the owner of the document, or the person who provided the document, that the Regulator intends to allow an interested person to inspect, copy, or take an extract from the document.
(3) The Regulator may give directions prohibiting or restricting the publication of –
(a) any answer, document, or other information provided to the Regulator under a requirement imposed under regulation 25(1) ; or
(b) a part of any such answer, document, or other information; or
(c) a copy of, or extract from, any such answer, document, other information or part.
(4) A person must not contravene a direction given under subregulation (3) .
Penalty: Fine not exceeding 100 penalty units.
(5) The following information is taken to be classified by the Regulator as confidential and is not liable to disclosure under the Right to Information Act 2009 :
(a) an answer, document, or other information given in accordance with a requirement imposed under regulation 25(1) or part of any such answer, document, or other information given;
(b) records relating to the production of any such answer, document, other information or part.
(6) The Regulator may, as the Regulator thinks appropriate, publish to any person –
(a) any answer, document, or other information given in accordance with a requirement imposed under regulation 25(1) ; or
(b) part of any such answer, document, or other information given.
(7) Despite subregulation (6) , the Regulator may not publish an answer, document, or other information given in accordance with a requirement imposed under regulation 25(1) , or part of any such answer, document, or other information so given, if –
(a) the publication to that person would contravene a direction given under subregulation (3) ; or
(b) the answer, document, other information or part contains information that is exempt information under the Right to Information Act 2009 ; or
(c) the answer, document, other information or part consists of, or contains, information that could damage the commercial interests of a person, and the Regulator is of the opinion that the damage or possible damage to that person outweighs the public benefit from its publication.
27
Proposed price determination
27 Proposed price determination
(1) The Regulator must, before making a price determination under section 66 of the Act in respect of a regulated service to which a price determination investigation relates –
(a) prepare a proposed price determination in respect of the regulated service; and
(b) consider all submissions received by the Regulator within the period specified under subregulation (4) in the covering notice in relation to the proposed price determination.
(2) The Regulator is to –
(a) provide a copy of a proposed price determination to the Treasurer together with a covering notice; and
(b) provide a copy of a proposed price determination to each regulated entity to which the proposed price determination relates, together with a covering notice.
(3) A proposed price determination is to include a statement of the purpose of, and the reasons for the decisions contained in, the proposed price determination.
(4) The covering notice referred to in subregulation (2) is to invite persons to make submissions to the Regulator, at an address specified in the proposed price determination, in relation to the proposed price determination within the period specified in the notice.
28
Cost of price determination in investigation
28 Cost of price determination in investigation
(1) The Regulator may, by notice served on a regulated entity that provides a regulated service to which a price determination investigation relates, require the entity to pay the costs of the Regulator specified in the notice.
(2) The costs that may be specified in a notice under subregulation (1) are –
(a) all or part of the expenses reasonably incurred by the Regulator in conducting, and reporting on, the price determination investigation; and
(b) all or part of any expenses incurred in making a price determination available to the public after the price determination investigation takes place.
(3) A regulated entity is liable for the costs specified in a notice given to the entity under subregulation (1) .
(4) The Regulator may recover in a court of competent jurisdiction, as a debt due and payable, an amount specified in a notice under subregulation (1) .
Part 5
Miscellaneous
Part 5 Miscellaneous
29
Price determination does not authorise breach of contract
29 Price determination does not authorise breach of contract
Nothing in a price determination is to be taken to permit a regulated entity that has a contract with a customer that –
(a) is in force immediately after the price determination is made; and
(b) was in force before that determination is made –
to charge prices in relation to the provision of a regulated service, or to set terms or conditions for the provision of that service, that are inconsistent with the prices, and other terms and conditions, forming part of the contract.
30
Strata title bodies corporate to give notice of creation of, or change in, entitlements
30 Strata title bodies corporate to give notice of creation of, or change in, entitlements
A body corporate in respect of a scheme must, within 30 days after –
(a) a change in the general unit entitlement in relation to the scheme; or
(b) the creation of, or a change in, a special unit entitlement, in relation to the scheme, which relates to liability for charges for water use –
give written notice of the change or creation to a regulated entity whose infrastructure is connected to the property on which the scheme is situated.
These regulations are administered in the Department of Treasury and Finance.
Source text: opening excerpt
Sourced from Tasmanian Legislation Online (legislation.tas.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
1 Short title
1 Short title
These regulations may be cited as the Water and Sewerage Industry (Pricing and Related Matters) Regulations 2021 .
2 Commencement
2 Commencement
These regulations take effect on 22 September 2021.
3 Interpretation
3 Interpretation
In these regulations –
Act means the Water and Sewerage Industry Act 2008 ;
asset means water infrastructure or sewerage infrastructure;
common property has the same meaning as it has in the Strata Titles Act 1998 ;
connection charge means a charge calculated by reference to the costs that are associated with installing assets that are dedicated to the provision of a regulated service to a particular customer;
contributed asset means an asset –
(a) that has been –
(i) transferred, granted, donated, or given by way of a gift, to a regulated entity by a person; or
(ii) constructed by a regulated entity using funds provided by a person –
under a transaction, or arrangement, by which the person does not receive an asset, item, money, or money’s worth, in return; and
(b) in relation to which there is no financial interest held by any person, other than the regulated entity, in any part of any of the assets of the entity –
but does not include an asset that was, before 1 July 2011, transferred to the regulated entity under section 41 of the Water and Sewerage Corporations Act 2008 ;
developer charge means a charge referred to in ;
Set limits on the imposition and calculation of service introduction charges (regulation 13), fixed charges (regulation 14), variable charges (regulation 15), and detailed rules for who may be charged and how metering affects apportionment, particularly in strata schemes (regulations 16-17).
Authorise developer charges and set principles for their amount, including recognition of excess capacity costs and rules excluding amounts attributable to unanticipated increased demand from existing customers (regulations 18-19).
Require price and service plans to disclose miscellaneous fees (regulation 20).
Prescribe the process for price determination investigations (Part 4): definitions of tax events and excluded amounts (regulation 21), mandatory investigations before making or varying determinations (subject to limited exceptions in reg 21(3)), notice periods and public consultation timeframes (regulation 22), investigative powers, hearings and confidentiality (regulations 23-26), preparation and publication of a proposed price determination and covering notice (regulation 27), and the Regulator’s power to recover investigation costs from regulated entities (regulation 28).
Clarify that a price determination does not permit a regulated entity to act inconsistently with existing customer contracts (regulation 29).
Impose a notification obligation on strata bodies corporate where unit entitlements change, with a small fine for non‑compliance (regulation 30).
The Regulations therefore operate both substantively (how particular charges are calculated and attributed) and procedurally (how the Regulator must consult, investigate, and treat confidential material). They allocate information‑provision duties to regulated entities and investigative, evidentiary and publication powers to the Regulator, and they create bounded protections for customers, owners and strata bodies in the way charges are imposed and apportioned.
Main concepts
The Regulations define and operationalise a set of interlocking concepts central to water and sewerage pricing.
Price and service plan: a regulated entity’s public plan of prices and service commitments, to which the Regulations attach requirements (eg, inclusion of developer charges policy, service introduction charges policy, and anticipated price changes: regs 6, 7, 8).
Developer charge (regs 3, 18-19): a charge that a regulated entity may impose to enable provision of regulated services for a proposed new development. The Regulations require a developer charges policy (reg 7) describing the calculation method, public availability, and provision of estimates and explanations on request. The amount must be sufficient but no higher than necessary to recoup reasonable costs attributable to the development (reg 19(1)-(2)). Reasonable costs may include excess capacity costs (reg 19(2)(c); definition and proportionality in reg 19(3)) but must exclude amounts attributable to increased external demand from existing customers (reg 19(2)(d), (4)). Regulated entities may accept contributed assets in lieu of all or part of a developer charge (reg 19(5)) and must not unreasonably refuse such agreements (reg 19(6)).
Service introduction charge (regs 3, 8, 13): a charge in respect of a property relating to installation, alteration or utilisation of assets to enable the entity to provide a regulated service to that property, distinct from connection, fixed or developer charges (reg 3 definition). If required by a price determination, regulated entities must specify how such charges are determined (reg 8(2)), provide pre‑imposition estimates (reg 8(4)), provide explanations on request (reg 8(5)), and allow payment over not less than 12 months unless the owner requests a shorter period (reg 8(3)). The charge may only be imposed on an owner and must not exceed the reasonable costs directly attributable to installing/altering/utilising assets, calculated with regard to cost‑efficient practices and location variations (reg 13).
Fixed charge and variable charge (regs 3, 14-17): fixed charges are recurrent non‑volume charges and must reflect costs reasonably attributable to providing the service to the property not already recouped via developer or service introduction charges (reg 14). For residential premises, fixed charges may be imposed only on owners (reg 14(2)). Variable charges must be charged for water services (reg 15(1)), and may be charged for sewerage services (reg 15(2)). The variable charge must be per unit of water delivered or sewage removed (reg 15(3)), and the rate must not be less than the cost of delivering or removing (reg 15(4)). Variable charges generally should reflect volume‑attributable costs (reg 15(5)), but can exceed cost for specified reasons: supply/capacity constraints, infrastructure capacity constraints, demand‑reduction objectives to defer capital expenditure in favour of health/public safety/environmental expenditure, or to recoup otherwise unrecoverable costs in the Regulator’s opinion (reg 15(6)(a)-(d)), with reg 15(7) explaining the public‑interest trade‑off for demand reduction.
Contributed asset (reg 3; reg 12): an asset transferred, granted, donated or constructed by a person for which no financial return is received, and over which no other person has a financial interest. The Regulations prohibit pricing that yields a rate of return or depreciation for contributed assets (reg 12(1)), but permit recovery of operating and maintenance expenses for those assets (reg 12(2)). An exception permits return on contributed assets transferred or constructed by Crown/emanation of the Crown after 22 Sep 2011 if the transaction specifies a return reflecting regulatory and commercial risks (reg 12(3)).
Pricing zone (reg 3, 5): an area where prices and services may differ. A price determination can include pricing zones only where there are significant cost differences, and the Regulator may refuse if implementation costs outweigh benefits; prices in a zone must, so far as commercially/technically practicable, reflect the costs of provision to properties in that zone (regulation 5).
Price determination investigation and tax event definitions (reg 21): the Regulator must conduct an investigation before making or varying a price determination except where a variation responds to a material cost change from new legislative requirements or a tax event (reg 21(2-3)). The regulations define “excluded amount” (eg, income tax, contracts, fines) and “relevant tax” and specify what constitutes a “tax event” for price adjustment purposes (reg 21(1)).
Taken together, these concepts structure who bears which costs, when an entity may recover capital‑like costs through developer or service introduction charges versus recurring charges, and how the Regulator must balance cost‑reflectivity against administrative feasibility and public interest considerations such as demand management and protection of existing customers.
Who it affects
The Regulations allocate rights, obligations and informational duties across several categories of actors. Below is a concise mapping of who pays, who decides, and who must act.
Regulated entities: primary addressees. They must prepare price and service plans that include required policies (developer charges policy per reg 7, and service introduction charges policy where required per reg 8), publish those policies online (reg 7(4)), provide estimates of charges to prospective developers or affected owners (regs 7(5), 8(4)), maintain methods to calculate charges and provide explanatory information to those charged (regs 7(2),7(6),8(5)). They must impose variable charges for water services (reg 15(1)), ensure those charges at least cover marginal costs (reg 15(4)), and must follow constraints on fixed and service introduction charges (regs 13-14). They also must cooperate with price determination investigations, including responding to notices to provide documents or attend (reg 25).
Customers and owners: recipients of regulated services and direct payers of most charges. The Regulations explicitly restrict some charges to owners: service introduction charges may only be imposed on an owner (reg 13(1)); fixed charges for residential premises may only be imposed on owners (reg 14(2)); variable charges for residential water must be charged only to the owner (reg 16(1)). Owners of properties subject to charges are entitled to receive pre‑imposition estimates and explanations (regs 7(5),7(6),8(4)-(5)). Where a property forms part of a strata scheme, rules set apportionment bases (general unit entitlement or special unit entitlement) and allocate charging rights/obligations between the body corporate and lot owners (regs 16(2),17(1)).
Developers and persons proposing new developments: payers of developer charges where imposed (regs 18-19). They are entitled to estimates and to rely on published policies (reg 7(3)-(5)). A regulated entity must not unreasonably refuse to accept a contributed asset in satisfaction of part or all of a developer charge (reg 19(6)).
Bodies corporate under the Strata Titles Act 1998: the body corporate is the default addressee for some charges relating to common property; changes in unit entitlements must be notified to the regulated entity within 30 days (reg 30), failing which a fine of up to 20 penalty units applies. Owners may be charged apportioned variable charges where apportionment rules apply (reg 16(2),17(1)). A single meter on a scheme imposes apportionment rules for who can be charged (reg 17(1)).
The Regulator: empowered to conduct price determination investigations, require attendance and documents (reg 25), hold public or private hearings (reg 24), classify and protect confidential information (regs 24(4)-(6),26(3)-(5)), publish proposed determinations and supporting reasons (reg 27), and require regulated entities to pay investigation costs (reg 28). The Regulator also decides whether pricing zones should be used (reg 5) and whether price variations are required urgently due to tax events or legislative requirements (reg 21(3)).
The Treasurer: recipient of notices under regulation 22(5) and a consultation addressee for proposed price determinations (reg 27(2)(a)).
Who pays , generally owners for service introduction and residential fixed/variable charges; developers for developer charges; regulated entities for a proportion of Regulator investigation costs if the Regulator issues a recovering notice (reg 28). Who decides , the Regulator decides price determinations, whether to include pricing zones, whether to hold hearings in public or private (with direction power), and whether to recover investigation costs. What behaviour changes , regulated entities must formalise charging policies, publish them, provide estimates and breakdowns, and adopt consistent accounting/pricing treatment (eg, not recovering return/depreciation on contributed assets), and must be prepared to supply documents and attend hearings.
Regulatory reach therefore covers pricing design, information flows between regulated entities and customers/developers, evidentiary obligations during investigations, and procedural protections for confidentiality and contract stability.
Key duties and rights
This Part summarises principal duties imposed by the Regulations and the principal rights or discretions they create, with direct references to the controlling provisions.
Duties of regulated entities
Inclusion and publication duties: a regulated entity must include a developer charges policy in its price and service plan (reg 7(1)), specify the method for calculating developer charges (reg 7(2)), and publish the developer charges policy on its website for the policy period (reg 7(4)). Where a service introduction charges policy is required by a price determination, the entity must specify how such charges are determined (reg 8(2)), permit owner payment over not less than 12 months (reg 8(3)), provide pre‑imposition estimates (reg 8(4)), and explain charge calculations on request (reg 8(5)).
Charging duties: a service introduction charge may only be imposed on an owner and must be no more than necessary to recoup reasonable costs directly attributable to installation/alteration/utilisation of assets, accounting for cost‑efficiency and regional variations (reg 13(1)-(3)). Fixed charges must reflect costs reasonably attributable to providing the service not recouped elsewhere (reg 14(1)). Fixed charges for residential premises may only be imposed on the owner (reg 14(2)). A regulated entity must charge a variable charge for a water service (reg 15(1)); variable charges must be per unit and not less than the cost of delivering water or removing sewage (regs 15(3)-(4)), and generally reflect volume‑attributable costs (reg 15(5)). Variable charges may exceed cost in specified circumstances (reg 15(6)). No double recovery is permitted: a cost must not be included in a charge if it has been or will be recouped by another charge (reg 11).
Treatment of contributed assets: prices must not be set to allow a rate of return or depreciation on contributed assets, but operation and maintenance expenses for contributed assets may be recovered (reg 12(1)-(2)). A specified Crown‑transferred contributed asset exception exists (reg 12(3)).
Developer charge specifics: developer charges must only recoup reasonable costs directly attributable to servicing the development (reg 19(1)-(2)). “Excess capacity costs” can be included but must be proportional (reg 19(3)). Costs attributable to unanticipated increased external demand from existing customers are excluded (reg 19(2)(d),19(4)). Entities must not unreasonably refuse contributed assets in reduction of developer charges (reg 19(5)-(6)).
Cooperation with investigations: a regulated entity must respond to a Regulator notice to pay investigation costs (reg 28(1)-(3)) and to notices to provide documents or attend (reg 25(1)). Documents provided may be examined, taken into possession and retained by the Regulator (reg 26(1)).
Rights, discretions and procedural obligations of the Regulator
Investigation duty: the Regulator must conduct a price determination investigation before making or varying a price determination unless the variation responds to material cost changes from new legislative requirements or a tax event (reg 21(2)-(3)).
Notice and consultation obligations: the Regulator must give preliminary notices prior to the expiry of a price determination or interim price order (reg 22(1)-(3)), publish notices and proposed determinations for public submissions (reg 22(5)-(6), reg 27(1)-(4)), and may identify matters desirable to be addressed in submissions (reg 22(7)).
Investigative powers: the Regulator may, by written notice, require persons to attend and answer questions and to supply documents and other information relevant to the investigation (reg 25(1)). The Regulator is not bound by the rules of evidence and may conduct investigations in the manner it considers appropriate (reg 23(2)-(4)).
Confidentiality directions and classification: the Regulator may direct hearings or parts of hearings be held in private and prohibit or restrict publication of evidence or documents if public interest or commercial sensitivity justifies it (reg 24(4)). A person contravening such directions commits an offence subject to a fine (reg 24(5)). The Regulations also classify certain evidence/documents supplied in response to investigatory requirements as confidential and not liable to disclosure under the Right to Information Act 2009 (regs 24(6),26(5)).
Cost recovery: the Regulator may require regulated entities to pay all or part of the costs reasonably incurred in conducting and reporting on an investigation, and recover those amounts as a debt in court (reg 28(1)-(4)).
Rights and protections for customers, developers and owners
Information and estimate rights: prospective developers and owners must be provided with estimates of developer or service introduction charges (regs 7(5),8(4)) and explanations of how amounts have been determined on request (regs 7(6),8(5)). The Regulations also require a proposed price determination to include a statement of purpose and reasons for decisions (reg 27(3)), and to be open for public submissions via a covering notice (reg 27(4)).
Contract protection: a price determination does not authorise a regulated entity to act inconsistently with an existing customer contract in force at the time the determination is made (reg 29).
Strata notification obligation: bodies corporate must notify a regulated entity of changes to general or special unit entitlements that affect liability for water charges within 30 days (reg 30), or risk a fine.
Collectively, the duties and rights create an enforced information regime around pricing, channel choice between upfront developer/service introduction charges and ongoing fixed/variable charges, investigative and evidentiary powers for the Regulator, and protections to ensure customers and developers can obtain a charge estimate and explanation.
Penalties and enforcement
Enforcement under the Regulations primarily uses pecuniary penalties, the Regulator’s coercive investigatory tools, and court recovery for investigative cost orders. The text specifies the following enforcement mechanisms and penalties.
Offences and fines tied to Regulator directions: A person who contravenes a Regulator direction to keep a hearing or evidence confidential commits an offence and is liable to a fine not exceeding 100 penalty units (regulation 24(5)). Similarly, a person must not contravene a direction prohibiting or restricting publication of information provided under a document requirement; contravention attracts a fine not exceeding 100 penalty units (regulation 26(4)). These provisions create criminal‑law style penalties for breaches of confidentiality directions issued in the context of a price determination investigation.
Strata notification penalty: A body corporate that fails to give written notice within 30 days of a change in general unit entitlement, or the creation/change of a special unit entitlement relating to water liability, is liable to a fine not exceeding 20 penalty units (regulation 30). This is a discrete administrative offence tied to keeping regulated entities informed of apportionment bases in strata schemes.
Recovery of investigation costs: The Regulator may serve a notice requiring a regulated entity to pay specified costs reasonably incurred in conducting and reporting on a price determination investigation and in making the determination available to the public (regulation 28(1)-(2)). The specified amount is a debt due by the entity and the Regulator may recover it in a court of competent jurisdiction (regulation 28(3)-(4)). This shifts financial burden for investigations onto regulated entities, at the Regulator’s discretion.
Compulsion to attend and produce documents: The Regulator may require persons to attend and answer questions and produce documents or information relevant to an investigation by written notice (regulation 25(1)). While the regulation exempts Cabinet records (regulation 25(2)), there is no other statutory privilege set out in these Regulations; non‑compliance would expose the entity or person to enforcement steps (and potentially liability under other statutory regimes).
Confidentiality carve‑outs under RTI: Regulations 24(6) and 26(5) classify certain evidence, documents and records produced in the course of an investigation as confidential and not liable to disclosure under the Right to Information Act 2009. This limits third‑party access to investigative materials and gives the Regulator the power to control publication. The Regulations also allow the Regulator to publish material provided under compulsion, subject to directions and RTI exemptions (reg 26(6)-(7)).
Contractual protection: Regulation 29 provides that price determinations do not authorise a regulated entity to charge or set terms inconsistent with existing customer contracts. While not a penalty mechanism, this limits the Regulator’s ability to impose retrospective or inconsistent pricing on contracting parties and preserves contractual expectations.
Practical enforcement consequences:
The fines specified are monetary and capped; they apply to confidentiality breaches and strata notification failures but not, in these Regulations, to pricing‑substantive offences such as over‑charging. Enforcement of substantive pricing non‑compliance would depend on the Act or other enforcement mechanisms outside these Regulations.
The Regulator’s power to demand documents and to classify those documents as confidential poses a risk if regulated entities inadvertently publish or disclose material contrary to Regulator directions, given the 100 penalty unit cap.
The ability to recover investigation costs places a potential financial compliance burden on regulated entities and thus creates an incentive for entities to engage constructively in investigations and in preemptive disclosure to manage the Regulator’s cost exposure.
All enforcement authorities and penalties in these Regulations are expressed in terms of penalty units; the Regulations do not set non‑monetary sanctions, suspension powers, or administrative orders beyond cost recovery and evidentiary compulsion.
How it interacts with other laws
The Regulations are designed to sit within and operationalise the Act’s pricing regime and to interface with several named external Acts. The text makes direct cross references and establishes procedural and substantive boundaries relative to other legal instruments.
Primary statutory interaction
Water and Sewerage Industry Act 2008 (the Act): The Regulations are statutory instruments that implement the Act’s price determination regime. Regulation 4 expressly prescribes the provisions of Part 2 as matters to which the Regulator must have regard for the purpose of section 66(2)(f) of the Act. The Regulations supplement the Act’s pricing principles (notably section 68 referred to in regulation 9) with additional detailed principles and operational rules (regulations 9-20).
Contract law and existing customer contracts
Regulation 29 clarifies that nothing in a price determination authorises a regulated entity to contravene an existing customer contract that is in force immediately after the determination and was in force before it. This is an express contractual protection: price determinations cannot override terms or pricing commitments in existing contracts. The effect is to preserve party autonomy and existing contractual allocations of risk.
Strata law and apportionment rules
The Regulations rely on terminology and legal concepts from the Strata Titles Act 1998 (see regulation 3 definitions of “common property”, “general unit entitlement”, “special unit entitlement”, “lot” and “scheme”) and impose specific obligations on bodies corporate under that Act (regulation 30). The Regulations therefore interact with strata corporation governance and liability frameworks for charging and apportionment of water/sewerage costs: apportionment of variable charges in common property contexts must use general or special unit entitlements as defined under the Strata Titles Act (regs 16(2),17(1)).
Right to Information Act 2009
Regulations 24(6) and 26(5) expressly take certain investigative material as classified by the Regulator and not liable to disclosure under the Right to Information Act 2009. This creates a statutory confidentiality regime for price determination investigations that limits RTI requests for specified evidence and documentation supplied under investigation compulsion.
Tax law and tax events
Regulation 21 defines “excluded amount”, “relevant tax” and “tax event”, and ties the Regulator’s obligations to tax changes. A variation to a price determination may be exempted from the default investigation requirement where a variation is, in the Regulator’s opinion, required by a tax event after the price determination was made (regulation 21(3)(b)). The definitions distinguish between taxes that are excluded (eg, income tax equivalents, contract amounts, fines) and taxes that the Regulator may treat as directly attributable and not normally absorbed by a business in a fully competitive market (reg 21(1)). This creates an interaction between pricing rules and the tax regime, where tax changes may trigger price adjustments without the full investigatory procedure.
Rules Publication Act 1953
The Regulations are displayed as required by the Rules Publication Act 1953 (footer note). That Act prescribes procedural requirements for publishing subordinate instruments; the Regulations reference the Gazette notification date and administering department (Department of Treasury and Finance).
Areas of boundary and potential friction
The Regulations do not create a comprehensive enforcement regime for substantive pricing breaches beyond the Regulator’s investigative and cost‑recovery powers; substantive enforcement may therefore require recourse to enforcement provisions of the Act or other legal mechanisms.
Where existing contracts set prices or allocation of costs, the Regulations require that price determinations not authorise inconsistency (reg 29). This could create differences between entities with legacy contracts (subject to reg 10 full cost recovery rule) and entities subject to new determinations, producing distributional effects that remain governed by contract law and the Act.
Confidentiality directions and RTI exclusions potentially conflict with publicity obligations under other statutory schemes, but the Regulations resolve that conflict by excluding specified categories from RTI disclosure when classified by the Regulator (regs 24(6),26(5)).
In sum, the Regulations are designed as a detailed operating manual for price‑setting under the Act that explicitly cross‑references and limits interactions with contract law, strata law, RTI, and the tax system. They allocate procedural authority to the Regulator while leaving primary substantive enforcement and contract law unaffected to the extent specified.
Amendment history
The source material supplied records the Regulations’ initial parliamentary and administrative particulars but contains no subsequent amendment entries within the text provided. From the Regulations themselves the following historical facts are explicit and should be recorded in a compliance or legal history file:
Short title: Water and Sewerage Industry (Pricing and Related Matters) Regulations 2021 (regulation 1).
Commencement: The Regulations took effect on 22 September 2021 (regulation 2).
Gazette and administration: The instrument was notified in the Gazette on 16 September 2021 (footer note) and is administered by the Department of Treasury and Finance (footer note).
The Regulations were prepared to operate alongside the Water and Sewerage Industry Act 2008 and reference laws current at the time of drafting (eg, Strata Titles Act 1998, Right to Information Act 2009, Rules Publication Act 1953).
No amending instruments, amendment dates, or repeal provisions are included in the text you provided. The Regulations themselves do not list prior versions or leg history notes. They do, however, create temporal cut‑offs for certain rules , notably reg 3’s definition of “contributed asset” excludes assets transferred under section 41 of the Water and Sewerage Corporations Act 2008 before 1 July 2011, and reg 12(3) treats contributed assets transferred by Crown/emanations after 22 September 2011 differently. These internal temporal references are relevant for applying the contributed asset rules and reflect legislative cutoff dates built into the policy.
Because the source does not record any subsequent amendments, users should treat the supplied text as the original 2021 instrument and must check the official legislation database or Gazette for any later amending regulations, repeals or savings provisions. For legal or compliance work, confirm on the official consolidated register or via the administering department whether amendments, disallowances, or replacement regulations have been made since commencement.
Litigation history
The Regulations as supplied do not include any case law references, judicial decisions, or a litigation history. The instrument itself cites no judicial authorities and makes no mention of legal challenges, court declarations, or tribunal determinations.
Absent any cases named in the text, there are no source‑provided judicial interpretations to cite. If litigation has occurred since commencement, that material will exist outside the content you supplied. For any matter where judicial interpretation of these Regulations is material (for example disputes over the meaning of “reasonable costs”, “excess capacity cost”, the Regulator’s confidentiality directions, or whether the Regulator properly imposed a developer charge), users should search:
the relevant Tasmanian state court and tribunal databases, and
the consolidated legislation database for any annotations or notes of judicial consideration.
In other words: the Regulations do not, in themselves, report any litigation. Practical compliance or advisory work requiring judicial precedent must therefore rely on external research of reported decisions post‑dating this instrument.
Gotchas
The Regulations contain several concrete rules and drafting choices that create practical risks, compliance frictions, or interpretive traps. The following items identify those specific points and the operational mechanism by which they produce risk.
Owner vs occupier: who may be charged
Several provisions restrict charges to owners rather than occupiers. Service introduction charges may only be imposed on an owner (reg 13(1)). Fixed charges for residential premises may only be imposed on an owner (reg 14(2)). Variable water charges in respect of residential premises must not be imposed on persons other than the owner (reg 16(1)). Entities that bill tenants or enter lease arrangements without checking ownership may therefore misapply charges or create recovery problems.
Strata apportionment intricacies
If a scheme has only one water meter, a regulated entity must not impose a variable charge on anyone other than the body corporate unless the charge is apportioned to lot owners based on general unit entitlement or a special unit entitlement (reg 17(1)). Similarly, common property variable charges cannot be imposed on persons other than a body corporate unless apportionment by unit entitlement occurs (reg 16(2)). Failure to use the correct apportionment basis risks improper imposition and possible disputes with bodies corporate. Bodies corporate must notify changes to unit entitlements within 30 days (reg 30), and failure carries a fine (reg 30).
Contributed assets: no return, but O&M recoverable
Contributed assets cannot be included in prices to provide a rate of return or to fund depreciation (reg 12(1)). However, operation and maintenance expenses in relation to contributed assets may be recovered (reg 12(2)). Entities that capitalise contributed assets or treat them like owned assets in price rolls risk contravening reg 12. Special exceptions apply to Crown‑transferred contributed assets after certain dates; those exceptions depend on the terms of transfer (reg 12(3)).
Excess capacity cost recognition and proportionality
Developer charges may include “excess capacity cost” but only to the extent proportionate to the amount of excess capacity utilised for the new development (reg 19(3)). This requires entities to calculate and disclose proportional apportionment between earlier installed capacity and the new development’s use; absent transparent methodology, disputes will arise about what constitutes a proportionate share.
No double‑dipping
Regulation 11 bars including in a charge any cost that has been or will be recouped by another charge. Entities must ensure their accounting allocations do not count the same cost across developer, service introduction, fixed and variable charges. Mis‑allocation creates over‑recovery risk and potential regulatory challenge.
Variable charge may exceed cost for policy reasons
Regulation 15(6) allows variable charges to exceed cost when supply/capacity constraints, demand‑management, or other allowed reasons apply. This creates a potential conflict between cost‑reflective pricing and demand management objectives. Entities must be prepared to justify the pricing in the public consultation and investigation processes; failure to document rationale may attract Regulator objection.
Regulator’s broad investigatory discretion, confidentiality and penalties
The Regulator is not bound by rules of evidence and can conduct investigations in any manner it thinks appropriate (reg 23(2)-(4)). It may compel documents and attendance (reg 25) and classify material as confidential and exempt from RTI (regs 24(6),26(5)). Directions to keep hearings or material private attract a substantial fine (100 penalty units) for contravention (regs 24(5),26(4)). Entities must therefore treat Regulator directions seriously and monitor internal disclosure controls.
Cost of investigations can be recovered from entities
The Regulator may require regulated entities to pay all or part of investigation costs (reg 28). That shifts financial risk to entities and may generate disputes over what is “reasonably incurred.” Entities should budget for potential cost recovery or seek to influence investigation scope to manage exposure.
Timing and procedural deadlines are long and precise
The Regulator must give preliminary notice at least 11 months prior to expiry of a price determination and 6 months before the expiry of an interim price order (reg 22(1)-(2)). For variations, at least 2 months’ notice is required (reg 22(3)). These lead time requirements mean regulated entities and developers must plan years ahead for pricing changes, and late filings or delayed consultations may be difficult to fix.
Existing contracts shield customers, but also entrench differences
Regulation 29 preserves existing contracts, meaning different customers may continue under different pricing regimes. That reduces transitional risk for contracting parties but also produces potentially uneven cost recovery across customer bases; entities must manage cross‑subsidy risks and document contract‑specific accounting.
Each “gotcha” is grounded in a particular regulation and is concrete in its mechanism. Addressing them requires operational controls (billing systems, metering, accounting allocations), document templates (estimates and methodologies), and governance procedures to manage Regulator interactions and confidentiality directions.
How to comply
Compliance under these Regulations requires both policy measures (what must be in the price and service plan) and operational processes (billing, metering, records, responses to Regulator notices). Below is a practical compliance checklist mapped to the controlling provisions.
Governance and documentation
Price and service plan content: ensure plans include a developer charges policy that specifies the calculation method and is published on the entity’s website for the plan period (reg 7(1)-(4)). If a price determination requires it, include a service introduction charges policy specifying how charges are determined (reg 8(1)-(2)). Include all miscellaneous fees and charges in the plan (reg 20).
Policies and publication: publish developer charges policy online and keep it available for the period it applies (reg 7(4)). Ensure both the developer and service introduction policies explain methods and are written to enable persons to calculate estimated charges (reg 7(3),7(5),8(2),8(4)-(5)).
Operational billing and metering
Owner/occupier billing rules: do not impose service introduction charges or residential fixed charges on persons who are not owners (regs 13(1),14(2)). For residential variable water charges, ensure billing is imposed on the owner only (reg 16(1)), unless apportionment rules apply under the strata rules.
Strata and single‑meter schemes: where a scheme has only one meter, do not impose variable charges on individuals unless apportionment is based on general or special unit entitlement (reg 17(1)). Implement a process to request and record unit entitlements and require bodies corporate to notify changes (reg 30).
Meter records and estimation: where meters are installed and working accurately, calculate variable charges from meter records (reg 17(2)). Put procedures in place for estimating consumption if meters are faulty or removed, using either comparable periods, corrected data post‑repair, or correction factors for consistent meter error (reg 17(3)(a)-(c)).
Accounting and charge allocation
No double recovery: maintain cost accounting that prevents the same cost being included in multiple charges (reg 11). Document the allocation approach showing which costs are recovered via developer charges, service introduction charges, fixed charges, and variable charges.
Contributed assets: do not include return or depreciation on contributed assets in price calculations (reg 12(1)); however, record and track operating and maintenance expenses that are recoverable (reg 12(2)). For Crown supplied contributed assets post‑22 September 2011, ensure transaction terms are checked for permitted rates of return (reg 12(3)).
Excess capacity and developer charge calculations: prepare methodologies to calculate excess capacity costs and the proportion attributable to a new development (reg 19(3)). Ensure exclusions for costs attributable to unanticipated increased external demand from existing customers are applied (reg 19(2)(d),19(4)).
Customer information and processes
Estimates and explanations: implement an intake and information process to provide prospective developers and property owners with estimates and breakdowns of developer charges and service introduction charges upon request and where sufficient information is supplied (regs 7(5),7(6),8(4)-(5)). Retain templates and model calculations to provide consistent responses.
Payment options for service introduction charges: offer payment over not less than 12 months and permit shorter terms at owner request (reg 8(3)). Maintain payment plans and disclosure documents aligning with the policy.
Procedural compliance with Regulator investigations
Prepare for notices: create legal and compliance workflows for responding to Regulator notices requiring attendance, documents, or information (reg 25). Identify Cabinet records and withhold them where the regulation excludes compulsion to divulge them (reg 25(2)).
Confidentiality and publication controls: if the Regulator issues directions restricting publication of material or holding hearings in private, ensure staff comply to avoid 100 penalty unit fines (regs 24(4)-(5),26(3)-(4)). Establish document handling and redaction protocols for materials supplied under compulsion and liaise with legal counsel before any disclosure.
Budget for potential investigation cost notices: track investigation‑related costs and maintain proper invoices and time records, as the Regulator may require entities to pay all or part of the reasonable costs of investigations and publication (reg 28(1)-(3)). Consider seeking clarity or negotiation on scope and recoverability where cost recovery notices are issued.
Regulatory and public consultation engagement
Submission processes: be ready to engage in the Regulator’s public consultation process. The Regulator must publish proposed determinations and invite submissions (reg 27). Prepare position papers and supporting data to justify cost allocation choices, especially where variable charges may exceed cost for demand‑management reasons (reg 15(6)(c)).
Pricing zone evidence: if proposing pricing zones, prepare cost studies demonstrating significant cost differences between areas and a cost-benefit assessment showing implementation costs do not outweigh benefits (reg 5(2)-(3)). Maintain technical and commercial evidence to support zone boundaries and the cost‑reflectivity requirement (reg 5(4)).
Recordkeeping and internal control
Maintain full audit trails for calculations of developer, service introduction, fixed and variable charges and for decisions not to accept contributed assets or to accept them in reduction of charges (reg 19(5)-(6)). Ensure records are organised to be producible under regulation 25 and that originals and copies are managed per regulation 26(1)-(2).
Contract management
Review existing contracts to determine whether any price determination would conflict with contractual terms. Regulation 29 preserves contracts that are in force at the time of a price determination; document which customer contracts enjoy this protection and ensure billing systems respect those contractual terms.
Practical legal steps
Maintain a compliance calendar aligned to the Regulator’s timing obligations , preliminary notices, interim order expiries, and the timeline for proposed determinations (reg 22). Ensure legal counsel reviews draft policies and public materials to avoid inadvertent disclosure of material the Regulator may classify or restrict.
This operational checklist is built from the Regulations’ specific provisions. Entities should draft, implement, and periodically test the controls above and record decision rationales and calculations to support both public consultation and potential Regulator review.
fixed charge means a charge, which is recurrent, for the provision of a regulated service to a customer, but does not include a variable charge for the service;
general unit entitlement has the same meaning as it has in the Strata Titles Act 1998 ;
lot has the same meaning as it has in the Strata Titles Act 1998 ;
price determination investigation, in respect of a regulated service, means an investigation for the purpose of gathering information that may be required by the Regulator before making a price determination in respect of the regulated service or a variation of such a price determination;
pricing zone means an area of land in respect of which prices, which will apply for the provision of a regulated service, may vary from the prices charged in respect of another pricing zone;
scheme has the same meaning as it has in the Strata Titles Act 1998 ;
service introduction charge means a charge, in respect of a property, that relates to the installation, alteration or utilisation of assets by a regulated entity so as to enable the provision, by the entity, of a regulated service to the property but does not include –
(a) a connection charge; or
(b) a fixed charge; or
(c) a developer charge;
special unit entitlement has the same meaning as it has in the Strata Titles Act 1998 ;
variable charge means a charge, for a regulated service, that varies according to the volume of the water delivered to, or sewage removed from, the property to which the charge relates.
Part 2 Matters in Respect of Price Determinations
Part 2 Matters in Respect of Price Determinations
Division 1 General
Division 1 General
4 Matters to which Regulator is to have regard
4 Matters to which Regulator is to have regard
The provisions of this Part are prescribed, for the purposes of section 66(2)(f) of the Act, as matters to which the Regulator is to have regard in making a price determination under that section.
5 Pricing zones
5 Pricing zones
(1) A price determination may specify that a price and service plan is to include, or is not to include, pricing zones.
(2) A price determination may only specify that a price and service plan is to include pricing zones if there are significant differences in the costs of providing the regulated service to different areas of land within the area to which the regulated service may be provided by the regulated entity.
(3) A price determination is not to require that a price and service plan is to include pricing zones if, in the opinion of the Regulator, the costs of implementing such zones would outweigh the benefits of doing so.
(4) Prices charged, in relation to the provision of a regulated service by a regulated entity in respect of properties within a pricing zone, are to reflect, so far as is commercially and technically practicable, the costs of providing the regulated service to the properties.
6 Estimates of changes of prices over life of plan
6 Estimates of changes of prices over life of plan
A price determination is to require a price and service plan to include anticipated changes, over time, of any prices specified in the plan.
Division 2 Charges policies
Division 2 Charges policies
7 Developer charges policy
7 Developer charges policy
(1) A price determination is to require a regulated entity’s price and service plan to include a policy in respect of developer charges (a developer charges policy) that complies with these regulations.
(2) A regulated entity’s developer charges policy is to specify the method by which the amount of a developer charge will be calculated by the entity.
(3) A regulated entity must ensure that the entity’s developer charges policy includes information that enables a person to calculate the amount of the developer charge estimated to be payable in respect of a proposed new development on a property in a region or location.
(4) A regulated entity’s developer charges policy must be published on the entity’s website for the period for which the policy is to apply.
(5) A regulated entity’s developer charges policy is to require the entity to provide an estimate of the amount of the developer charge that is to apply, in respect of a property, to a person who –
(a) proposes a new development in respect of the property; and
(b) provides, to the entity, sufficient information as to the proposals for the new development to enable an estimate to be determined; and
(c) requests that an estimate be provided to the person.
(6) A regulated entity’s developer charges policy is to require the entity to provide information, as to how the amount of a charge has been determined by the entity, to a person –
(a) on whom a developer charge is imposed; and
(b) who requests the information to be provided to the person.
8 Service introduction charges policy
8 Service introduction charges policy
(1) A price determination may require a price and service plan for a regulated entity to include a policy in respect of service introduction charges (a service introduction charges policy) that complies with these regulations.
(2) A regulated entity’s service introduction charges policy is to specify how service introduction charges are to be determined by the entity.
(3) A regulated entity’s service introduction charges policy is to permit an owner of a property to which a service introduction charge relates to pay the charge –
(a) over a period of not less than 12 months; or
(b) at the owner’s request, over a period of less than 12 months.
(4) A regulated entity’s service introduction charges policy is to require the entity to provide to a person, before a service introduction charge is imposed on the person, an estimate of the amount of that charge that may be imposed on the person.
(5) A regulated entity’s service introduction charges policy is to require the entity to provide, to a person on whom a service introduction charge is imposed, information as to how the amount of the charge has been determined by the regulated entity.
Part 3 Pricing Principles
Part 3 Pricing Principles
Division 1 General
Division 1 General
9 Additional pricing principles
9 Additional pricing principles
The provisions in this Part specify pricing principles that apply, in addition to the pricing principles set out in section 68 of the Act, in relation to prices for the provision of a regulated service.
10 Full cost recovery from certain contracts
10 Full cost recovery from certain contracts
(1) Prices for the provision of a regulated service by a regulated entity to a customer, under a relevant contract, are to allow for the recovery of the full cost of providing the service to the customer.
(2) For the purposes of subregulation (1) , a relevant contract means –
(a) a contract, other than a customer contract, that was in force immediately before 22 September 2011 and is still in force; or
(b) a contract entered into pursuant to section 61 of the Act.
11 No double-dipping
11 No double-dipping
A cost of providing a regulated service to a customer must not be included in a charge imposed on the customer if the cost has been, or is to be, recouped by the imposition on the customer of another charge.
12 Contributed assets
12 Contributed assets
(1) Prices for the provision of a regulated service are not to be set so as to allow for either of the following:
(a) a rate of return in respect of contributed assets;
(b) depreciation of contributed assets.
(2) Despite subregulation (1) , prices for the provision of a regulated service are to be set so as to allow for the recovery of expenses incurred by a regulated entity in respect of the operation or maintenance of a contributed asset.
(3) Subregulation (1) does not apply in relation to a contributed asset of a regulated entity that has been –
(a) transferred, granted, or given by way of a gift, to the regulated entity by the Crown or an emanation of the Crown, after 22 September 2011; or
(b) constructed by the regulated entity using funds provided by the Crown or an emanation of the Crown after 22 September 2011 –
if the arrangement or transaction under which the asset became an asset of the entity specifies that the return on the assets is to be not more than a rate that reflects the regulatory and commercial risks involved in providing the regulated service.
Division 2 Particular charges
Division 2 Particular charges
13 Service introduction charges
13 Service introduction charges
(1) A service introduction charge must not be imposed on a person in relation to a property unless the person is an owner of the property.
(2) The amount of a service introduction charge imposed on a person in relation to a property is not to be more than is necessary to recoup the reasonable costs incurred by a regulated entity in installing, altering or utilising its assets so as to be able to provide a regulated service to the property.
(3) For the purposes of subregulation (2) , the reasonable costs incurred by a regulated entity are –
(a) the costs directly attributable to installing, altering or utilising its assets in a reasonably cost-efficient manner so as to be able to provide a regulated service to the property; and
(b) to be calculated so as to reflect variations in the costs of providing the regulated service to different locations or regions.
(4) A service introduction charge may be imposed on a person in addition to a fixed charge.
14 Fixed charges
14 Fixed charges
(1) A fixed charge for a regulated service is to reflect the costs to the regulated entity that –
(a) are reasonably attributable to providing the service to the property to which the charge relates; and
(b) are not recouped through a developer charge or service introduction charge.
(2) A fixed charge for a regulated service in relation to a property must not be imposed on a person in relation to residential premises situated on the property unless the person is an owner of the residential premises.
15 Imposition of variable charges
15 Imposition of variable charges
(1) A regulated entity must charge a variable charge for a water service.
(2) A regulated entity may, but is not required to, charge a variable charge for a sewerage service.
(3) A variable charge that is imposed for a regulated service must be charged in respect of each unit of water delivered to, or sewage removed from, the property to which the charge relates.
(4) The rate of a variable charge to be charged by a regulated entity must not be less than the cost of delivering water to, or removing sewage from, the property to which the charge relates.
(5) A variable charge for a regulated service is to reflect the costs, to the regulated entity, that are reasonably attributable to the volume of water delivered to, or sewage remove from, the property to which the charge relates.
(6) Despite subregulation (5) , the rate of variable charge to be charged by a regulated entity in respect of a regulated service may be greater than the cost of delivering water to, or removing sewage from, the property, if –
(a) there are constraints on the amount of water available to be provided by the entity or the capacity of water treatment plants or sewage treatment plants; or
(b) there are constraints on the capacity of the regulated entity’s infrastructure; or
(c) it is desirable to do so to reduce demand for the supply of water, or removal of sewage, for the relevant purpose; or
(d) the Regulator is of the opinion that the rate should be greater than the cost so as to enable the regulated entity to recoup any costs that may not otherwise be recouped by the regulated entity.
(7) For the purposes of subregulation (6)(c) , the relevant purpose for reducing demand for the supply of water, or removal of sewage, is so as to enable the expenditure in relation to assets that would otherwise be required to meet increased demand for the service to be deferred so that expenditure, in relation to assets, for the purposes of improving health, public safety or the environment may occur instead.
16 When variable charges may not be imposed
16 When variable charges may not be imposed
(1) A variable charge for a water service must not be imposed, in relation to residential premises situated on a property, on a person other than the owner of the residential premises.
(2) All or part of an amount of a variable charge, for a water service in relation to property that is common property, must not be imposed on a person, other than a body corporate formed under the Strata Titles Act 1998 , unless –
(a) the person is the owner of a lot that forms part of the scheme to which the common property relates; and
(b) the amount of the charge imposed on the person consists of the proportion, of the variable charge in relation to the common prop
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