Water and Sewerage Industry (Pricing and Related Matters) Regulations 2021
15Imposition of variable charges
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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.