Water Industry Competition (General) Regulation 2024
In ForceNSW
Jurisdiction
New South Wales
Act Number
51 of 2024
Collection
regulation
Plain English Summary
8/10 complexity
This regulation replaces the 2021 rules and sets the operational detail for water industry competition: which infrastructure is covered or excluded, licence and approval conditions, IPART’s investigation and reporting procedures, last‑resort contingency planning and developer connection processes. It prescribes the standard customer contract for small retail customers and consumer protections.
It affects councils, licensed operators and retailers, developers and small retail customers by allocating costs (for example developers and essential service providers), imposing reporting, audit and compliance duties, and creating enforcement penalties.
This regulation, titled Water Industry Competition (General) Regulation 2024, takes effect 1 March 2024 and replaces the previous 2021 regulation (s 1, s 2, s 65). It provides the detailed operational and compliance rules that implement and supplement the Water Industry Competition Act 2006 (the Act), allocating responsibilities between IPART, the Minister, licensed operators and licensed retailers, and setting default customer contract terms (Schedule 4). Mechanically, the regulation does the following.
Prescribes definitions and technical meanings used across the Act and regulation, including the meaning of stormwater, critical health needs and the national safety guidelines that operators must follow (s 3, s 4, s 5).
Specifies which water industry infrastructure is caught by the Act, Part 2 and which is excluded (ss 6-9, Schedule 1). The exclusions list detailed classes of infrastructure (Schedule 1, cl 2-17), for example infrastructure used only for stormwater drainage or owned by certain Aboriginal organisations.
Sets approval and licence procedures and conditions. It narrows exceptions to scheme approvals for certain recycled-water storage and reticulation works (s 10), requires IPART to be satisfied that licences authorise proposed activities when granting approvals (ss 11-12), and prescribes licence conditions (s 14; Schedule 2).
Implements market-facing customer protections. It fixes a comprehensive deemed customer contract that applies automatically to small retail customers on regulated schemes (s 19; Schedule 4). The deemed contract sets service standards, billing rights, payment-difficulty processes, disconnection rules and rebates (Schedule 4, Parts 3-11).
Confers investigative and consultation processes for IPART when reviewing monopoly pricing methodologies and determinations in declared monopoly services (Part 4, Divisions 1-2, ss 24-32). That regime prescribes issues papers, public hearings, draft and final report content and public availability (ss 27-32).
Current sections
Direct links to the current provisions in Water Industry Competition (General) Regulation 2024.
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.
(2) In this regulation, a person has critical health needs if the person needs a continuous drinking water service to operate a life support machine or for other critical health needs.
s 3: Am 2025 No 48, Sch 3.16.
4
Meaning of “stormwater”
4 Meaning of “stormwater”
4 Meaning of “stormwater”
(1) For the Act, Dictionary, definition of stormwater, paragraph (a), stormwater includes rainwater that has run off an urban surface, including a roof, pavement, car park, road, garden or vegetated open space.
(2) For the Act, Dictionary, definition of stormwater, paragraph (b), stormwater does not include—
(a) rainwater collected solely from roofs, or
(b) leachate collected from landfill.
5
National safety guidelines
5 National safety guidelines
5 National safety guidelines
For the Act, Dictionary, definition of national safety guidelines, the following documents as in force from time to time are prescribed—
(a) the Australian Drinking Water Guidelines, published by the Australian Government, the National Health and Medical Research Council and the Natural Resource Management Ministerial Council,
(b) the Australian Guidelines for Water Recycling, including Phases 1 and 2, published by the Environment Protection and Heritage Council, the Natural Resource Management Ministerial Council and the Australian Health Ministers’ Conference.
Part 2
Water industry infrastructure
Part 2 Water industry infrastructure
Part 2 Water industry infrastructure
Division 1
Preliminary
Division 1 Preliminary
Division 1 Preliminary
6
Classes of water industry infrastructure
6 Classes of water industry infrastructure
6 Classes of water industry infrastructure
For the Act, section 3A(f), the following purposes are prescribed—
(a) the supply of drinking water,
(b) the collection and treatment of groundwater for the production, supply and use of water,
(c) the collection and treatment of wastewater, other than sewage, stormwater or recycled water, for the production, supply and use of water.
7
Water industry infrastructure to which the Act, Part 2 applies
7 Water industry infrastructure to which the Act, Part 2 applies
7 Water industry infrastructure to which the Act, Part 2 applies
(1) For the Act, section 5(1)(d), water industry infrastructure operated by or on behalf of a council is declared to be water industry infrastructure to which the Act, Part 2 applies if it is used or is to be used for the production or supply of recycled water for the following purposes—
(a) washing or cleaning, including vehicles, paths, common areas or fences,
(b) toilets, laundries or washing machines,
(c) irrigation for the purposes of growing food,
(d) above ground irrigation of a golf course or public open space, including a park, sportsground or median strip, if the recycled water is wholly or partly obtained from the treatment of sewage.
(2) Water industry infrastructure specified in subsection (1) includes a reticulation network connected to the infrastructure and used to convey anything to or from the infrastructure.
8
Water industry infrastructure excluded from the Act, Part 2
8 Water industry infrastructure excluded from the Act, Part 2
8 Water industry infrastructure excluded from the Act, Part 2
(1) For the Act, section 5(2)(b), the following water industry infrastructure is excluded from the application of the Act, Part 2—
(a) water industry infrastructure specified in the Act, section 5(1)(c), if the infrastructure is not also covered by the Act, section 5(1)(a) or (b),
(b) water industry infrastructure specified in this regulation, section 7,
(c) water industry infrastructure specified in this regulation, Schedule 1.
(2) Subsection (1)(a) and (b) apply to water industry infrastructure only if—
(a) the water industry infrastructure is—
(i) immediately before 1 March 2024, constructed but not yet operated by or on behalf of a council, or
(ii) immediately before 1 March 2024, operated by or on behalf of a council, or
(iii) on or after 1 March 2024, constructed and operated by or on behalf of a council, in accordance with an existing consent, and
(b) the construction or operation of the water industry infrastructure is not substantially modified or expanded on or after 1 March 2024.
(3) In this section—
existing consent means one of the following in force immediately before 1 March 2024—
The Act, section 5(2)(a) provides that the Act, Part 2 does not apply to water industry infrastructure within the area of operations of a public water utility and operated by or on behalf of the public water utility, other than as a last resort provider.
9
Policies about use of water resources
9 Policies about use of water resources
9 Policies about use of water resources
For the Act, section 5A(a), the following policies published by the Department in which the Act is administered, as in force from time to time, are prescribed—
(a) the NSW Water Strategy,
(b) the Greater Sydney Water Strategy,
(c) the Lower Hunter Water Security Plan.
Division 2
Scheme approvals and operational approvals
Division 2 Scheme approvals and operational approvals
Division 2 Scheme approvals and operational approvals
10
Exceptions from requirement for scheme approval—the Act, s 6(2)
10 Exceptions from requirement for scheme approval—the Act, s 6(2)
10 Exceptions from requirement for scheme approval—the Act, s 6(2)
(1) A council may construct the following water industry infrastructure without a scheme approval if development consent has been granted under the Environmental Planning and Assessment Act 1979 or if environmental assessment has been carried out in relation to the development under that Act, Division 5.1—
(a) a water storage facility for recycled water,
(b) a water reticulation system for recycled water.
(2) Despite subsection (1), a scheme approval is required before the water industry infrastructure is connected to a water source.
Note—
See also the Act, section 6A, which provides that a person must not operate water industry infrastructure unless the infrastructure is substantially constructed as authorised by a scheme approval.
(3) In this section—
water reticulation system has the same meaning as in the Standard Instrument.
water storage facility has the same meaning as in the Standard Instrument.
11
Grant of scheme approval
11 Grant of scheme approval
11 Grant of scheme approval
For the Act, section 7C(1)(g), IPART must be satisfied that the relevant operator licence authorises the activities proposed under the scheme approval, having regard to all the water industry infrastructure to be operated under the operator licence.
12
Grant of operational approval
12 Grant of operational approval
12 Grant of operational approval
For the Act, section 7D(1)(h), IPART must be satisfied that the relevant retailer licence authorises the activities proposed under the operational approval, having regard to all the water and sewerage services to be sold under the retailer licence.
13
Condition of scheme approvals—the Act, s 7H(1)(e)
13 Condition of scheme approvals—the Act, s 7H(1)(e)
13 Condition of scheme approvals—the Act, s 7H(1)(e)
(1) It is a condition of a scheme approval for water industry infrastructure that a water meter must be installed for each household or business that is or will be serviced by the water industry infrastructure.
(2) The water meter must comply with the requirements of the Plumbing Code of Australia, published by the Australian Building Codes Board, as in force from time to time.
Division 3
Licences
Division 3 Licences
Division 3 Licences
14
Conditions of licences—the Act, s 8G(1)(b)
14 Conditions of licences—the Act, s 8G(1)(b)
14 Conditions of licences—the Act, s 8G(1)(b)
(1) A licence is subject to the conditions set out in Schedule 2, Part 1.
(2) An operator licence is also subject to the conditions set out in Schedule 2, Part 2.
(3) A retailer licence is also subject to the conditions set out in Schedule 2, Part 3.
15
Licensee must notify IPART
15 Licensee must notify IPART
15 Licensee must notify IPART
(1) For the Act, section 8H(1)(f), the licensee must give written notice to IPART within—
(a) 24 hours after proposing to cease to operate the water industry infrastructure for which the licensee is the registered operator, and
(b) 1 hour after ceasing to operate the infrastructure.
(2) For the Act, section 8I(1)(a), the licensee must give written notice to IPART within—
(a) 24 hours after proposing to cease to provide retail services under the licence for a particular regulated scheme, and
(b) 1 hour after ceasing to provide the retail services.
(3) Subsections (1)(a) and (2)(a) do not apply if the licensee ceases to operate water industry infrastructure or to provide retail services in an emergency.
16
Agreement between registered operator and registered retailer
16 Agreement between registered operator and registered retailer
16 Agreement between registered operator and registered retailer
For the Act, section 8H(1)(h)(ii), an agreement between a registered operator and a registered retailer must specify—
(a) the responsibilities of each licensee under a customer contract, including who is responsible for the following—
(i) installing, testing, repairing, maintaining, reading or replacing meters,
(ii) undertaking inspections, including inspections of backflow prevention devices or cross-connections in dual reticulation schemes, and
(b) the notification requirements for each licensee under a customer contract, including a requirement for a licensee to notify the other licensee when—
(i) a customer is connected to the regulated scheme, or
(ii) the water supply or sewerage service is interrupted, or
(iii) a customer makes a complaint, or
(iv) the licensee is notified that a customer or person living at the customer’s property has critical health needs, or
(v) a customer seeks or is granted an approval from the licensee.
17
Splitting of composite licences—the Act, s 8K(4)(b)
17 Splitting of composite licences—the Act, s 8K(4)(b)
17 Splitting of composite licences—the Act, s 8K(4)(b)
(1) The Minister may split a composite licence into its component licences on—
(a) the Minister’s own initiative, or
(b) the recommendation of IPART, or
(c) the application of the licensee.
(2) An application by a licensee must be made to IPART and determined by the Minister.
(3) If the Minister proposes to split a composite licence into its component licences under subsection (1)(a) or (b), the Minister must give the licensee at least 14 days to make submissions about the proposal.
18
Annual fees and returns—default penalty
18 Annual fees and returns—default penalty
18 Annual fees and returns—default penalty
For the Act, section 8N(4), the penalty for default is $5,500.
Part 3
Operation of water retail market
Part 3 Operation of water retail market
Part 3 Operation of water retail market
19
Deemed customer contracts for regulated schemes—the Act, s 46AB(1)
19 Deemed customer contracts for regulated schemes—the Act, s 46AB(1)
19 Deemed customer contracts for regulated schemes—the Act, s 46AB(1)
The terms and conditions of the deemed customer contract are set out in Schedule 4.
20
Requirement to notify registered retailer of scheme connection—the Act, s 46AB(6)(a)
20 Requirement to notify registered retailer of scheme connection—the Act, s 46AB(6)(a)
20 Requirement to notify registered retailer of scheme connection—the Act, s 46AB(6)(a)
(1) The registered operator of infrastructure that connects a scheme to premises must give written notice to the registered retailer for the infrastructure as soon as reasonably practicable after the premises are connected to the scheme.
(2) Subsection (1) does not apply if the registered operator of infrastructure and the registered retailer are the same person.
21
IPART may modify or exclude application of deemed customer contract—the Act, s 46AB(6)(c) and (d)
21 IPART may modify or exclude application of deemed customer contract—the Act, s 46AB(6)(c) and (d)
21 IPART may modify or exclude application of deemed customer contract—the Act, s 46AB(6)(c) and (d)
(1) IPART may modify or exclude the application of the deemed customer contract for a registered operator or a registered retailer on the joint application of the registered operator and registered retailer.
(2) A modification or exclusion may apply generally or in specified circumstances.
(3) An application for a modification or exclusion must be—
(a) made in the form and way determined by IPART, and
(b) accompanied by the fee determined by IPART.
(4) IPART may determine different fees for different kinds of applications.
(5) The fees must be published on IPART’s website.
22
Notice of increase in contract charges—the Act, s 46AC(6)(a)
22 Notice of increase in contract charges—the Act, s 46AC(6)(a)
22 Notice of increase in contract charges—the Act, s 46AC(6)(a)
The maximum increase is the Consumer Price Index All Groups Index for Sydney, published by the Australian Bureau of Statistics, for the most recent quarter.
23
Internal review—the Act, s 47(2)(c)
23 Internal review—the Act, s 47(2)(c)
23 Internal review—the Act, s 47(2)(c)
A failure by a licensed operator or licensed retailer to determine an application for a review under the Act, section 47 within 20 business days after the application is made is taken to be a refusal to alter the decision to which the application relates.
Part 4
Investigations into pricing determinations for monopoly services—the Act, s 52(3) and (4)
Part 4 Investigations into pricing determinations for monopoly services—the Act, s 52(3) and (4)
Part 4 Investigations into pricing determinations for monopoly services—the Act, s 52(3) and (4)
24
Application of IPART Act, Part 3
24 Application of IPART Act, Part 3
24 Application of IPART Act, Part 3
(1) For the Act, section 52(3), the IPART Act, Part 3 applies to a matter referred to IPART under the Act, section 52, subject to the following modifications—
(a) a reference to a government agency in the IPART Act, Part 3 is taken to be a reference to a monopoly supplier,
(b) the IPART Act, sections 15(1)(c) and (h), 16 and 18 do not apply.
(2) If there is an inconsistency between a provision of this part and a provision of the IPART Act, Part 3, Division 7, the provision of this part prevails to the extent of the inconsistency.
(3) This part applies to a matter referred to IPART under the Act, section 52 before or after 1 March 2024.
25
Definitions
25 Definitions
25 Definitions
(1) In this division—
investigated monopoly supplier, in relation to an investigation by IPART under this division, means the monopoly supplier providing the monopoly service that is the subject of the investigation.
issues paper means an issues paper prepared by IPART under section 27.
public hearing means a public hearing held under section 29 in relation to an issues paper.
significant methodological change, in relation to an investigation under this division, means a change in the pricing methodology applied, or proposed to be applied, to the monopoly service that IPART considers is significantly different from the methodology previously applied to—
(a) the determination of the pricing for the monopoly service, or
(b) the determination of pricing for services of a kind to which the monopoly service belongs.
(2) This division does not limit the application of any other provision of the IPART Act, Part 3 in that Act’s application to an investigation by IPART under this division.
26
Application of division
26 Application of division
26 Application of division
(1) This division applies to an investigation by IPART into a determination of the pricing methodology for a monopoly service if a declaration under the Act, section 51 was in force in relation to the monopoly service immediately before 1 March 2024.
(2) IPART is taken to have complied with the provisions of this division if IPART has substantially complied with, or has taken all reasonable steps to comply with, the provisions.
27
IPART to prepare issues papers
27 IPART to prepare issues papers
27 IPART to prepare issues papers
(1) IPART must, as soon as it considers appropriate after the commencement of an investigation under this division, prepare an issues paper about the investigation.
(2) The issues paper must set out the following matters—
(a) the pricing methodology and the general approach IPART proposes to adopt in conducting the investigation,
(b) significant methodological changes IPART proposes to consider,
(c) the date on which IPART proposes to hold public hearings on the issues paper.
(3) The issues paper may include other matters IPART considers appropriate.
(4) A copy of the issues paper must be—
(a) given to the investigated monopoly supplier, and
(b) made publicly available on the IPART website.
28
Submissions on issues papers
28 Submissions on issues papers
28 Submissions on issues papers
(1) IPART must invite the investigated monopoly supplier and any other persons to make submissions about an issues paper.
(2) IPART must also invite submissions to be made about submissions made by the investigated monopoly supplier on the issues paper.
(3) Submissions must be—
(a) written, or
(b) given orally at a public hearing on the issues paper, as referred to in section 29.
(4) IPART must specify the period in which submissions must be made.
(5) Different periods may be specified for different submissions.
(6) IPART may extend the period if IPART considers it appropriate.
(7) Without limiting the application of the IPART Act, section 22A(3), written submissions about the issues paper made by the investigated monopoly supplier must be made publicly available on the IPART website.
Note—
The IPART Act, section 22A(3) enables IPART to restrict the disclosure of information contained in documents it makes available.
29
IPART to hold public hearings on issues papers
29 IPART to hold public hearings on issues papers
29 IPART to hold public hearings on issues papers
(1) IPART must hold a public hearing to hear submissions on an issues paper.
(2) The public hearing may be held over 1 or more days.
(3) IPART may hear oral submissions on the issues paper at the public hearing from the investigated monopoly supplier and other persons IPART considers appropriate.
30
IPART to prepare draft reports
30 IPART to prepare draft reports
30 IPART to prepare draft reports
(1) IPART must prepare a draft report about an investigation as soon as IPART considers appropriate after the conclusion of the public hearing on the issues paper about the investigation.
(2) Before preparing the draft report, IPART must consider all submissions made in relation to the issues paper, including submissions about the investigated monopoly supplier’s submissions, that it considers material.
(3) The draft report must include the following matters—
(a) the determination of pricing IPART proposes to make,
(b) the pricing methodology for the proposed determination,
(c) significant methodological changes and the reasons for the changes,
(d) the assumptions IPART has made for the proposed determination and the reasons for the assumptions,
(e) IPART’s response to submissions received on the issues paper that IPART considers material, including the reasons for accepting or not accepting, whether wholly or in part, material submissions made by the investigated monopoly supplier.
(4) The draft report may include other matters IPART considers appropriate.
(5) A copy of the draft report must be—
(a) given to the investigated monopoly supplier, and
(b) made publicly available on the IPART website.
31
Submissions on draft reports
31 Submissions on draft reports
31 Submissions on draft reports
(1) IPART must invite the investigated monopoly supplier and any other persons to make written submissions about a draft report prepared under section 30.
(2) IPART must specify the period in which submissions must be made.
(3) Different periods may be specified for different submissions.
(4) IPART may extend the period if IPART considers it appropriate.
32
IPART to prepare final reports
32 IPART to prepare final reports
32 IPART to prepare final reports
(1) Before IPART issues the final report about an investigation, IPART must consider all submissions made about the draft report prepared under section 30 that it considers material.
(2) The final report must include the following matters—
(a) the pricing methodology applied for the determination of pricing IPART has made,
(b) significant methodological changes and the reasons for the changes,
(c) the assumptions IPART has made for the determination and the reasons for the assumptions,
(d) IPART’s response to submissions received on the draft report that IPART considers material, including the reasons for accepting or not accepting, whether wholly or in part, material submissions made by the investigated monopoly supplier.
(3) The final report may include other matters IPART considers appropriate.
Part 5
Last resort arrangements—the Act, Part 5A
Part 5 Last resort arrangements—the Act, Part 5A
Part 5 Last resort arrangements—the Act, Part 5A
33
Criteria for last resort providers
33 Criteria for last resort providers
33 Criteria for last resort providers
For the Act, section 55(3)(b), the criteria are the following—
(a) a licensee must be capable of operating the essential service,
(b) a licensee must be suitable having regard to the proximity of the licensee to the essential service,
(c) if the licensee is a licensed operator—the licence must authorise the same class of water industry infrastructure as the essential infrastructure.
34
Revocation of designation as last resort provider—the Act, s 55(10)
34 Revocation of designation as last resort provider—the Act, s 55(10)
34 Revocation of designation as last resort provider—the Act, s 55(10)
(1) The Minister may, on application by a licensee designated as a last resort provider under the Act, section 55(1), revoke the licensee’s designation.
(2) An application for a revocation must be—
(a) made in the form and way determined by the Minister, and
(b) accompanied by the fee determined by the Minister.
(3) The Minister must consult with IPART before determining an application, unless consultation is not reasonably practicable because of the urgency of the circumstances.
35
Appointment of technical experts—the Act, s 55A(2)(e)
35 Appointment of technical experts—the Act, s 55A(2)(e)
35 Appointment of technical experts—the Act, s 55A(2)(e)
(1) IPART may, by written notice, appoint a person, including a member of staff of IPART, as a technical expert to assist in the preparation or testing of contingency plans.
(2) A person may be appointed by IPART as both a technical expert and an auditor.
36
Engagement of technical experts—the Act, s 55A(2)(e)
36 Engagement of technical experts—the Act, s 55A(2)(e)
36 Engagement of technical experts—the Act, s 55A(2)(e)
(1) IPART may require a contingency plan to be prepared or tested with the assistance of—
(a) for a contingency plan prepared by an essential service provider—a specific technical expert, or
(b) for a contingency plan prepared by an essential service provider or last resort provider—a technical expert from a panel of technical experts selected by IPART.
(2) The technical expert may make recommendations about the contingency plan to the essential service provider, the last resort provider or IPART.
37
Preparation of contingency plans—the Act, s 55A(2)(a)
37 Preparation of contingency plans—the Act, s 55A(2)(a)
37 Preparation of contingency plans—the Act, s 55A(2)(a)
(1) The last resort provider must prepare a contingency plan for an essential service.
(2) Despite subsection (1), the essential service provider may prepare the contingency plan if the essential service provider gives notice to IPART, in the form and way approved by IPART, within 15 business days of the designation of the last resort provider.
38
Approval of contingency plans—the Act, s 55A(2)(a) and (c)
38 Approval of contingency plans—the Act, s 55A(2)(a) and (c)
38 Approval of contingency plans—the Act, s 55A(2)(a) and (c)
(1) A nominated provider for an essential service must submit a contingency plan to IPART for approval—
(a) within 6 months after the operational approval for the essential infrastructure is granted, or
(b) within a longer period approved by IPART.
(2) IPART may, by written notice to both the last resort provider and essential service provider, approve a contingency plan with or without modification.
(3) The nominated provider must, at intervals determined by IPART by written notice to the nominated provider, review and resubmit the contingency plan to IPART for approval.
(4) The nominated provider may, at any time, modify and resubmit the contingency plan to IPART for approval.
(5) In this section—
nominated provider means the last resort provider or essential service provider who prepares the contingency plan.
39
Content of contingency plans—the Act, s 55A(2)(b)
39 Content of contingency plans—the Act, s 55A(2)(b)
39 Content of contingency plans—the Act, s 55A(2)(b)
(1) A contingency plan must identify the following—
(a) the essential service, including—
(i) the essential infrastructure that will be required to maintain the essential service if there is a declared failure, and
(ii) other infrastructure operated by a third party to which water or sewerage services are connected that will be required to maintain service to customers if there is a declared failure,
(b) the customers to whom the essential service is provided.
(2) The contingency plan must also include the following—
(a) the information and systems that will be reasonably required by a last resort provider to continue to provide the essential service if there is a declared failure, and how the last resort provider will access the information and systems,
(b) the actions required by the failed licensee, or an administrator acting for the failed licensee, to facilitate the transfer of customer information to ensure minimal interruption to the operation of the essential service,
(c) arrangements under which staff of the essential service provider may assist the last resort provider,
(d) procedures for notifying the ombudsman appointed under an approved ombudsman scheme and IPART when the information, including customer information, has been transferred to the last resort provider,
(e) the requirements for giving written updates to IPART on the implementation of the contingency plan, including the content and timing of the updates,
(f) the information required to be given to a customer with the bill first required to be sent to the customer after the declared failure, including the following—
(i) details of the declared failure,
(ii) a description of the role of the last resort provider,
(iii) the contact details of the last resort provider,
(iv) the contact details of the approved ombudsman scheme,
(v) the last resort contract charges,
(vi) information about the last resort contract conditions and how customers may obtain a copy of the last resort contract conditions,
(g) if the last resort provider is a public water utility—the last resort contract conditions within the meaning of the Act, section 56C.
(3) The information required under subsection (2) may be included in a contingency plan in the form of a directory that enables the last resort provider to access the information.
(4) In this section—
customer information includes the following—
(a) billing addresses and customer contact details,
(b) information about customers, or persons living at the customer’s property, with critical health needs,
(c) information about customers with payment difficulty or special payment arrangements.
last resort contract charges and last resort contract conditions have the same meaning as in the Act, section 56C.
40
Assistance by essential service providers—the Act, s 55A(2)(a)
40 Assistance by essential service providers—the Act, s 55A(2)(a)
40 Assistance by essential service providers—the Act, s 55A(2)(a)
(1) This section applies if a contingency plan is to be prepared by the last resort provider.
(2) A provider of an essential service for which a last resort provider has been designated must facilitate the preparation and review of the contingency plan by the last resort provider, including by—
(a) providing information that the last resort provider reasonably requires in a timely way, and
(b) giving the last resort provider a reasonable opportunity to inspect infrastructure and systems.
(3) The essential service provider must notify the last resort provider of a change in systems or processes if the change—
(a) may require modification of the contingency plan, or
(b) is a change the last resort provider reasonably needs to be aware of.
(4) The essential service provider must facilitate the conduct by the last resort provider of required exercises to test the operation of the approved contingency plan.
41
Consultation with last resort providers—the Act, s 55A(2)(a)
41 Consultation with last resort providers—the Act, s 55A(2)(a)
41 Consultation with last resort providers—the Act, s 55A(2)(a)
If a contingency plan is to be prepared by the essential service provider, the essential service provider must consult with the last resort provider about the contingency plan.
42
Request for assistance in preparation and review of contingency plans—the Act, s 55A(3)
42 Request for assistance in preparation and review of contingency plans—the Act, s 55A(3)
42 Request for assistance in preparation and review of contingency plans—the Act, s 55A(3)
The following are prescribed as a person who may make a written request under the Act, section 55A(3)—
(a) the last resort provider, in relation to a contingency plan prepared by the last resort provider,
(b) the essential service provider, in relation to a contingency plan prepared by the essential service provider,
(c) a technical expert appointed by IPART under section 35, in relation to a contingency plan prepared by the last resort provider or essential service provider.
43
Testing of contingency plans—the Act, s 55A(2)(a)
43 Testing of contingency plans—the Act, s 55A(2)(a)
43 Testing of contingency plans—the Act, s 55A(2)(a)
(1) A contingency plan may require testing of the operation of the contingency plan.
(2) IPART may direct a last resort provider to test the operation of a contingency plan prepared by the last resort provider.
(3) IPART may direct an essential service provider to test the operation of a contingency plan whether the plan is prepared by the essential service provider or last resort provider.
(4) Testing of the operation of a contingency plan may be carried out as part of an audit.
Division 4
Contingency planning costs—the Act, s 55A(2)(g)
Division 4 Contingency planning costs—the Act, s 55A(2)(g)
Division 4 Contingency planning costs—the Act, s 55A(2)(g)
44
Essential service provider must pay last resort provider’s contingency planning costs
44 Essential service provider must pay last resort provider’s contingency planning costs
44 Essential service provider must pay last resort provider’s contingency planning costs
(1) The essential service provider must pay the last resort provider the reasonable costs incurred by the last resort provider in complying with this part.
(2) The last resort provider may submit a written request to the essential service provider specifying the amount.
(3) If the essential service provider does not pay the last resort provider within 28 days of the written request, either the last resort provider or the essential service provider may apply to IPART for a determination of the amount.
(4) The essential service provider must pay the amount determined by IPART to the last resort provider within 28 days of the determination.
45
Essential service provider must pay costs of technical experts
45 Essential service provider must pay costs of technical experts
45 Essential service provider must pay costs of technical experts
(1) IPART may, by written notice, require an essential service provider to pay a technical expert an amount for the reasonable costs incurred by the technical expert in the preparation or testing of a contingency plan.
(2) The essential service provider must pay the technical expert within—
(a) 28 days after IPART gives written notice of the amount, or
(b) another period agreed between the essential service provider and the technical expert.
Part 6
Connecting development to infrastructure—the Act, Sch 2, cl 3A
Part 6 Connecting development to infrastructure—the Act, Sch 2, cl 3A
Part 6 Connecting development to infrastructure—the Act, Sch 2, cl 3A
46
Definitions
46 Definitions
46 Definitions
In this part—
certificate of compliance means a certificate issued by a registered operator for water industry infrastructure in relation to development certifying—
(a) the reasonable requirements of the registered operator in relation to the provision of water or sewerage services to the development have been complied with, or the registered operator did not impose a requirement, and
(b) the registered operator will provide water or sewerage services to the development.
developer means a person who applies for a development authorisation.
development means an activity to which an application for development authorisation relates.
Consent authority to notify registered operator of development applications
47 Consent authority to notify registered operator of development applications
47 Consent authority to notify registered operator of development applications
(1) A consent authority must give the registered operator for water industry infrastructure written notice of an application for a development authorisation received by the consent authority if the consent authority considers the development would significantly affect the operation of the infrastructure.
(2) Without limitation, development significantly affects the operation of water industry infrastructure if it may—
(a) increase the demand for water supplied by the infrastructure, or
(b) increase the amount of sewage to be removed by the infrastructure, or
(c) damage or interfere with, or adversely affect the operation of, the infrastructure.
(3) The consent authority is not required to give notice under subsection (1) if the consent authority—
(a) refuses the application for the development authorisation, or
(b) approves the application and imposes a condition on the development authorisation that the developer must obtain a certificate of compliance from the registered operator.
(4) The consent authority must take into account submissions from the registered operator in relation to an application for a development authorisation that has been notified under subsection (1) in deciding whether to—
(a) approve the application for the development authorisation, or
(b) impose a condition on the development authorisation.
(5) Subsection (4) does not apply if—
(a) the consent authority imposes a condition on the development authorisation that the developer must obtain a certificate of compliance from the registered operator, or
(b) the consent authority does not receive submissions from the registered operator within 21 days after the notice was given to the registered operator.
(6) In this section—
consent authority means a person or body responsible for determining an application for a development authorisation.
48
Applications for certificates of compliance
48 Applications for certificates of compliance
48 Applications for certificates of compliance
(1) A developer who proposes to connect development to water industry infrastructure operated, or to be operated, under the Act may apply to the registered operator for the infrastructure for a certificate of compliance.
(2) An application may be made whether or not obtaining a certificate of compliance is a condition of the development authorisation.
(3) The application must be accompanied by—
(a) a copy of the application for the development authorisation, or
(b) if the application for the development authorisation has been approved—a copy of the development authorisation.
49
Requirements imposed on developer before certificate of compliance issued
49 Requirements imposed on developer before certificate of compliance issued
49 Requirements imposed on developer before certificate of compliance issued
(1) Before determining an application for a certificate of compliance, the registered operator may, by written notice (a requirements notice), require the developer to do one or more of the following—
(a) pay a specified amount to the registered operator to cover the whole or part of the relevant costs as assessed by the registered operator,
(b) enter into an agreement providing for one or more of the following—
(i) the payment of the amount to the registered operator or as directed by the registered operator,
(ii) the construction, or the construction and manner of construction, of works for the purposes of connecting the development to the water industry infrastructure,
(iii) the transfer of works to the registered operator,
(c) provide reasonable security, in a form approved by the registered operator, for performance of an agreement under paragraph (b),
(d) additional or ancillary matters necessary to give effect to a requirement under paragraphs (a)–(c).
(2) The registered operator may withdraw a requirement contained in a notice under this section and the requirement is taken to have not been made.
(3) In this section—
relevant costs means the costs determined by the registered operator under section 50.
50
Determination of costs for requirements notices
50 Determination of costs for requirements notices
50 Determination of costs for requirements notices
(1) The registered operator must determine the costs of the following—
(a) the cost of water industry infrastructure that benefits or is available to the land, if the infrastructure is or will be constructed—
(i) by or on behalf of the registered operator or a predecessor of the registered operator, or
(ii) at the request of the registered operator or a predecessor of the registered operator, or
(iii) under an agreement with the registered operator or a predecessor of the registered operator,
(b) the cost of expanding the registered operator’s water industry infrastructure as a result of the development,
(c) the investment costs incurred by the registered operator or a predecessor of the registered operator and by developers in relation to the existing and proposed water industry infrastructure referred to in paragraphs (a) and (b).
(2) The registered operator must determine the costs under subsection (1)(a) based on net present value, historical cost or other appropriate basis.
(3) The registered operator may also have regard to expected operating costs and revenues in determining the costs under subsection (1)(a) if the registered operator considers it appropriate.
51
Issue of certificates of compliance
51 Issue of certificates of compliance
51 Issue of certificates of compliance
(1) A registered operator may issue a certificate of compliance to a developer without serving a requirements notice on the developer.
(2) A registered operator must issue a certificate of compliance to the developer if satisfied a requirements notice given to the developer has been complied with.
(3) A registered operator must, at the developer’s request, issue a certificate of compliance to the developer if, within the relevant period—
(a) a certificate of compliance has not been issued to the developer, and
(b) a requirements notice has not been given to the developer.
(4) A certificate of compliance may, instead of being issued in relation to all of the development, be issued progressively in relation to a stage of the development.
(5) A certificate of compliance may be issued to replace a certificate of compliance previously granted.
(6) In this section—
relevant period means—
(a) 60 days after the developer applies for a certificate of compliance, or
(b) a further period approved by IPART and notified to the developer within the 60 days.
52
Conditions of certificates of compliance
52 Conditions of certificates of compliance
52 Conditions of certificates of compliance
(1) A certificate of compliance may be issued unconditionally or subject to reasonable conditions.
(2) Without limitation, a certificate of compliance may be issued subject to a condition requiring an agreement entered into under a requirements notice to be complied with.
(3) A developer does not comply with a requirement to obtain a certificate of compliance until the developer complies with the conditions imposed on the certificate.
(4) An unconditional certificate of compliance may be issued to replace a certificate of compliance previously granted subject to conditions.
53
Recovery of costs
53 Recovery of costs
53 Recovery of costs
(1) Money owing to a person under a requirements notice is recoverable by the person as a debt in a court of competent jurisdiction.
(2) This section does not affect a power or remedy the person otherwise has.
Part 7
Application audits and compliance audits—the Act, Sch 2, cl 5A
Part 7 Application audits and compliance audits—the Act, Sch 2, cl 5A
Part 7 Application audits and compliance audits—the Act, Sch 2, cl 5A
54
Appointment and engagement of auditors
54 Appointment and engagement of auditors
54 Appointment and engagement of auditors
(1) IPART may, by written notice, appoint a person, including a member of staff of IPART, as an auditor for—
(a) audits generally, or
(b) a specified audit or class of audits.
(2) An audit must be undertaken by an auditor appointed by IPART under subsection (1).
(3) IPART may by written notice—
(a) engage an auditor to undertake an audit, or
(b) direct the applicant or the licensee subject to the audit to engage a specified auditor or an auditor from a panel of auditors to undertake an audit.
(4) The written notice may specify the following—
(a) the scope of the audit,
(b) the functions of the auditor,
(c) limitations on the functions of the auditor.
55
Functions of auditors
55 Functions of auditors
55 Functions of auditors
The functions of an auditor undertaking an audit are the following—
(a) to review, assess or advise on the matters specified by IPART,
(b) to report to IPART about the review, assessment or advice under paragraph (a),
(c) other functions conferred by or under the Act.
56
Fees for audits
56 Fees for audits
56 Fees for audits
(1) IPART may charge the applicant or the licensee subject to the audit (the audit target) a reasonable fee for an audit undertaken by an auditor engaged by IPART under section 54(3)(a).
(2) IPART may defer consideration of an application until the fee under subsection (1) is paid.
(3) The fee under subsection (1) is recoverable by IPART as a debt in a court of competent jurisdiction.
(4) The fee for an audit undertaken by an auditor engaged by the audit target under section 54(3)(b) is payable by the audit target.
57
IPART to consider application audit
57 IPART to consider application audit
57 IPART to consider application audit
If an application audit is undertaken in relation to an application, IPART must consider the audit in exercising IPART’s functions under the Act or this regulation in relation to the application to which the audit relates.
58
Entry to premises
58 Entry to premises
58 Entry to premises
(1) An auditor may accompany an inspector who enters premises under the Act, Part 7A for the purpose of exercising the auditor’s functions as an auditor.
(2) This section does not prevent an auditor from—
(a) entering or remaining on premises, or doing anything else on premises, with the consent of the occupier of the premises, or
(b) entering or remaining in a public place while the place is open to the public.
(3) In this section—
auditor includes an individual employed or otherwise engaged by the auditor and notified in writing to IPART.
Part 8
Miscellaneous
Part 8 Miscellaneous
Part 8 Miscellaneous
59
Regulatory functions of IPART
59 Regulatory functions of IPART
59 Regulatory functions of IPART
For the Act, section 90(1)(e), IPART’s functions under the Act, sections 55 and 57 are prescribed.
60
Time limit for determination of applications
60 Time limit for determination of applications
60 Time limit for determination of applications
(1) For the Act, section 93B(2), the fixed period is—
(a) for an application for a scheme approval—90 days from the day on which the application is lodged with IPART, or
(b) otherwise—60 days from the day on which the application is lodged with IPART.
(2) For the Act, section 93B(4), the following are not to be counted in the fixed period—
(a) the period from 1 March 2024 until the end of 1 March 2025,
(b) a public holiday,
(c) the period declared by the Premier as the Christmas closedown period,
(d) a period provided to the applicant or other persons to make submissions about the application to IPART,
(e) a period during which an application audit is undertaken,
(f) a period during which IPART is exercising functions as a determining authority under the Environmental Planning and Assessment Act 1979, Division 5.1, Subdivision 2, in relation to the application, but not more than 30 days,
(g) a period during which IPART is exercising functions as a determining authority under the Environmental Planning and Assessment Act 1979, Division 5.1, Subdivision 3, in relation to the application.
61
Water restrictions—the Act, Sch 2, cl 6
61 Water restrictions—the Act, Sch 2, cl 6
61 Water restrictions—the Act, Sch 2, cl 6
(1) The Minister may, by notice published in the Gazette, regulate or restrict the use, supply or consumption of water supplied by a registered operator or registered retailer, including by regulating or restricting the following—
(a) the purposes for which water may be used,
(b) the times when water may be used,
(c) the quantities of water that may be used,
(d) the means or methods of the use of water.
(2) The Minister may issue a notice only if the Minister considers it is necessary because—
(a) there is a drought or other emergency, or
(b) it is in the public interest and for the purpose of maintaining water supply.
(3) A notice may apply to—
(a) the whole of the area of operations of a registered operator or registered retailer, or
(b) a specified part of the area of operations.
(4) A notice takes effect on—
(a) the day the notice is published in the Gazette, or
(b) a later day specified in the notice.
(5) A person must not use or consume water in contravention of a notice under this section.
Maximum penalty for subsection (5)—
(a) for a corporation—50 penalty units, or
(b) for an individual—5 penalty units.
62
Extension of local water restrictions orders—the Act, Sch 2, cl 6(c)
62 Extension of local water restrictions orders—the Act, Sch 2, cl 6(c)
62 Extension of local water restrictions orders—the Act, Sch 2, cl 6(c)
(1) The Minister may, by notice published in the Gazette, declare that a local water restrictions order applies to the use or consumption of water supplied by a registered operator or registered retailer in a particular area in the same way as it applies to the use or consumption of water supplied by the public water utility in that area or another area.
(2) A declaration must not be made if the registered operator or registered retailer derives its water from a different water source to the water source from which the public water utility derives its water.
(3) Subsection (2) does not apply if the Minister is satisfied the circumstances giving rise to the local water restrictions order apply to both water sources.
(4) A person must not use or consume water in contravention of a local water restrictions order as applied by this section.
Maximum penalty—
(a) for a corporation—50 penalty units, or
(b) for an individual—5 penalty units.
(5) This section does not limit section 61.
(6) In this section—
local water restrictions order means an order that restricts the use or supply of water by a public water utility made under the following Acts and as in force from time to time—
Registered operators and registered retailers may restrict water supply to customers—the Act, Sch 2, cl 6(c)
63 Registered operators and registered retailers may restrict water supply to customers—the Act, Sch 2, cl 6(c)
63 Registered operators and registered retailers may restrict water supply to customers—the Act, Sch 2, cl 6(c)
If a notice under section 61 or 62 is in force and applies to the use or consumption of water by customers of a registered operator or registered retailer, the registered operator or registered retailer may restrict the supply of drinking water or recycled water to a customer if satisfied that the customer is or may be contravening section 61(5) or 62(4).
64
Penalty notices
64 Penalty notices
64 Penalty notices
(1) For the Act, section 82—
(a) each offence created by a provision specified in Schedule 3, Column 1 is an offence for which a penalty notice may be issued, and
(b) the amount payable for the penalty notice is the amount specified in Column 2 or 3.
(2) If the provision is qualified by words that restrict its operation to limited kinds of offences or to offences committed in limited circumstances, the penalty notice may be issued only for—
(a) that limited kind of offence, or
(b) an offence committed in those limited circumstances.
What are your obligations for damage, maintenance and repair?
Part 9 What are your obligations for damage, maintenance and repair?
Part 9 What are your obligations for damage, maintenance and repair?
Part 10
Who reads your water meter and what if it isn’t working properly?
Part 10 Who reads your water meter and what if it isn’t working properly?
Part 10 Who reads your water meter and what if it isn’t working properly?
Part 11
When can the operator or retailer enter your property?
Part 11 When can the operator or retailer enter your property?
Part 11 When can the operator or retailer enter your property?
Part 12
What information must the operator or retailer give you?
Part 12 What information must the operator or retailer give you?
Part 12 What information must the operator or retailer give you?
Part 13
What information must you give the operator or retailer?
Part 13 What information must you give the operator or retailer?
Part 13 What information must you give the operator or retailer?
Part 14
What else do you need to know?
Part 14 What else do you need to know?
Part 14 What else do you need to know?
Part 15
Dictionary
Part 15 Dictionary
Part 15 Dictionary
clause 5
24-hour faults line means a 24-hour phone number for reporting faults to the operator, finding out information about faults in the scheme and seeking emergency assistance from the operator.
critical health needs, in relation to you or a person who lives at your property, means a person who needs a continuous drinking water service to operate a life support machine or for other critical health needs.
operator means a registered operator.
overdue amount has the same meaning as in clause 36.
property includes premises and land.
retailer means a registered retailer.
scheme means the water industry infrastructure operated by the operator.
scheme infrastructure—see clause 6.
services means the water or sewerage services provided by the scheme to your property by the operator.
standard contract charges means the charges you must pay for water or sewerage services provided to your property under this contract.
Schedule 5 Savings, transitional and other provisions
Schedule 5 Savings, transitional and other provisions
Source text: opening excerpt
Sourced from legislation.nsw.gov.au, CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
Part 1 Preliminary
1 Name of regulation
1 Name of regulation
1 Name of regulation
This regulation is the Water Industry Competition (General) Regulation 2024.
2 Commencement
2 Commencement
2 Commencement
This regulation commences on 1 March 2024.
Note—
This regulation repeals and replaces the Water Industry Competition (General) Regulation 2021.
3 Definitions
3 Definitions
3 Definitions
(1) In this regulation—
certificate of compliance, for Part 6—see section 46.
critical health needs—see subsection (2).
customer contract means the deemed customer contract, including modifications and exclusions made by IPART under section 21.
Note—
The terms and conditions of the deemed customer contract are set out in this regulation, Schedule 4.
developer, for Part 6—see section 46.
development, for Part 6—see section 46.
development authorisation, for Part 6—see section 46.
investigated monopoly supplier, for Part 4, Division 2—see section 25.
IPART Act means the Independent Pricing and Regulatory Tribunal Act 1992.
issues paper, for Part 4, Division 2—see section 25.
public hearing, for Part 4, Division 2—see section 25.
public holiday means a day appointed under the Public Holidays Act 2010 or another Act as a public holiday.
requirements notice, for Part 6—see section 46.
significant methodological change, for Part 4, Division 2—see section 25.
Standard Instrument means the standard instrument prescribed by the Standard Instrument (Local Environmental Plans) Order 2006.
the Act means the Water Industry Competition Act 2006.
Note—
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.
(2) In this regulation, a person has critical health needs if the person needs a continuous drinking water service to operate a life support machine or for other critical health needs.
Establishes last resort (failover) arrangements for essential infrastructure, including designation criteria, contingency planning, testing and cost recovery rules between essential service providers and last resort providers (Part 5, ss 33-45). IPART may appoint and engage technical experts and auditors for these plans (ss 35-36, 54-56).
Creates a practical regime for connecting developments to registered operator infrastructure, including requirements notices, cost determination methods, certificates of compliance and recovery of charges as debts (Part 6, ss 46-53).
Sets operational timelines, reporting, auditing and enforcement tools for IPART, including auditor appointment and fee recovery, entry powers for auditors with inspectors, time limits for IPART decisions and penalty notices for specified offences (Part 7; Part 8, ss 54-66; Schedule 3).
Requires specific consumer and retail obligations that licence-holders must meet, for example publication of the deemed contract summary, customer complaints and payment-difficulty processes, family violence policy, translation information, meter installation and reading frequency, and water quality systems aligned to national guidelines (Schedule 2, Parts 1-3; Schedule 4).
The regulation therefore operationalises the Act by stating who must do what, when and how. The text repeatedly identifies who decides , the Minister and IPART make regulatory determinations and approvals (for example, scheme and operational approvals, designation of last resort providers, approval of contingency plans), while licensees and registered operators/retailers must implement systems, provide information and meet customer-facing obligations (see ss 11-12, 33-41, Schedule 2 and Schedule 4). Penalties and administrative fees are set out for non-compliance (s 18; s 64; Schedule 3). The regulation also contains transitional provisions for licences and interim schemes during the transition year to 1 March 2025 (Schedule 5).
The regulation contains its own internal “purpose” or operational notes as matters of fact, for example prescribing the Australian Drinking Water Guidelines and Australian Guidelines for Water Recycling as the national safety guidelines to be complied with (s 5), and identifying that IPART must publish fees and issues papers on its website (ss 21, 27, 30). Those are claims by the instrument about regulatory means; the text then assigns duties, enforcement tools and cost allocation that give those means force (for example, mandatory water quality systems in Schedule 2, cl 8; contingency plan cost recovery in ss 44-45).
This description repeats what the instrument changes mechanically. The remainder of this deep dive tests those mechanics against incentives, cost allocation, compliance burdens, and likely implementation frictions, referencing the specific provisions.
Main concepts
The regulation organises the water-market framework around a limited set of enduring concepts and mechanisms that govern regulatory authorisations, customer relations, contingency preparedness, investigation of monopoly pricing and exclusions. The main concepts are as follows, with the section references that define them.
Licence and approval architecture. IPART and the Minister operate within a two-tier approval-licence framework. Scheme approvals and operational approvals interact with operator and retailer licences: IPART must be satisfied that licences authorise proposed activities when making scheme or operational approvals (ss 10-12). Licence conditions are prescribed in Schedule 2 and are imposed on operator and retailer licences (s 14).
Deemed customer contract. For regulated schemes, small retail customers are automatically on a standardised deemed customer contract set out in Schedule 4 (s 19). That contract contains detailed obligations for operators and retailers (service levels, bill content, dispute and payment-difficulty processes, meter rules, disconnection protections) and applies unless modified by IPART under a joint application by operator and retailer or by written agreement with the customer (s 21; Schedule 4, cl 3).
Exclusions and scope. The regulation prescribes which infrastructure is captured by Part 2 of the Act (ss 6-7) and numerous exclusions (s 8; Schedule 1). Exclusions include certain stormwater-only systems, roof-water systems provided free for non-potable use, infrastructure owned by customers reticulating internally, infrastructure serving single dwelling houses or dual occupancies, interstate-sourced infrastructure, and infrastructure serving land managed by Aboriginal organisations (Schedule 1 cl 9-17).
Consumer protections and information obligations. Licence-holders must publish and supply prescribed customer information, complaint-handling and payment-difficulty processes, a family violence policy, translation services and the deemed contract summary (Schedule 2, Part 3 clauses 12-17; Schedule 4 Parts 12-14). Metering rules (installation, testing and reading frequency) are imposed (Schedule 2, Part 1 cl 1; Schedule 4 cl 45).
Contingency planning and last resort providers. The Minister may designate last resort providers and IPART oversees contingency plans, technical experts and testing (Part 5, ss 33-43). Key content for contingency plans is prescribed, including customer information transfer, access to systems and information, notification to ombudsman and IPART, and last resort contract charges and conditions (ss 37-39).
Pricing investigations for monopoly services. Where monopoly services are declared, IPART conducts a structured investigation process modelled on the IPART Act Part 3, with private/public consultation, issues papers, public hearings, draft and final reports and explicit requirements to publish submissions and reasons (Part 4, ss 24-32).
Cost allocation and recovery tools. The regulation specifies mechanisms for recovering costs in a number of contexts. Developers can be required to pay amounts determined by the registered operator before a certificate of compliance is issued (Part 6, ss 48-53); essential service providers must pay reasonable contingency planning costs and technical expert fees (ss 44-45); IPART may charge audit fees and recover them as debts (Part 7, ss 54-56).
Enforcement through notices, audits and monetary penalties. IPART can appoint auditors, require audits and defer application determinations until audit fees are paid (Part 7, ss 54-57). The Minister can restrict water use via Gazette notice (s 61); breach penalties are listed in Schedule 3 and certain defaults carry fixed penalties and recovery remedies (s 18; s 64; Schedule 3).
These concepts interact. For example, the deemed customer contract imposes protections that affect how operators design contingency plans and billing processes (Schedule 4; ss 37-39). IPART’s investigatory duties over pricing (Part 4) sit against licence conditions that require operators to implement asset and water quality management systems (Schedule 2, Part 2), generating both compliance obligations and reviewable regulatory outcomes.
Mechanically, the regulation privileges centralised oversight by IPART for licensing, approvals, audits and pricing methodology consultation and gives the Minister policy levers for emergency water restrictions and last resort designation. Licensees remain responsible for operational implementation, customer-facing processes and meter management. The regulation therefore allocates decision rights between IPART, the Minister and regulated businesses in ways that produce predictable administrative interactions but also leave operational and compliance costs with operators, retailers and developers.
Who it affects
The regulation names and allocates duties and costs to distinct private and public actors. The main affected parties and the concrete duties that attach to them are:
Registered operators. They are the persons registered as operators under the Act. Obligations include preparing and complying with asset management plans or systems (Schedule 2, cl 7), water quality management systems where they supply drinking/recycled water (Schedule 2, cl 8), sewage management plans where applicable (Schedule 2, cl 9), installing and maintaining water meters (Schedule 2, cl 10), transferring customer information on change events within five days (Schedule 2, cl 11), and participating in contingency planning with last resort providers (Part 5, ss 37-41). Operators must also notify IPART and others about incidents that threaten water quality or public health immediately (Schedule 2, cl 3).
Registered retailers. They bill and interact with customers; duties include publishing the deemed customer contract summary and standard contract charges on their website and giving copies to customers annually (Schedule 2, cl 12), maintaining complaints and payment-difficulty procedures consistent with standards (Schedule 2, cl 14-15), running family violence policies (Schedule 2, cl 16), supplying certain notices at service commencement (Schedule 4, cl 53), sending reminder and warning notices before disconnection (Schedule 4, cl 37-38), and transferring customer data within prescribed timeframes on operator/retailer change events (Schedule 2, cl 22).
Small retail customers and developers. Small retail customers automatically fall under the deemed customer contract when served by a regulated scheme (Schedule 4, cl 2). The contract sets rights and obligations on billing, physical access for meter reading, payment-difficulty processes, dispute resolution via the Energy and Water Ombudsman NSW and limited compensation for service failures (Schedule 4, Parts 3-11). Developers applying to connect to registered operator infrastructure may be issued requirements notices and must comply with cost contributions, agreements and security requirements before a certificate of compliance is granted (Part 6, ss 48-52).
IPART. The Independent Pricing and Regulatory Tribunal has expanded procedural duties: preparing issues papers and holding public hearings for monopoly pricing investigations (Part 4, ss 24-32), approving contingency plans and appointing technical experts and auditors (Part 5, ss 35-39; Part 7, ss 54-57), determining fees for modifications to the deemed customer contract (s 21), and recording licensee information on the IPART register (Schedule 2, cl 4). IPART also has specific consultation and publication duties.
The Minister. The Minister has powers to designate last resort providers, split composite licences, publish water restriction notices in the Gazette, and revoke last resort designations upon application (ss 17, 33-34, 61). The Minister also prescribes certain policies that are to be regarded as matters to have regard to, by listing NSW strategies (s 9).
Public water utilities and other government agencies. The regulation gives a role to public water utilities, including the ability to act as last resort providers and to receive transferred schemes (Schedule 1 and Part 5). NSW Government agencies are excluded from Part 2 when infrastructure is constructed or operated for or on behalf of an agency (Schedule 1, cl 5).
Technical experts, auditors and appointed panels. IPART may appoint and engage technical experts and auditors; costs for technical experts are payable by essential service providers when required (ss 35-36; ss 54-56; s 45).
Who pays? The regulation sets out specific cost allocations. Developers may be required to pay for connection or augmentation costs via requirements notices and the registered operator determines the amount using net present value, historical cost or other bases (Part 6, ss 49-50). Essential service providers must pay reasonable costs incurred by last resort providers in preparing contingency plans, and may be required to pay technical experts on IPART’s notice (ss 44-45). IPART may charge and recover audit fees from applicants or licensees (s 56). Customers bear normal contract charges and may be charged additional fees for connection, restoration, meter relocation, dishonoured payments and unauthorised connections; retailers must publish indicative amounts (Schedule 4, cl 26).
Who decides? The Minister sets policy levers and authorises Gazette notices (s 61). IPART determines licensing, approvals, audit appointments, pricing investigation processes and fee publication (ss 11-12; Part 4; Part 7). Operators and retailers make operational decisions but subject to licence conditions, directions and IPART review (Schedule 2; s 14).
This allocation of duties produces behaviour changes: developers will be required to engage earlier with registered operators for certificates of compliance (Part 6); operators and retailers must professionalise compliance (asset management plans, water quality systems, customer processes) and maintain accessible public information; essential service providers must budget for last resort-contingency costs and information-sharing; IPART will be the focal point for disputes and pricing determinations. The regulation also allocates enforcement exposure to private entities via penalty notices and recoverable audit or planning costs.
Key duties and rights
The regulation sets out numerous specific duties and corresponding rights for licence-holders, customers, IPART and the Minister. Below are the principal obligations with the precise relevant provisions.
Duties upon licence-holders (operators and retailers)
Licence conditions. Every licence is subject to the conditions in Schedule 2 (s 14). Those conditions are extensive and set operational duties, for example:
Meter duties: ensure meters are properly maintained, periodically tested, read at intervals no greater than 4 months and that meter readings are sent in writing to the registered retailer (Schedule 2, Part 1 cl 1).
Information provision: provide information to the Minister or IPART when required and immediately notify IPART and relevant public health authorities of incidents threatening water quality or public health (Schedule 2, cl 2-3).
Disclosure and register entries: licence-holders must permit certain matters to be recorded on the IPART register and permit inter-agency disclosure (Schedule 2, cl 4).
Asset, water quality and sewage management. Operators must develop, implement and regularly review an asset management plan or system consistent with AS ISO 55001:2014 where relevant (Schedule 2, cl 7). Water quality management systems for drinking and recycled water must be consistent with the Australian Drinking Water Guidelines and the Australian Guidelines for Water Recycling respectively and be regularly reviewed (Schedule 2, cl 8). Sewage management plans are required where infrastructure conveys, treats or disposes of sewage (Schedule 2, cl 9).
Customer-facing obligations. Retailers must publish the deemed customer contract summary and standard contract charges, implement complaints and payment-difficulty procedures consistent with AS 10002:2022, maintain family violence policies, provide translation service information in six specified languages and give specific notices at service commencement and when changes occur (Schedule 2, Part 3 cl 12-17; Schedule 4, cl 53-54).
Transfer and confidentiality of customer information. Licensees must take reasonable steps to give customer information to a new licensee, public water utility or other person specified within 5 days of certain events (Schedule 2, cl 11; cl 22). Customer information includes medical-critical needs details and other personal data (Schedule 2, cl 11; Schedule 4, cl 39(4)).
Duties on developers and consent authorities
Developers may need certificates of compliance before connection (Part 6, ss 47-53). Registered operators can issue requirements notices requiring payment, construction agreements, transfer of works or security, and determine the relevant costs based on NPV, historical cost or other bases (ss 48-50). Consent authorities must notify registered operators of development applications likely to significantly affect infrastructure and consider operator submissions, subject to exceptions (s 47).
Contingency and last resort duties
Contingency planning: nominated providers must submit contingency plans to IPART within 6 months of operational approval or a period approved by IPART, and the plan must identify essential infrastructure, customers, information and systems needed to continue service, arrangements for staff assistance, notification procedures to the ombudsman and IPART, and the information to be supplied to customers on first bills after a declared failure (Part 5, ss 37-39).
Cost recovery: essential service providers must pay reasonable costs incurred by last resort providers in complying with contingency planning requirements and IPART may determine amounts if disputes arise; essential service providers must also pay technical experts where required by IPART (ss 44-45).
Rights and safeguards for customers
Deemed customer contract entitlements. Schedule 4 defines rights including minimum water pressure standards (cl 12), water quality obligations (cl 10-11), protections for customers with critical health needs (cl 14), limits on disconnection for non-payment and procedural requirements before restriction or disconnection (cl 39-41), rebates for certain failures (cl 21), and detailed billing requirements (cl 28).
Review and dispute mechanisms. Customers can seek internal reviews from licensees, then escalate to the Energy and Water Ombudsman NSW (Schedule 4, cl 34, cl 65). A failure by a licensed operator or retailer to determine an internal review within 20 business days is treated as a refusal (s 23).
Protections in disconnection. The regulation prohibits disconnecting or reducing drinking water below basic sustenance for non-payment and for customers with critical health needs, sets timing and notice rules for disconnection and requires the operator or retailer to take best endeavours to contact customers prior to unplanned interruptions (Schedule 4, cl 39-41).
Regulatory investigation and audit powers
IPART’s investigatory process for monopoly pricing is specified in detail. Part 4 modifies the IPART Act, Part 3, applies procedures for issues papers, public hearings and draft and final reports, and insists on public availability of key documents (ss 24-32).
IPART can appoint auditors, direct that applicants or licensees engage specified auditors, set audit scope, and charge and recover audit fees (Part 7, ss 54-56). Auditors may accompany inspectors entering premises under the Act (s 58).
Monetary penalties and administrative enforcement
Penalty notices: s 64 and Schedule 3 list offences for which penalty notices may be issued and prescribe the amounts for corporations and individuals. Examples include breaches leading to penalty units for water restriction contraventions (ss 61-62; Schedule 3).
Default penalty for annual fees and returns set at $5,500 for the Act’s section 8N(4) default (s 18).
Recovery of money owing under a requirements notice is specifically recoverable as a debt in court (s 53).
These duties and rights create a structured compliance universe. Operators and retailers must invest in systems, policies and processes that span technical asset management, water quality compliance and customer engagement. Developers face potential upfront contributions or agreement obligations before a certificate of compliance will issue. IPART and the Minister hold decision rights and enforcement options. Customers gain detailed minimum protections, but these are conditional on procedures such as notification, proof of critical health needs and the internal dispute processes set out in the deemed customer contract.
Penalties and enforcement
The regulation creates a mixed enforcement architecture made up of civil debt recovery tools, administrative monetary penalties via penalty notices, audit and inspection powers, and statutory duties that can lead to licence-based consequences enforced by IPART or the Minister. The key enforcement mechanisms and penalties are these.
Penalty notices and specified monetary fines
The regulation designates specific offences as penalty notice offences under s 64. Schedule 3 lists those offences, splitting penalties for corporations and individuals. For example, contravening water restriction notices under section 61(5) or extension orders under section 62(4) attracts penalty notices of $440 for corporations and $220 for individuals (Schedule 3). The Schedule also references offences under the Act which are made penalty notice offences by the regulation (Schedule 3, Column 1).
A default penalty for failure to meet annual fees and returns under the Act is fixed at $5,500 by s 18.
Civil recovery and debt remedies
Money owing under a requirements notice issued under Part 6 is recoverable as a debt in a court of competent jurisdiction (s 53). Similarly, audit fees charged by IPART under s 56 are recoverable as a debt where IPART engages auditors under s 54(3)(a) and charges under s 56(1)-(3).
Administrative powers: audits, inspectors and auditors
IPART may appoint auditors and require audits be undertaken by IPART-appointed auditors (s 54). IPART can engage auditors and direct applicants or licensees to engage specified auditors (s 54(3)). IPART can specify audit scope and functions in the notice (s 54(4)). Auditors report to IPART and perform functions conferred under the Act (s 55).
IPART may charge audit fees (s 56). IPART may defer consideration of an application until the audit fee is paid (s 56(2)).
Auditors may accompany inspectors who enter premises under the Act, Part 7A, for the purpose of exercising auditor functions (s 58). This links audit work to statutory inspection powers under the Act.
Operational enforcement by operators and retailers
Operators and retailers are empowered to restrict or disconnect services in specified circumstances, subject to procedural protections for customers. Clauses 39-40 of the deemed customer contract set out when services can be restricted or disconnected for non-payment, breach of obligations, intentional damage, false or misleading information, or failure to comply with approvals (Schedule 4, cl 39-40). Those restrictions are limited by protections for critical health needs and minimum flow standards and must be performed within specified times and after reasonable notice (Schedule 4, cl 39-41).
If property is disconnected, operators or retailers may recover their equipment installed on the property (Schedule 4, cl 39(6), cl 40(6)).
Enforcement through IPART and Ministerial action
IPART has a range of regulatory functions under s 59, including functions under the Act’s Part 55 and Part 57 (s 59). The Minister can impose water restrictions by Gazette notice where necessary because of drought, emergency or public interest considerations (s 61). The Minister may extend local water restrictions orders across supply areas, subject to source constraints (s 62).
IPART can approve, modify or direct contingency plans and can require testing (ss 38-39, 43). IPART’s capacity to appoint technical experts and auditors for contingency plans is an enforcement lever giving the regulator hands-on control of preparedness (ss 35-36, 43).
Penalties tied to specific procedural requirements
Time-sensitive notification obligations carry potential enforcement implications. For example, licensees must notify IPART within specific short windows when proposing to cease operations or after ceasing operations (s 15); failure may have consequences under the Act and the licence conditions in Schedule 2.
The regulation makes some breaches subject to the Energy and Water Ombudsman NSW review processes (Schedule 4, cl 34; cl 65) rather than criminalisation, creating a tiered resolution path for customer complaints.
Implementation and enforcement frictions to note
Enforcement relies in part on IPART exercising its investigatory and audit powers and on the Minister’s use of Gazette notices. The regulation gives IPART discretion to appoint auditors, set audit scope and defer application decisions until fees are paid (s 54-56), which concentrates administrative enforcement power in IPART but requires capacity and funding for effective execution.
Recovery of planning and technical expert costs shifts financial exposure to essential service providers and developers in certain contexts (ss 44-45). That is enforceable via debt recovery and IPART determinations, but practical enforcement will turn on the regulator’s ability to produce timely determinations under the fixed period rules (s 60) and the registered operator’s willingness to pursue court remedies for unpaid amounts (s 53).
Operators and retailers face reputational and consumer-redress risk through the Ombudsman and public reporting requirements. Schedule 2 requires disclosure of incidents to IPART, other agencies and the public (Schedule 2, cl 3-4), and the deemed customer contract requires certain rebates and customer notification obligations (Schedule 4, cl 21, cl 53).
In short, the regulation provides a mixed toolkit of monetary penalties, civil recovery, administrative audits and licence-based controls. The practical effectiveness of enforcement will depend on IPART’s resourcing and enforcement priorities, the Minister’s willingness to use Gazette powers and the commercial incentives of operators and retailers to comply to avoid disputes, Ombudsman intervention and reputational damage.
How it interacts with other laws
The regulation is explicitly designed to operate within a statutory ecosystem and repeatedly cross-references other Acts and instruments. The key interactions are specified in the text and determine the limits and interfaces of regulatory power.
The Water Industry Competition Act 2006 (the Act)
The regulation operationalises and supplements many provisions of the Act. It prescribes definitions for terms used in the Act (s 3), specifies classes of infrastructure for purposes of Act, s 3A(f) (s 6), and identifies water industry infrastructure to which Part 2 of the Act applies or does not apply (ss 7-8; Schedule 1). Multiple provisions cross-reference the Act’s provisions for offence and licensing frameworks (e.g., ss 10-18). Many enforcement and licensing functions in the regulation assume the Act provides the primary statutory powers and sanctions.
IPART Act 1992
For investigations into monopoly pricing methodology, the regulation applies Part 3 of the IPART Act, subject to modifications such as treating references to “government agency” as “monopoly supplier” and excluding some IPART Act sections (s 24). The regulation therefore integrates IPART’s existing procedural architecture into the water pricing context and modifies it to fit the water sector’s needs (Part 4, Divs 1-2).
Environmental Planning and Assessment Act 1979 (EP&A Act)
The regulation recognises and preserves the EP&A Act’s role in environmental approvals. Section 10 permits councils to construct certain recycled water infrastructure without a scheme approval if development consent has been granted under the EP&A Act or environmental assessment completed under Division 5.1; however a scheme approval is required before connection to a water source (s 10). Part 6 dealing with development connections refers to development authorisations as defined under EP&A Act (s 46).
Public Health Act 2010 and NSW Health standards
Water quality duties tie directly to public health regulation. Licensees must immediately notify the Minister administering the Public Health Act 2010 and other specified persons of incidents threatening water quality or public health (Schedule 2, cl 3). Water quality management systems must be consistent with the Australian Drinking Water Guidelines and additional NSW Health standards where specified (Schedule 2, cl 8; Schedule 4, cl 10-11).
Plumbing Code of Australia and national guidelines
The regulation requires meters and infrastructure to comply with the Plumbing Code of Australia (s 13(2); Schedule 2, cl 10). Water quality and recycled water management systems must be consistent with prescribed national guidelines (s 5; Schedule 2, cl 8; Schedule 4, cl 10-11).
Local Government Act 1993 and other sector acts
Schedule 1 excludes infrastructure constructed or operated under approvals granted under the Local Government Act 1993 where the approval remains in force and the infrastructure is not substantially modified after 1 March 2024 (Schedule 1, cl 4). Further exclusions refer to Water Act 1912, Water Management Act 2000 and other Commonwealth and state Acts that govern irrigation, entitlement-based taking and interstate supplies (Schedule 1, cl 2-3, cl 6-7).
Energy and Water Ombudsman NSW and dispute resolution frameworks
The deemed customer contract makes the Energy and Water Ombudsman NSW the external dispute resolution body to which customers can escalate disputes after internal reviews (Schedule 4, cl 34, cl 65). This links regulatory compliance with the Ombudsman’s dispute-resolution regime.
Other interfaces and administrative instruments
The regulation requires IPART to publish fees, issues papers and summaries on its website and references the Standard Instrument for planning terms and the Premier-declared Christmas closedown period in time-limit calculations (s 3; s 27; s 60). It also cross-references Australian standards such as AS ISO 55001 and AS 10002:2022 (Schedule 2, cl 7 and cl 14).
Practical consequences of these interactions
Compliance collides with multi-layered requirements. Operators and retailers must satisfy not only licence conditions in the Act and this regulation but also public health requirements from NSW Health and national guidelines, plumbing code obligations and planning conditions from the EP&A Act. For example, the requirement to install meters compliant with the Plumbing Code of Australia intersects with meter-reading and billing rules in the deemed customer contract (s 13(2); Schedule 2, cl 1; Schedule 4, cl 45-49).
Transitional interactions are explicitly managed. Schedule 5 sets transitional arrangements for existing licences and pending applications during a transition period to 1 March 2025, allowing IPART to vary conditions and manage interim schemes in a way that interacts with earlier licence regimes (Schedule 5, Part 1).
Where other Acts create overlapping powers (for example, the Act’s Part 6 entry and compensation powers and local government approvals), the regulation preserves the primacy of those Acts by cross-reference and by providing procedural detail rather than supplanting substantive powers.
Overall, the regulation is tightly coupled with a web of other laws and technical instruments. Practitioners must map obligations across the Act, the EP&A Act, public health law, plumbing codes and IPART procedures to ensure holistic compliance.
Amendment history
The regulation includes limited internal amendment notes and explicit repeal and savings provisions that detail its relationship to the previous regulation and transitional arrangements.
Commencement and repeal. The regulation commenced on 1 March 2024 and expressly repealed and replaced the Water Industry Competition (General) Regulation 2021 (s 2; s 65(1)). The repeal is saved for acts, matters or things that had effect under the 2021 regulation and continue to have effect under the 2024 regulation (s 65(2)).
Textual amendment note. Section 3 contains an amendment note: "s 3: Am 2025 No 48, Sch 3.16." This indicates at least one formal amendment to the definitions section is recorded in an amending instrument (the note is within the source text provided).
Transitional provisions. Schedule 5 sets out savings, transitional and other consequential provisions in respect of the Water Industry Competition Amendment Act 2021 and the enactment consequences for existing licences and pending applications. The Schedule defines a transition period from 1 March 2024 to 1 March 2025, allows IPART to vary conditions of existing licences during that period (Schedule 5, cl 2), and prescribes how pending licence applications are to be treated alongside determinations made under new provisions (Schedule 5, cl 3-4). It also contains tailored transitional arrangements for interim schemes and interim last resort providers during the transition period (Schedule 5, cl 5).
Interim scheme list. Schedule 5, Part 1, cl 5(7) lists a set of interim schemes and identifies the interim last resort providers for those schemes (for example, Sydney Water for Barangaroo South). It prescribes specific information transfer deadlines from interim scheme operators and retailers to the interim last resort provider during the transition period (Schedule 5, cl 5(4)-(5)). It also explains how an interim scheme ceases to be interim under specified IPART determinations or Ministerial action (Schedule 5, cl 5(6)).
Repeal savings. Section 65(2) preserves any acts, matters or things that had effect under the previous regulation so that ongoing contractual or administrative effects are not unintentionally lost on repeal.
What the source does not show
The source text does not include a recorded legislative history table beyond the single amendment note in s 3. No prior amendments, case law, or judicial decisions are mentioned in the regulation text beyond the explicit repeal of the 2021 regulation and the transitional mechanics.
The regulation itself contains several "Note" entries that reference other Acts, instruments and guidelines (for example, the Plumbing Code and national guidelines) but it does not append an exposition of policy rationale. Any policy justifications must therefore be treated as external to the instrument unless explicitly stated in a second-reading speech or explanatory memorandum not provided here.
From a practical perspective, the presence of a transition period and specific savings and conversion mechanics shows legislative intent to avoid sudden operational shocks for existing licence-holders while moving to the new regulatory architecture. The explicit amending note in s 3 signals that the text has been subject to at least one subsequent amendment after commencement, and practitioners should check the consolidated and up-to-date form of the regulation for any further changes.
Litigation history
The regulation text supplied contains no judicial authorities, reported disputes, appeals or case citations. It does not reference any existing litigation under the Act or this regulation, nor does it identify any contested administrative decisions.
What the regulation does provide that is relevant to disputes and potential litigation
Internal review and external dispute resolution pathways. The regulation gives customers a right to apply for review of licensee decisions and specifies that a failure by a licensee to determine an application for review within 20 business days is to be taken as a refusal (s 23). Customers may then apply to the Energy and Water Ombudsman NSW, and may have rights under the Australian Consumer Law for contractual or service failures (Schedule 4, cl 22, cl 34, cl 65). These statutory review avenues are likely to be the first step before any court proceedings.
IPART’s determinations and procedural protections. For monopoly pricing investigations, IPART must publish issues papers, hold public hearings, publish draft and final reports and set out reasons for significant methodological changes (Part 4, ss 27-32). Those procedural steps create an administrative record which could be subject to judicial review on traditional administrative law grounds if a party alleges procedural unfairness, failure to consider relevant matters or legal error.
Recoverable debts and enforcement. Money owing under requirements notices is recoverable as a debt in court (s 53), creating straightforward civil recovery actions for unpaid developer contributions or connection charges. IPART’s capacity to charge fees and defer applications until fees are paid (s 56) could give rise to judicial review or debt-recovery litigation if disputes over fee reasonableness arise.
Dispute triggers likely to generate litigation. The regulation contains a number of friction points that commonly generate disputes in utility regulation settings: allocation of connection and augmentation costs by registered operators under Part 6 (ss 49-50); determination of reasonable costs payable to last resort providers and technical experts (ss 44-45); licence condition variations and IPART determinations under the transition mechanics (Schedule 5); and the interplay between operator/retailer decisions to disconnect and customer critical health needs (Schedule 4, cl 39-41).
Given the absence of litigation recorded in the text, practitioners must rely on the procedural and dispute resolution architecture the regulation sets out. Where the regulation requires IPART to publish reasons, issues papers and responses to submissions (ss 30, 32), those materials will form the administrative record that a court would review if a judicial review challenge is mounted. For contractual disputes between customers and licensees the Ombudsman is the first escalation point and the Act’s formal appeal or judicial review pathways remain available for legal challenges to administrative decisions.
In short, there is no litigation history in the regulation text. The regulation establishes multiple administrative and civil mechanisms that will determine where disputes are most likely to arise and what record will be available for a court if judicial review or civil litigation becomes necessary.
Gotchas
Several practical pitfalls and less immediately-visible effects arise from the regulation’s text. These are concrete mechanics that can catch operators, retailers, developers and customers unprepared if not tracked closely.
Narrow timeframes with strict consequences
Short notification windows are imposed on licensees. Section 15 requires written notice to IPART within 24 hours of proposing to cease operating infrastructure and within 1 hour after ceasing operations (s 15(1)). Similarly, retailers and operators must transfer customer information within five days after certain events (Schedule 2, cl 11 and cl 22). Failure to meet these windows risks regulatory action or practical disruption when a substitute provider must be appointed.
IPART’s application determination fixed periods are short and exclude a range of suspensions in the counting of time, including the whole of 1 March 2024 to 1 March 2025 and periods for submissions and audits (s 60). Practitioners must account for exclusions carefully when timing applications.
Cost allocation that can be front-loaded and recoverable as debt
Developers may be required to pay specified amounts in a requirements notice before a certificate of compliance is granted; the registered operator determines the relevant costs (Part 6, ss 49-50). If unpaid, those sums are recoverable as a debt (s 53). The operator’s discretion in assessing costs under s 50 (based on NPV, historical cost or other bases) invites cost-allocation disputes that can be litigated as debt claims.
IPART may charge audit fees and defer application determinations until fees are paid (s 56). This effectively grants IPART leverage to halt processing where fees are in dispute.
Contingency planning costs shift to essential service providers, but recovery depends on IPART decisions
The essential service provider, not the last resort provider, must pay reasonable contingency planning costs incurred by a last resort provider and technical experts may be payable at IPART’s direction (ss 44-45). In practice the essential service provider must budget for potential contingency expenses, but disputes about “reasonable costs” will be referred to IPART,and IPART’s timing in making determinations matters.
Deemed customer contract is automatically applied but can be varied only by specific processes
The deemed customer contract applies automatically to small retail customers (Schedule 4, cl 2). Modifying or excluding its application requires a written request and agreement (Schedule 4, cl 3) or an IPART joint application process for operators and retailers to seek modification (s 21). Property purchasers and new owners must note that prior modifications do not bind the new owner unless expressly agreed (Schedule 4, cl 3(2)-(3)).
Disconnection rules are protective but administrative steps are prescriptive
Operators and retailers may restrict or disconnect services but must follow multiple notice and timing rules, including making reasonable attempts to contact customers, providing reminders and warning notices, and performing disconnections only within specified times and days (Schedule 4, cl 37-41). Failure to follow process can be challenged via the Ombudsman or tribunal avenues and may expose licensees to claims under the Australian Consumer Law for unfair contract terms or unconscionable conduct.
Metering obligations have operational complexity
Meters must comply with the Plumbing Code of Australia, be read at intervals no greater than four months, and be accessible (Schedule 2, Part 1 cl 1; Schedule 4, ch 45-48). If a meter is inaccessible, the operator may bill on an estimate and after repeated failures may relocate the meter at the customer’s cost (Schedule 4, cl 48). Disputes about estimated usage and meter accuracy can produce billing disputes and Ombudsman complaints.
Publication and transparency triggers reputational risk
IPART must publish issues papers, draft and final reports and certain submissions (Part 4, ss 27-31). Licensees must publish operational notices, charges and customer procedures on their websites (Schedule 2, cl 12; Schedule 4, cl 24). Public disclosure of incidents, pricing methodology changes and contingency plans exposes licensees to public scrutiny and potential political or media attention.
Interactions with other statutory regimes
The regulation follows other Acts such as the EP&A Act, Public Health Act and Water Management Act. Practitioners must reconcile development consent conditions, environmental assessment obligations and public health notices with the requirements for scheme approvals and operational approvals under this regulation (e.g., s 10 and Schedule 1). A consent authority that imposes a condition requiring a certificate of compliance can alter the developer operator interaction in ways that complicate timelines (s 47).
Transitional complexities for interim schemes
Schedule 5 sets out special transitional arrangements and lists interim schemes. Those interim schemes have bespoke rules like compressed information-transfer deadlines to interim last resort providers. Entities involved in those specific schemes must track those transitional rules closely.
Fee-setting and discretionary powers concentrated at IPART and the Minister
IPART sets fees for applications for deemed customer contract modification and audit fees, may appoint auditors and technical experts, and determines cost disputes. The Minister has discretion to designate last resort providers and to publish water restriction notices. Entities must plan for discretionary decisions that materially affect operations and costs, and cannot rely solely on prescriptive formulae in many cases.
Each of these “gotchas” is anchored in the regulation text cited above. Practitioners, operators and retailers should build compliance checklists that map these prescriptive requirements to internal operational calendars, budgets and contractual arrangements to avoid timing, recovery and reputational risks.
How to comply
Below are practical, source-grounded steps for the main regulated actors , registered operators, registered retailers, developers, consent authorities and IPART , to align with the regulation’s requirements. Each step references the specific provision(s) that require the action.
For registered operators
Create and maintain asset management and water quality systems
Develop an asset management plan or system consistent with AS ISO 55001:2014 and include policies for safe, reliable construction, redundancy, continuity of supply, and service-level monitoring (Schedule 2, cl 7(1)-(3)). Implement a review and update cycle and be prepared to amend plans on direction by the Minister or IPART (Schedule 2, cl 7(4)-(4)(c)).
Implement water quality and sewage management systems
Where producing or supplying drinking water or recycled water, implement water quality management systems aligned to the Australian Drinking Water Guidelines and Australian Guidelines for Water Recycling respectively; review and update regularly and comply with NSW Health additional standards if specified (Schedule 2, cl 8; Schedule 4, cl 10-11).
Where conveying or treating sewage, implement sewage management plans addressing assessments, responses and disposal arrangements; combine systems where efficient (Schedule 2, cl 9).
Meter compliance and metering program
Ensure meters comply with the Plumbing Code of Australia and install a meter on each household or business served where required by scheme approval conditions (s 13; Schedule 2, cl 10; Schedule 4, cl 45). Test meters periodically and maintain a reading cycle of no more than four months (Schedule 2, cl 1).
Contingency planning and cooperation with last resort providers
Prepare contingency plans within six months of operational approval or the period approved by IPART, including customer lists with critical health needs and the information required by last resort providers (Part 5, ss 37-39). Facilitate last resort provider access and exercises if the plan is prepared by a last resort provider (ss 40-41).
Customer information and transfer obligations
Take all reasonable steps to transfer customer information within five days of events such as substitution by another licensee or Ministerial orders (Schedule 2, cl 11). Ensure customer records include deposited plan numbers and flags for customers with critical health needs (Schedule 2, cl 11(2)).
Respond to incident notification and public disclosure
Immediately notify IPART, the Minister administering the Public Health Act and relevant operators/public water utilities of incidents threatening water quality or public health using IPART’s specified form and way (Schedule 2, cl 3). Be prepared for public disclosure of incidents (Schedule 2, cl 4).
For registered retailers
Publish and supply required customer information
Publish IPART’s summary of the deemed customer contract on the retailer website and provide copies annually to customers (Schedule 2, cl 12). Publish standard contract charges, rebates and billing cycles on the website and provide written copies on request (Schedule 4, cl 24).
Complaints, payment difficulty and family violence frameworks
Maintain a complaints-handling procedure consistent with AS 10002:2022 and publish how customers can complain and escalate to the Energy and Water Ombudsman NSW (Schedule 2, cl 14).
Implement a payment difficulty process addressing identification of customers in difficulty, tailored payment plans and circumstances for disconnection consistent with the customer contract (Schedule 2, cl 15).
Adopt and publish a family violence policy protecting privacy and access to payment difficulty programs (Schedule 2, cl 16).
Billing, notices and disconnection procedure compliance
Issue bills at least quarterly, ensure bills contain required itemised information, and send reminder and warning notices before disconnection in accordance with Schedule 4, cl 28, cl 37-38. Ensure bills include translation service and National Relay Service information in the six prescribed languages where required (Schedule 2, cl 17).
For developers and consent authorities
Early engagement with registered operator
Consent authorities must notify the registered operator about development applications that may significantly affect infrastructure and must consider submissions when deciding development authorisations, subject to certain exceptions (s 47). Developers should apply to registered operators for certificates of compliance early and include a copy of development authorisation or application (ss 48-48(3)).
Be prepared for requirements notices and cost determinations
Registered operators may issue requirements notices asking developers to pay specified amounts, enter agreements or provide security before issuing certificates of compliance (s 49). Operators will determine relevant costs using net present value, historical cost or other appropriate bases and may consider operating costs and revenues (s 50). Developers should allocate budget and security arrangements accordingly and consider negotiating the construction/transfer terms in agreements.
For IPART and the Minister (regulatory duty-holders)
Transparent process for pricing investigations
Prepare issues papers, invite submissions, hold public hearings and publish submissions and draft and final reports with reasons and methodological change statements, per ss 27-32. Publish fees and make processes transparent on the IPART website (ss 21, 27, 30).
Appoint and manage auditors and technical experts with clarity
When appointing auditors or technical experts under Parts 5 and 7, set the scope, functions and fees in writing and ensure audit reports are considered in application decisions (ss 35-36, 54-57).
Ensure timely determinations and manage transitional rules
Observe fixed periods for determination of applications (s 60) and manage the transition period provisions in Schedule 5 for existing licences and interim schemes to avoid procedural backlogs.
Practical checklists for compliance
Governance and documentation: maintain up-to-date asset management, water quality and sewage management systems; retain documentation of reviews and IPART or Ministerial directions (Schedule 2, cl 7-9).
Customer communication: publish required notices and retain proof of delivery for bills, notices of service commencement, rebates and changes in contract terms (Schedule 4, cl 24; cl 53-55).
Metering: ensure meters meet plumbing code requirements, organise a regular meter-reading schedule (max four months), and establish a clear process for meter testing and relocation at customer request (Schedule 2, cl 1; Schedule 4, cl 45-50).
Contingency readiness: prepare contingency plans with directories of critical system access, staff contacts and customer lists; perform tests when directed by IPART and budget for contingency and technical expert costs (Part 5, ss 37-45).
Financial controls: set aside reserves for possible last resort and contingency costs; ensure clear billing processes for additional charges (Schedule 4, cl 26; ss 44-45). Establish processes to recover unpaid requirements notices through debt recovery where appropriate (s 53).
Audit and regulatory interaction: be prepared to engage with IPART-appointed auditors, respond to issues papers and draft reports, and to provide information within specified timeframes (Part 4; Part 7).
Record-keeping and escalation
Keep structured records for customer information, transfers, incident notifications and meter histories. When disputes arise, follow internal review timelines (a licensee’s failure to determine a review within 20 business days is taken as a refusal, s 23) and ensure escalation paths to the Energy and Water Ombudsman NSW are clear and communicated (Schedule 4, cl 34, cl 65).
These steps are grounded in the regulation’s text and provide a practical roadmap for compliance that aligns with the allocation of duties and cost responsibilities the regulation establishes.
(1) For the Act, Dictionary, definition of stormwater, paragraph (a), stormwater includes rainwater that has run off an urban surface, including a roof, pavement, car park, road, garden or vegetated open space.
(2) For the Act, Dictionary, definition of stormwater, paragraph (b), stormwater does not include—
(a) rainwater collected solely from roofs, or
(b) leachate collected from landfill.
5 National safety guidelines
5 National safety guidelines
5 National safety guidelines
For the Act, Dictionary, definition of national safety guidelines, the following documents as in force from time to time are prescribed—
(a) the Australian Drinking Water Guidelines, published by the Australian Government, the National Health and Medical Research Council and the Natural Resource Management Ministerial Council,
(b) the Australian Guidelines for Water Recycling, including Phases 1 and 2, published by the Environment Protection and Heritage Council, the Natural Resource Management Ministerial Council and the Australian Health Ministers’ Conference.
Part 2 Water industry infrastructure
Part 2 Water industry infrastructure
Part 2 Water industry infrastructure
Division 1 Preliminary
Division 1 Preliminary
Division 1 Preliminary
6 Classes of water industry infrastructure
6 Classes of water industry infrastructure
6 Classes of water industry infrastructure
For the Act, section 3A(f), the following purposes are prescribed—
(a) the supply of drinking water,
(b) the collection and treatment of groundwater for the production, supply and use of water,
(c) the collection and treatment of wastewater, other than sewage, stormwater or recycled water, for the production, supply and use of water.
7 Water industry infrastructure to which the Act, Part 2 applies
7 Water industry infrastructure to which the Act, Part 2 applies
7 Water industry infrastructure to which the Act, Part 2 applies
(1) For the Act, section 5(1)(d), water industry infrastructure operated by or on behalf of a council is declared to be water industry infrastructure to which the Act, Part 2 applies if it is used or is to be used for the production or supply of recycled water for the following purposes—
(a) washing or cleaning, including vehicles, paths, common areas or fences,
(b) toilets, laundries or washing machines,
(c) irrigation for the purposes of growing food,
(d) above ground irrigation of a golf course or public open space, including a park, sportsground or median strip, if the recycled water is wholly or partly obtained from the treatment of sewage.
(2) Water industry infrastructure specified in subsection (1) includes a reticulation network connected to the infrastructure and used to convey anything to or from the infrastructure.
8 Water industry infrastructure excluded from the Act, Part 2
8 Water industry infrastructure excluded from the Act, Part 2
8 Water industry infrastructure excluded from the Act, Part 2
(1) For the Act, section 5(2)(b), the following water industry infrastructure is excluded from the application of the Act, Part 2—
(a) water industry infrastructure specified in the Act, section 5(1)(c), if the infrastructure is not also covered by the Act, section 5(1)(a) or (b),
(b) water industry infrastructure specified in this regulation, section 7,
(c) water industry infrastructure specified in this regulation, Schedule 1.
(2) Subsection (1)(a) and (b) apply to water industry infrastructure only if—
(a) the water industry infrastructure is—
(i) immediately before 1 March 2024, constructed but not yet operated by or on behalf of a council, or
(ii) immediately before 1 March 2024, operated by or on behalf of a council, or
(iii) on or after 1 March 2024, constructed and operated by or on behalf of a council, in accordance with an existing consent, and
(b) the construction or operation of the water industry infrastructure is not substantially modified or expanded on or after 1 March 2024.
(3) In this section—
existing consent means one of the following in force immediately before 1 March 2024—
(a) a development consent or approval under the Environmental Planning and Assessment Act 1979,
(b) for development not requiring development consent or approval under the Environmental Planning and Assessment Act 1979—a resolution of the council.
Note—
The Act, section 5(2)(a) provides that the Act, Part 2 does not apply to water industry infrastructure within the area of operations of a public water utility and operated by or on behalf of the public water utility, other than as a last resort provider.
9 Policies about use of water resources
9 Policies about use of water resources
9 Policies about use of water resources
For the Act, section 5A(a), the following policies published by the Department in which the Act is administered, as in force from time to time, are prescribed—
(a) the NSW Water Strategy,
(b) the Greater Sydney Water Strategy,
(c) the Lower Hunter Water Security Plan.
Division 2 Scheme approvals and operational approvals
Division 2 Scheme approvals and operational approvals
Division 2 Scheme approvals and operational approvals
10 Exceptions from requirement for scheme approval—the Act, s 6(2)
10 Exceptions from requirement for scheme approval—the Act, s 6(2)
10 Exceptions from requirement for scheme approval—the Act, s 6(2)
(1) A council may construct the following water industry infrastructure without a scheme approval if development consent has been granted under the Environmental Planning and Assessment Act 1979 or if environmental assessment has been carried out in relation to the development under that Act, Division 5.1—
(a) a water storage facility for recycled water,
(b) a water reticulation system for recycled water.
(2) Despite subsection (1), a scheme approval is required before the water industry infrastructure is connected to a water source.
Note—
See also the Act, section 6A, which provides that a person must not operate water industry infrastructure unless the infrastructure is substantially constructed as authorised by a scheme approval.
(3) In this section—
water reticulation system has the same meaning as in the Standard Instrument.
water storage facility has the same meaning as in the Standard Instrument.
11 Grant of scheme approval
11 Grant of scheme approval
11 Grant of scheme approval
For the Act, section 7C(1)(g), IPART must be satisfied that the relevant operator licence authorises the activities proposed under the scheme approval, having regard to all the water industry infrastructure to be operated under the operator licence.
12 Grant of operational approval
12 Grant of operational approval
12 Grant of operational approval
For the Act, section 7D(1)(h), IPART must be satisfied that the relevant retailer licence authorises the activities proposed under the operational approval, having regard to all the water and sewerage services to be sold under the retailer licence.
13 Condition of scheme approvals—the Act, s 7H(1)(e)
13 Condition of scheme approvals—the Act, s 7H(1)(e)
13 Condition of scheme approvals—the Act, s 7H(1)(e)
(1) It is a condition of a scheme approval for water industry infrastructure that a water meter must be installed for each household or business that is or will be serviced by the water industry infrastructure.
(2) The water meter must comply with the requirements of the Plumbing Code of Australia, published by the Australian Building Codes Board, as in force from time to time.
Division 3 Licences
Division 3 Licences
Division 3 Licences
14 Conditions of licences—the Act, s 8G(1)(b)
14 Conditions of licences—the Act, s 8G(1)(b)
14 Conditions of licences—the Act, s 8G(1)(b)
(1) A licence is subject to the conditions set out in Schedule 2, Part 1.
(2) An operator licence is also subject to the conditions set out in Schedule 2, Part 2.
(3) A retailer licence is also subject to the conditions set out in Schedule 2, Part 3.
15 Licensee must notify IPART
15 Licensee must notify IPART
15 Licensee must notify IPART
(1) For the Act, section 8H(1)(f), the licensee must give written notice to IPART within—
(a) 24 hours after proposing to cease to operate the water industry infrastructure for which the licensee is the registered operator, and
(b) 1 hour after ceasing to operate the infrastructure.
(2) For the Act, section 8I(1)(a), the licensee must give written notice to IPART within—
(a) 24 hours after proposing to cease to provide retail services under the licence for a particular regulated scheme, and
(b) 1 hour after ceasing to provide the retail services.
(3) Subsections (1)(a) and (2)(a) do not apply if the licensee ceases to operate water industry infrastructure or to provide retail services in an emergency.
16 Agreement between registered operator and registered retailer
16 Agreement between registered operator and registered retailer
16 Agreement between registered operator and registered retailer
For the Act, section 8H(1)(h)(ii), an agreement between a registered operator and a registered retailer must specify—
(a) the responsibilities of each licensee under a customer contract, including who is responsible for the following—
(i) installing, testing, repairing, maintaining, reading or replacing meters,
(ii) undertaking inspections, including inspections of backflow prevention devices or cross-connections in dual reticulation schemes, and
(b) the notification requirements for each licensee under a customer contract, including a requirement for a licensee to notify the other licensee when—
(i) a customer is connected to the regulated scheme, or
(ii) the water supply or sewerage service is interrupted, or
(iii) a customer makes a complaint, or
(iv) the licensee is notified that a customer or person living at the customer’s property has critical health needs, or
(v) a customer seeks or is granted an approval from the licensee.
17 Splitting of composite licences—the Act, s 8K(4)(b)
17 Splitting of composite licences—the Act, s 8K(4)(b)
17 Splitting of composite licences—the Act, s 8K(4)(b)
(1) The Minister may split a composite licence into its component licences on—
(a) the Minister’s own initiative, or
(b) the recommendation of IPART, or
(c) the application of the licensee.
(2) An application by a licensee must be made to IPART and determined by the Minister.
(3) If the Minister proposes to split a composite licence into its component licences under subsection (1)(a) or (b), the Minister must give the licensee at least 14 days to make submissions about the proposal.
18 Annual fees and returns—default penalty
18 Annual fees and returns—default penalty
18 Annual fees and returns—default penalty
For the Act, section 8N(4), the penalty for default is $5,500.
Part 3 Operation of water retail market
Part 3 Operation of water retail market
Part 3 Operation of water retail market
19 Deemed customer contracts for regulated schemes—the Act, s 46AB(1)
19 Deemed customer contracts for regulated schemes—the Act, s 46AB(1)
19 Deemed customer contracts for regulated schemes—the Act, s 46AB(1)
The terms and conditions of the deemed customer contract are set out in Schedule 4.
20 Requirement to notify registered retailer of scheme connection—the Act, s 46AB(6)(a)
20 Requirement to notify registered retailer of scheme connection—the Act, s 46AB(6)(a)
20 Requirement to notify registered retailer of scheme connection—the Act, s 46AB(6)(a)
(1) The registered operator of infrastructure that connects a scheme to premises must give written notice to the registered retailer for the infrastructure as soon as reasonably practicable after the premises are connected to the scheme.
(2) Subsection (1) does not apply if the registered operator of infrastructure and the registered retailer are the same person.
21 IPART may modify or exclude application of deemed customer contract—the Act, s 46AB(6)(c) and (d)
21 IPART may modify or exclude application of deemed customer contract—the Act, s 46AB(6)(c) and (d)
21 IPART may modify or exclude application of deemed customer contract—the Act, s 46AB(6)(c) and (d)
(1) IPART may modify or exclude the application of the deemed customer contract for a registered operator or a registered retailer on the joint application of the registered operator and registered retailer.
(2) A modification or exclusion may apply generally or in specified circumstances.
(3) An application for a modification or exclusion must be—
(a) ma
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