The Water Industry Competition Act 2006 (WIC Act) provides for private sector participation and competition in the NSW water and wastewater industry.
To facilitate this, infrastructure services can be ‘declared’ under the WIC Act, meaning that a third party must be granted access to these services subject to certain criteria and the establishment of an access agreement or determination.
Under the WIC Act, the provider of a declared service must develop a cost allocation manual, which sets out the basis on which the service provider will establish and maintain separate cost accounts for each of its declared services.
We have published a Cost allocation guide (the Guide) to assist service providers in preparing cost allocation manuals. We consulted with stakeholders and received submissions on a draft version of the Guide. These submissions are available on our website www.ipart.nsw.gov.au, along with our Guide and an information paper which outlines our responses to stakeholder comments.
We may update the Guide from time to time, in which case we will again consult with stakeholders.