We have released a Handbook for the 3Cs framework
IPART regulates the price and performance of several NSW water businesses. We reviewed how we do this and developed a framework that focuses on customers, costs and credibility - the 3Cs framework.
We worked with stakeholders to develop a Handbook that will guide water businesses in preparing pricing proposals and managing ongoing performance under the 3Cs framework. The Handbook explains the key elements of our approach and sets out our expectations of water businesses.
We have also released a Response Paper. It addresses the feedback we received from stakeholders on the Handbook through their submissions and correspondence.
We reviewed how we set prices for the monopoly businesses we regulate Sydney Water, Hunter Water, Central Coast Council, Essential Water, WaterNSW, the Sydney Desalination Plant (SDP) and the Water Administration Ministerial Corporation (WAMC).
We released a final report in November 2022. It set out the 3Cs framework, which will enable these water businesses to deliver better value for money to their customers and address key challenges like climate change and a growing population.
Key features of the 3Cs framework include:
- Broadening the focus of IPART pricing reviews so that water businesses promote customer value, cost efficiency and credibility over the short- and long-term.
- Tailoring IPART’s assessments based on how well each business promotes customer expectations, providing more flexibility for the business to deliver for customers.
- Rewarding businesses for delivering customer value, while keeping them accountable for meeting their commitments to customers.