The Independent Pricing and Regulatory Tribunal today announced new price structure for water, sewerage and stormwater services for the Central Coast. For average customers overall bills will rise but at a lower rate than increases in inflation.
For this determination, the Tribunal has conducted an extensive public consultative process, reviewed all written submissions and held public hearings.
Discusses the Weighted Average Cost of Capital (WACC)—a key factor in determining regulated utilities’ return on assets for the purposes of setting prices. Outlines current position in NSW and other jurisdictions.
The Tribunal has decided that Sydney Water’s overall revenue should increase in line with movements in the consumer price index (CPI) in each year of the determination period.
The Tribunal has now received submissions from the NSW Taxi Council and the Bus and Coach Association.Submissions from other stakeholders are now invited on the fare proposal put forward by the Taxi Council and the Bus and Coach Association.
IPART uses a real rate of return in setting prices to cover a utility's costs. This requires the conversion of a nominal cost of capital to a real cost of capital by adjusting for expected inflation.
Fact Sheet based on Determination and Final Report for the Review of prices for water and sewerage service provided by Council Energy in the Broken Hill area.
In making price determinations, the Independent Pricing and Regulatory Tribunal of NSW (IPART) has usually examined the indicative credit rating of the utility using various cash flow measures.
