Improving pricing transparency and customer engagement Schedule of Charges requirements set at high level, leading to a lack of clarity in many cases Schedule of Charges requirements specific to provide clarity & apply to both infrastructure operators and other entities who determine planning & management charges 5-E, 5-F, 5-I, 5-K, 7-B Schedule of charges timing and publication requirements improved 5-H, 5-J, 5K, 6D No transparency on how charges are passed through Pass-through charge rule ensures transparency and non-discrimination 5-Y, 5-Z Operators not required to explain termination fee calculations All operators required to explain how termination fees are calculated 6-F Prescriptive network planning and consultation requirements for some operators only All operators now required to provide a statement on how customers can be involved and make inquiries in charging decisions Network planning and consultation requirements (Part 5) repealed 5-F 5-L Ensuring charge approvals and determinations where necessary Rules require the approval or determination of infrastructure charges previously regulated by States Rules recognise limited incentives to seek monopoly rents, ongoing regulation of infrastructure operators’ other charges by states, and focus on pricing outcomes across customers: Costs of large non-member owned operators continue to be scrutinised by State regulators Amended application of price approvals under the WCR (Part 6) 5-M Improvements to mechanics of how price determinations operate under Part 6 the WCR 5-N to No effective deterrent for operators to make many distortionary types of distributions ‘Safe harbour’ forms of distributions made clear; other distributions that discriminate between customers unfairly trigger regulatory scrutiny of charges Application of rules governing operator distributions (Part 7) include ability for ACCC to exempt application of Part 7 5-S to 5-V Preventing discriminatory charging Limited protection against discriminatory infrastructure charges for transformed customers in member-owned operators Enhanced non-discrimination rules prohibiting discrimination based on: holdings or use of tradeable water rights (includes existing provision) participation in water markets purpose for which water is used association between water access 5-B to 5-D
Operators are free to impose higher charges on customers for the same infrastructure service rights and location-related rights area of land held or irrigated Interaction with broader regulatory framework Pricing approvals overlay similar provisions in State law Pricing approvals/determination under WCR reserved for where States can’t or don’t regulate key monopoly infrastructure operators 5-M Accreditation of State regulators has not led to consistency in charging outcomes across Basin States Winding back of accreditation arrangements that will no longer be necessary 5-W WPM cost activity reporting duplicates existing NWI commitments Limit water charge rules to disclosure of planning & management charges, not activity costs 7-A Interaction between water charge rules and CCA Part IIIA unclear Exemption from non-discrimination rules for charges pursuant to Part IIIA of the CCA (e.g. an accredited state access regime) 5-X Facilitating efficient water markets Operators free to levy infrastructure charges upon trade by customers Restrictions on levying infrastructure charges in relation to trade 5-D Incentive to limit water delivery right trade as an alternative to termination Incentives for operators to allow water delivery right (WDR) trade – maximum termination fees lower if operator does not allow WDR trade 6-E Termination fees calculation doesn't account for avoidable fixed costs or customer contributions Modified approach to termination fees calculation to takes into account avoidable fixed costs. Only some non-volumetric charges included in termination fee calculation 6-B, 6-C Out-of-scope issues Submissions to the ACCC’s Issues Paper and public forums raised a range of issues that were not within the terms of reference for the water charge rules review. The ACCC has made a number of recommendations in relation to some of these out of scope issues in Chapter 8. Broadly, these recommendations relate to improving stakeholders’ understanding of unbundled water rights, greater market transparency especially for trade prices, and improving irrigators’ access to dispute resolution mechanisms. Consultation process and timeline