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Legislative Assembly for the ACT: 1996 Week 10 Hansard (3 September) . . Page.. 2973 ..

MR DE DOMENICO (Minister for Urban Services) (4.28): Mr Speaker, for the information of members, and pursuant to section 6 of the Subordinate Laws Act 1989, I present the following papers relating to energy and water pricing:

Energy and Water Act - Energy and Water (Regulation of Charges) Regulations -

Notice of appointment to office of Energy and Water Charges Commissioner - Instrument No. 195 of 1996, dated 28 August 1996, published in Gazette S232, dated 3 September 1996, together with the explanatory statement.

Regulation No. 18 of 1996, published in Gazette S220, dated 28 August 1996, together with the explanatory statement.

Requirements in relation to investigations - Instrument No. 196 of 1996 under regulations 10(1) and 12, published in Gazette S232, dated 3 September 1996, together with the explanatory statement.

I move:

That the Assembly takes note of the papers.

Mr Speaker, the Energy and Water (Regulation of Charges) Regulations I have tabled today provide for an independent review of the prices that ACTEW Corporation charges for electricity, water and sewerage. These regulations are excellent news for the people of the ACT - for ACTEW's residential customers and for its business customers as stakeholders in ACTEW. They continue the reform process started with the successful corporatisation of ACTEW.

Up until now, ACTEW's pricing determinations did not provide for a process whereby the community could have a say. The new framework opens up the process. It is instructive to look at the background to the regulations from two perspectives. The first is the Bill brought forward by the Government in 1995 to corporatise ACTEW. In debating this legislation, Mr Osborne proposed, and the Assembly agreed to, an amendment that would provide for independent pricing regulation. Accordingly, section 49A of the Energy and Water Act 1988 provides for the establishment of a body having the function of regulating charges for electricity, water and sewerage; and the giving of directions by that body to ACTEW Corporation. The second context is the national competition reform agenda, which is no less important. The competition principles agreed by governments require that, where there are monopolies, independent economic or pricing regulation be instituted. There must be no possibility that a monopoly provider is able to exploit its position. It is, therefore, essential that an independent pricing review be introduced for ACTEW's water, sewerage and electricity businesses.

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