FED:Independent regulators should price water

AAP General News (Australia)
04-20-2011
FED:Independent regulators should price water

CANBERRA, April 20 AAP - Independent regulators should set the costs of water in an
overhaul of pricing in the sector, a new report says.

National Water Commission chairwoman Chloe Munro said pricing water should cover the
true cost of the resource, pipes and treatment plants and delivery.

The commission released its review of pricing reform in the Australian water sector on Wednesday.

The report showed reform has been "patchy" across states and territories and made nine
recommendations on future reforms.

The main recommendation was setting up an independent regulator to oversee pricing of water.

"While water bills should reflect the real costs of water supply, the commission is
well aware that significant investments in new infrastructure have meant that most Australians
now face continuing price rises," Ms Munro said in a statement.

She said governments and regulators had to induce water service providers to invest
and deliver services at the lowest cost.

"Flexible pricing options would give customers more choice and better signal the value
of our water," she said.

"It is equally important that pricing is overseen by fully independent economic regulators."

Ms Munro said the commission commended the reform efforts by Tasmania and South Australia,
including the establishment of independent regulators.

But she was disappointed by the Queensland government's withdrawal from reforms and
imposition of a short-term price cap.

"A better way forward for the Queensland government would be to have an independent
economic regulator to oversee water prices."

AAP el/sb/dep

KEYWORD: WATER

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