A key element of the urban water and sewerage regulatory regime is the implementation of a comprehensive and fully integrated operator licensing framework for industry participants. The licensing framework provides a transparent means by which the various regulatory obligations placed on service providers are brought together in a single regulatory instrument.
The regulatory obligations imposed by the licensing framework include complying with minimum levels of customer service and adhering to independently regulated prices, in order to ensure that urban water and sewerage customers are not subjected to monopolistic practices.
The regulatory framework has been designed to apply to large businesses with large customer bases and it is likely that complying with the framework would be prohibitively costly for small businesses with small numbers of customers.
To ensure that the economic regulatory framework that operates in the water and sewerage sector applies only to those businesses and activities where there is a clear benefit in its application, the coverage of the regulatory framework has been refined.
A paper which explains the adjustments to the regulatory framework has been prepared and is available below.
Water and Sewerage Licensing Framework Policy Paper August 2011 (200 KB)
The adjustments are effected by Ministerial orders made under the Water and Sewerage Industry Act.