Water Pricing Principles

Water Pricing Principles

  • Final Report
  • Issues Papers
  • Project Information

The QCA's Final Report was published in December 2000.

These pricing principles largely reflect outcomes associated with the operation of competitive markets but also seek to take account of a wide range of other public interest matters. We considered that prices should be cost reflective, forward looking, ensure revenue adequacy and promote sustainable investment.

Prices should reflect the long run marginal cost of service provision. Where such prices do not achieve revenue adequacy, the QCA concluded that two-part tariffs will be appropriate for most water businesses.

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Principles principles require the consideration of a number of technical matters.

The QCA commissioned reports from various consultancies (available below) to contribute to the development of a consolidated statement of pricing principles.

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In 1999 the Queensland Government was considering a proposal to extend the prices oversight responsibilities of the QCA to the water sector, including local government water business activities.

In order to facilitate effective implementation of these new duties, the QCA was directed by the Government to prepare a report on water pricing principles, and in particular, on pricing issues for local government.

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