Gladstone Area Water Board 2000
The Gladstone Area Water Board (GAWB) owns the Awoonga Dam on the Boyne River together with a network of pipelines, pump stations, reservoirs and treatment plants. It provides treated and raw water to large industrial customers and power stations and the Gladstone City and Calliope Shire Councils.
The Premier and the Treasurer declared the supply, distribution and treatment of bulk water by GAWB to be government monopoly business activities and referred their pricing practices in respect of these activities to the Queensland Competition Authority for investigation and monitoring.
To assess the pricing practices of GAWB, through consultation with stakeholders, the Authority developed a pricing framework consistent with the objectives of monopoly prices oversight, assessed GAWB's prices and pricing practices against that framework, and developed proposals for monitoring pricing practices.
In its Final Report the Authority recommended that prices should be based upon the Long Run Marginal Cost (LRMC) of supply, and that two part tariffs should be implemented.
Decision/Recommendation
Interim Reports/Papers
