These criteria outline when private water providers should be subject to economic regulation.
Private water suppliers can be ‘declared’ by the QCA’s responsible Minister to be ‘a monopoly water supply activity’ under part 5A of the QCA Act.
This declaration allows the QCA to determine the prices they must charge.
To assist the Minister and private water businesses to apply and understand declaration, we are required to publish the criteria under which private water businesses should be declared.
A water supply activity should be declared a monopoly water supply activity wherever its market power is such that competitive pressures do not effectively constrain its commercial behaviour.
In response to a ministerial direction, we developed criteria to assist in deciding whether to declare a private water supplier to be a monopoly water supply activity.