Regulators play a key role in setting economic, environmental and social obligations upon water businesses. The following section describes the key regulatory areas in the water industry in Victoria.
Health
The Department of Human Services (DHS) has responsibility for the regulation of drinking water in Victoria, in particular the implementation and oversight of the Safe Drinking Water Act 2003.
Environmental
EPA Victoria monitors and oversees the environmental performance of the State’s water sector, which includes licensing for the discharge of treated wastewater into waterways and the management of biosolids generated at treatment plants.
Economic
On 1 January 2004, the ESC became responsible for the economic regulation of the water sector including price regulation. The regulatory framework that guides the ESC’s role and approach to price regulation is set out in the Essential Services Commission Act and the Water Legislation (Essential Services Commission and other Amendments) Act 2003.
The detail is set out in the Water Industry Regulatory Order (WIRO) 2003 that provides, among other things, that the ESC must issue a price determination setting out the nature of price arrangements to apply for the 3 year period commencing 1 July 2005 .
The ESC released its final ‘Price Decision’ for 17 water businesses in June 2005. The first ESC price determination for FMIT, Goulburn-Murray, Southern Rural Water, Lower Murray Water and Grampians Wimmera Mallee Water will be for a two year period from 1 July 2006.
Customer Service
The Water Industry Regulatory Order 2003 provides scope for the ESC to specify standards and conditions in relation to services and supply applicable to end-use customers with whom a water business is obliged to comply with, by either approving standards and conditions included in a water business's Water Plan, specifying them in a Code, or a combination of the two.
The Customer Service Code applies to the three metropolitan retail and the thirteen regional water businesses from 1 July 2005 except for Part A (Separate Written Agreements) and Part C (Customer Charters) which took effect from 1 November 2004.
All urban water businesses have a separate charters developed by the business and approved by the Regulator. Charters are available on individual businesses websites.
Water Allocation
Over recent years, Australian Governments are developing a statutory framework of transferable water entitlements via a water trading market. Under a system of controls, water can be traded either permanently or temporarily, within a State, and to some extent, between States. The aim of the water market is to encourage water to flow to its highest value use. Water can now move from relatively low return uses or areas where irrigation is contributing to significant environmental problems, to uses where it can be used more efficiently, with greater economic returns and/or achieve better environmental outcomes.
In August 2001, the Victorian Government established a new State-wide water exchange – Watermove. Goulburn-Murray Water manages Watermove on behalf of DSE and the other RWAs. Water trades are also conducted by holders of licenses and water rights, or through private brokers.
