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Review of prices for the Water Administration Ministerial Corporation

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10 Meter service and reading charges <strong>for</strong> users on<br />

unregulated river and groundwater users<br />

10.4.2 Separate metering charges<br />

In addition to <strong>the</strong> meter service charges considered above, Table 10.1 shows that we<br />

have decided to introduce <strong>the</strong> following meter related charges:<br />

<br />

<br />

<br />

<br />

<br />

<br />

manual meter reading fee <strong>for</strong> user owned meters and meter equivalents – $192 per<br />

meter, per annum<br />

refundable deposit <strong>for</strong> resolving disputes related to <strong>the</strong> accuracy <strong>of</strong> meter reads<br />

<strong>for</strong> government-installed meters- $1,500 per meter, per dispute<br />

validation <strong>of</strong> a relocated meter <strong>for</strong> government-installed meters:<br />

mechanical meters or ‘o<strong>the</strong>r’ meter – $105 per meter<br />

electromagnetic meters – $195 per meter<br />

channel meter with mobile phone or satellite telemetry coverage – $195 per meter.<br />

Manual meter reading fees <strong>for</strong> user installed meters and approved meter equivalents<br />

NOW did not propose a separate charge <strong>for</strong> reading existing, user-installed meters or<br />

approved meter equivalents. Ra<strong>the</strong>r, it included its <strong>for</strong>ecast costs <strong>of</strong> reading <strong>the</strong>se<br />

meters in its general cost base, to be recovered from all entitlement holders through<br />

water management charges.<br />

However, we have extracted <strong>the</strong>se <strong>for</strong>ecast costs from NOW’s cost base (as discussed<br />

in Chapter 4), and instead set a separate charge <strong>for</strong> reading user-owned meters and<br />

approved meter equivalents on unregulated rivers and groundwater sources. 158 This<br />

is because we consider that entitlement holders with meters should pay <strong>for</strong> <strong>the</strong>se<br />

costs, ra<strong>the</strong>r than all entitlement holders (irrespective <strong>of</strong> whe<strong>the</strong>r <strong>the</strong>y have meters).<br />

This is also consistent with <strong>the</strong> approach taken to meter reading costs <strong>for</strong><br />

government-installed meters, which will be recovered through <strong>the</strong> meter service<br />

charges listed in Section 10.4.1 above. This separate meter reading charge <strong>for</strong> userowned<br />

meters is not dependent on <strong>the</strong> meter service charge <strong>for</strong> Government installed<br />

meters coming into effect. As such, NOW does not face additional revenue risk<br />

arising from this decision.<br />

Our Draft Report set a meter reading charge <strong>of</strong> $131 per annum based on estimated<br />

costs provided in <strong>the</strong> Nayar Consulting Report, and includes:<br />

<br />

1 manual meter read per year at a cost <strong>of</strong> $75, and<br />

a meter in<strong>for</strong>mation system cost <strong>of</strong> $56.<br />

158 The 2010 State <strong>Water</strong> Determination covers <strong>the</strong> costs <strong>of</strong> meters on <strong>the</strong> regulated water source.<br />

The NOW component <strong>of</strong> <strong>the</strong> meter reading costs <strong>for</strong> regulated rivers are included in <strong>the</strong> State<br />

<strong>Water</strong> charges. There<strong>for</strong>e, to avoid double counting, <strong>the</strong> meter reading charge <strong>for</strong> user owned<br />

meters applies to only <strong>the</strong> unregulated and groundwater sources (which are <strong>the</strong> sole<br />

responsibility <strong>of</strong> NOW).<br />

<strong>Review</strong> <strong>of</strong> <strong>prices</strong> <strong>for</strong> <strong>the</strong> <strong>Water</strong> <strong>Administration</strong> <strong>Ministerial</strong> <strong>Corporation</strong> IPART 161

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