Review of prices for the Water Administration Ministerial Corporation

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C Cost shares adopted by IPART Water management implementation Water management planning River management works Water consents administration Water consents transactions C06-01 Systems operation & water availability management C06-02 Trading & accounts management C06-03 Plan performance monitoring & reporting 100% 5% 100% 3% 50% 8% C06-04 Blue-green algae management 50% 1% C06-05 Environmental water 0% 6% management C07-01 Water sharing plan 70% 5% development C07-02 Operational planning 75%b 9% C07-03 Environmental water planning 0% 7% C07-04 Cross-border & national 50% 3% commitments C07-05 Water industry regulation 30% 1% C08-01 River management works 50% 3% C09-01 Consents administration 100% 4% C09-02 Licence conversion & 100% 2% entitlement specification C09-03 Compliance 100% 7% C09-04 Consent transaction Overhead 100% 3% C10-01 Water consents transactions 100% 0% Business C11-01 Financial administration 100% 3% administration C11-02 Business development 70% 1% Capital program C12-01 Surface water assets renewal 70% 0% C12-02 Groundwater assets renewal 100% 0% C12-03 Water laboratory assets renewal 50% 0% C12-04 Metering water use systems on unregulated rivers & groundwater 90% 0% C12-05 Integrated corporate water & 50% 0% ecological databases a Lachlan Valley Water noted that NOW proposed to increase the user share for C01-02 Surface water quantity data management and reporting from 50% to 70%. NOW has confirmed that this number was incorrectly listed in its December 2009 submission as 70%. b NOW has confirmed that this number was incorrectly listed in its December 2009 submission as 100%. c As noted in the report, costs for the metering operations will be recovered through the meter charges (and not via prices). Source: NOW submission, December 2009 268 IPART Review of prices for the Water Administration Ministerial Corporation
D Illustrative example of cost allocation D Illustrative example of cost allocation The cost allocation process is best explained by example. Table D.1 shows the process for allocating ‘surface water monitoring’ costs to valleys and water types. Note the following: The cost driver is the number of gauging stations that are funded by NOW in a given valley. NOW considers this to be the key determinant of costs for ‘surface water monitoring’. Cost allocation shares for each valley and water type are calculated to be the number of gauging stations in a valley/water type, divided by the total number of gauging stations. The user share of Scenario 1 costs for surface water monitoring is 70%. IPART’s total efficient costs for this cost code (in this instance $4.199 million) are multiplied by the user share to obtain $2.940 million. This user share of expenditure is multiplied by the cost allocation shares to determine the costs attributable to each valley and water type. This allocation of costs results in the following outcomes: Unregulated river users in the North Coast receive 20.8% of surface water monitoring costs under this allocation (as a large number of gauging stations are located on unregulated rivers in this valley). Around three quarters of surface water monitoring costs are allocated to unregulated rivers, and one quarter of costs is allocated to regulated rivers (as most of the gauging stations on regulated rivers are owned by State Water and not NOW). Review of prices for the Water Administration Ministerial Corporation IPART 269
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Independent Pricing and Regulatory
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© Independent Pricing and Regulato
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Contents 5 Share of NOW’s total e
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1 Executive summary 1 Executive sum
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1 Executive summary IPART has decid
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1 Executive summary Table 1.2 Unreg
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1 Executive summary In setting the
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1 Executive summary 1.3.1 Increases
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1 Executive summary 1.3.2 Increases
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1 Executive summary Increases in
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1 Executive summary 1.3.5 What are
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1 Executive summary Figure 1.1 Deci
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1 Executive summary undertaken co
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2 Overview of the approach we used
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3 Specific activities included in e
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4 The total efficient costs of prov
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5 Share of NOW’s total efficient
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6 Price Structure 6 Price Structure
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6 Price Structure 6.2 Geographic sp
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6 Price Structure Table 6.1 below s
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6 Price Structure The sections belo
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6 Price Structure 6.3.3 IPART’s a
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6 Price Structure We note that this
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6 Price Structure 6.4 The price pat
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6 Price Structure is expected to be
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6 Price Structure $60 doesn’t c
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6 Price Structure 6.6.1 Stakeholder
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6 Price Structure In summary CIE co
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6 Price Structure At the Sydney pub
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7 Allocation of the user share acro
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8 Entitlement volumes and usage for
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9 Water management prices Chapter 1
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9 Water management prices Table 9.1
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10 Meter service and reading charge
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Table 10.3 NOW’s estimated annual
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11 Consent transaction charges 11 C
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11 Consent transaction charges Tabl
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11 Consent transaction charges 11.2
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11 Consent transaction charges 11.3
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Table 11.7 NOW’s estimated hours
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Table 11.9 NOW’s forecast transac
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11 Consent transaction charges 2. A
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11 Consent transaction charges maxi
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11 Consent transaction charges Rega
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11 Consent transaction charges NOW
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12 Impacts of pricing decisions As
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12 Impacts of pricing decisions Fig
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12 Impacts of pricing decisions Sam
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12 Impacts of pricing decisions Tab
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12 Impacts of pricing decisions 12.
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12 Impacts of pricing decisions Des
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Page 245 and 246: A List of appendices A List of appe
Page 247 and 248: B Summary of NOW’s submission to
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Page 279 and 280: E Cost recovery by valley E Cost re
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Page 285 and 286: G Consideration of IPART Act sectio
Page 287 and 288: H Summary of IPART’s response to
Page 289 and 290: Issue IPART response Review of pric
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Page 295 and 296: I Impact of decisions on consolidat
Page 297 and 298: J NOW report to PwC on achievements
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Page 301 and 302: 1. Outstanding NWI Activities PROGR
Page 303 and 304: 2. Increased service provision PROG
Page 305 and 306: K Prices in $2010/11 by valley and
Page 311 and 312: Cost code User share % of user shar
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M Weighted Average Cost of Capital
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N Consent transaction charges Town
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N Consent transaction charges N.2 K
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Table N.2 NOW’s revised estimated
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N Consent transaction charges N.4 A
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O Impact of changes to the cost all
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P Glossary Extractions The taking o
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