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TASMANIA
__________
WATER AND SEWERAGE INDUSTRY
AMENDMENT BILL 2011
__________
CONTENTS
1. Short title
2. Commencement
3. Principal Act
4. Section 3A inserted
3A. Application in relation to strata title units of certain
expressions in this Act
5. Section 66 amended (Price determinations)
6. Section 68 amended (Pricing principles)
7. Section 68AA inserted
68AA. Transition towards full application of pricing
principles
8. Part 7: Heading amended
9. Part 7, Division 1: Heading repealed
10. Part 8: Heading inserted
PART 8 - Enforcement
11. Section 95 amended (Power of entry)
12. Section 96 amended (General investigative powers of officers)
13. Section 97 amended (Authorised officer's or water and sewerage
officer's power to require information)
14. Section 98 amended (Care to be taken)
15. Section 99 amended (Compensation)
[Bill 37]-XI
16. Part 7, Division 2: Heading repealed
17. Section 100 amended (Service of infringement notices)
18. Part 9: Heading inserted
PART 9 - Miscellaneous
19. Repeal of Act
2
WATER AND SEWERAGE INDUSTRY
AMENDMENT BILL 2011
This Public Bill originated in the House of Assembly, and, having this day passed, is
now ready for presentation to the Legislative Council for its concurrence.
P. R. ALCOCK, Clerk of the House
23 June 2011
(Brought in by the Treasurer, the Honourable Larissa Tahireh
Giddings)
A BILL FOR
An Act to amend the Water and Sewerage Industry Act 2008
Be it enacted by His Excellency the Governor of Tasmania, by
and with the advice and consent of the Legislative Council and
House of Assembly, in Parliament assembled, as follows:
1. Short title
This Act may be cited as the Water and
Sewerage Industry Amendment Act 2011.
2. Commencement
This Act commences on the day on which this
Act receives the Royal Assent.
[Bill 37] 3
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3. Principal Act
In this Act, the Water and Sewerage Industry Act
2008* is referred to as the Principal Act.
4. Section 3A inserted
After section 3 of the Principal Act, the
following section is inserted in Part 1:
3A. Application in relation to strata title units of
certain expressions in this Act
(1) In this section -
"common property" has the same
meaning as it has in the Strata
Titles Act 1998;
"lot" has the same meaning as it has in
the Strata Titles Act 1998.
(2) For the purposes of the definitions in
section 3 of "customer" and "connection
point", a property consisting of a lot that,
but for the interposing of pipes situated
in whole or in part on common property,
would be connected to a regulated
entity's water infrastructure is to be taken
to be a property that is connected to the
regulated entity's water infrastructure or
sewerage infrastructure.
*No. 13 of 2008
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5. Section 66 amended (Price determinations)
Section 66(2) of the Principal Act is amended by
inserting after paragraph (e) the following
paragraph:
(ea) not take into account a change in a rate,
prescribed in a regulation for the
purposes of section 68(1A)(c)(iv), that
comes into force at any time -
(i) after a regulated entity is required
to submit to the Regulator a
proposed price and service plan
that may be approved by the
Regulator after the price
determination is made; and
(ii) before the price determination to
which the proposed price and
service plan relates is made; and
6. Section 68 amended (Pricing principles)
Section 68 of the Principal Act is amended as
follows:
(a) by omitting paragraph (d) from
subsection (1) and substituting the
following paragraph:
(d) the price is to allow for a return to
the regulated entity, on assets that
are required in the provision of
the regulated service to which
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Water and Sewerage Industry Amendment Act 2011
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that price relates, in accordance
with subsection (1A);
(b) by inserting the following subsection
after subsection (1):
(1A) For the purposes of
subsection (1)(d), the
determination of the return to a
regulated entity on assets is to
take into account the following
assumptions:
(a) that the regulated entity
has, in relation to assets,
required in the provision
of a regulated service, that
are transferred to the
regulated entity under
Part 3 of the Water and
Sewerage Corporations
Act 2008 before
1 July 2011, the ratio of
debt to equity that would
be expected of a prudent
business of a similar kind
and scale to that of the
regulated entity;
(b) that the return to the
regulated entity on those
assets of the entity -
(i) that are referred to
in paragraph (a);
and
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(ii) in relation to
which the entity is
to be taken under
paragraph (a) to
have incurred
debt -
is to take into account the
prevailing rate of interest
for commercial loans that
a business of a similar
kind and scale to that of
the regulated entity would
be required to pay to
service that debt;
(c) that the return to the
regulated entity on those
assets of the entity -
(i) that are referred to
in paragraph (a);
and
(ii) in relation to
which the entity is
to be taken under
paragraph (a) to
have equity -
is to be taken to be a pre-
tax rate, not taking into
account inflation, of -
(iii) 3%; or
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Water and Sewerage Industry Amendment Act 2011
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(iv) if another
percentage rate is
determined in
regulations for the
purposes of this
paragraph, that
percentage rate;
(d) that the return on those
assets of the regulated
entity, required in the
provision of a regulated
service, that are not
referred to in
paragraph (a) is to be not
more than a rate that
reflects the regulatory and
commercial risks involved
in providing the regulated
service.
7. Section 68AA inserted
After section 68 of the Principal Act, the
following section is inserted in Division 5:
68AA. Transition towards full application of
pricing principles
(1) In this section -
"pricing principles" means the
pricing principles specified in
section 68(1) and any pricing
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principles prescribed in
accordance with section 68(2);
"transition period" means the period
specified in the regulations to be
the transition period for the
purposes of this section.
(2) The pricing principles are not required to
be applied, during the transition period,
in -
(a) the making of a price
determination; and
(b) the formulation or approval of a
price and service plan that is
required under this Act to be in
accordance with the price
determination -
to the extent that the application of those
principles would, during the transition
period -
(c) result in a significant impact,
because of the rate of change of
prices, on customers or particular
classes of customers; or
(d) adversely affect -
(i) the sustainability of a
regulated entity in so far
as it provides regulated
services; or
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(ii) the ability of a regulated
entity to deliver regulated
services.
(3) If the Regulator decides not to apply a
pricing principle to an extent during the
transition period in accordance with
subsection (2), the Regulator must
publish the Regulator's reasons for not
applying the principle to that extent.
8. Part 7: Heading amended
Part 7 of the Principal Act is amended by
omitting "MISCELLANEOUS" from the
heading to that Part and substituting
"AUTHORISED OFFICERS".
9. Part 7, Division 1: Heading repealed
Part 7 is amended by omitting the heading
"Division 1 -- Authorised officers".
10. Part 8: Heading inserted
The Principal Act is amended by inserting the
following heading after section 94:
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PART 8 - ENFORCEMENT
11. Section 95 amended (Power of entry)
Section 95 of the Principal Act is amended as
follows:
(a) by inserting the following subsections
after subsection (1):
(1A) A water and sewerage officer
may, as may be reasonably
required for the purposes of the
enforcement of an infringement
offence within the meaning of
section 100(1B), enter and remain
in any place.
(1B) A water and sewerage officer
may only exercise a power of
entry under this section between
the hours of 7 a.m and 7 p.m. on
any day.
(1C) A water and sewerage officer
who enters a place under this
section may, in that place, only
exercise a power under this Part
for the purposes of enforcing an
infringement offence within the
meaning of section 100(1B).
(b) by inserting in subsection (2) "or water
and sewerage officer" after "authorised
officer";
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(c) by omitting from subsection (2)
"authorised" second occurring;
(d) by omitting from subsection (2)(a)
"authorised";
(e) by omitting from subsection (2)(b)
"authorised" first occurring;
(f) by omitting from subsection (2)(b)
"authorised" second occurring;
(g) by inserting in subsection (3) "or water
and sewerage officer" after "officer".
12. Section 96 amended (General investigative powers
of officers)
Section 96 of the Principal Act is amended as
follows:
(a) by inserting in subsection (1) "or water
and sewerage officer" after "officer";
(b) by inserting in subsection (2) "or water
and sewerage officer" after "authorised
officer";
(c) by omitting from subsection (2)(a)
"authorised";
(d) by omitting from subsection (2)(b)(i)
"authorised";
(e) by inserting in subsection (3) "or water
and sewerage officer" after "officer".
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13. Section 97 amended (Authorised officer's or water
and sewerage officer's power to require
information)
Section 97 of the Principal Act is amended as
follows:
(a) by inserting in subsection (1) "or water
and sewerage officer" after "officer";
(b) by inserting in subsection (2) "or water
and sewerage officer" after "officer";
(c) by omitting from subsection (2)
"authorised" second occurring.
14. Section 98 amended (Care to be taken)
Section 98 of the Principal Act is amended by
inserting "or water and sewerage officer" after
"officer".
15. Section 99 amended (Compensation)
Section 99 of the Principal Act is amended by
inserting "or water and sewerage officer" after
"officer".
16. Part 7, Division 2: Heading repealed
Part 7 is amended by omitting the heading
"Division 2 -- General".
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17. Section 100 amended (Service of infringement
notices)
Section 100 of the Principal Act is amended as
follows:
(a) by omitting from subsection (1) "serve"
and substituting "issue and serve";
(b) by inserting the following subsections
after subsection (1):
(1A) A water and sewerage officer
may issue and serve an
infringement notice on a person if
the water and sewerage officer is
of the opinion that the person has
committed an infringement
offence.
(1B) For the purposes of
subsection (1A), an infringement
offence means an offence
against -
(a) section 56V(3),
section 56W(1) or (4),
section 56Z(2),
section 56ZD,
section 56ZH(2) or (3),
section 56ZI(1) or
section 56ZJ(1); or
(b) a provision of regulations
made under this Act that
is prescribed in
regulations to be an
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Water and Sewerage Industry Amendment Act 2011
Act No. of
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infringement offence in
relation to which a water
and sewerage officer may
issue and serve an
infringement notice.
(c) by inserting in subsection (3) "section 14
of" after "with".
18. Part 9: Heading inserted
The Principal Act is amended by inserting the
following heading after section 100:
PART 9 - MISCELLANEOUS
19. Repeal of Act
This Act is repealed on the ninetieth day from
the day on which it commences.
Government Printer, Tasmania 15