Creating a dynamic water industry

The Water Industry Competition Act 2006 and the Regulations supporting its implementation (the Water Industry Competition (General) Regulation 2008 and the Water Industry Competition (Access to Infrastructure Services) Regulation 2007) commenced on 8 August 2008. The objectives of the Act and supporting Regulations are to encourage competition in the water industry and to foster innovative recycling projects and dynamic efficiency in the provision of water and wastewater services.

Increasing competition in the metropolitan water market and water recycling are key actions in the NSW Government�s Metropolitan Water Plan and State Plan.

The core reforms introduced by the Act are:

the establishment of a new licensing regime for private sector providers of reticulated drinking water, recycled water and sewerage services
provisions to authorise IPART to arbitrate certain sewer mining disputes
the establishment of a third-party access regime for water and sewerage infrastructure.

Key aspects of General Regulation include:

ensuring new entrants and the public water utilities face similar obligations, where like services are provided
strict licensing rules to ensure that drinking water meets Australian standards, that recycled water is �fit for purpose� and that all services are delivered in a safe, reliable manner with minimal environmental impacts
provisions to prevent retailers from disconnecting small customers for non-payment of debt and to require the implementation of NSW Government social policies, such as pensioner rebates.

Background information

Meeting the challenge of securing greater Sydney's water supply in the long-term and in drought requires the innovation, resources and cooperation of both the Government and the private sector.

New South Wales is leading Australia in introducing competition to the metropolitan water industry by harnessing the resources of the private sector and directing the forces of competition to help secure greater Sydney's water future.

In November 2006, the Water Industry Competition Act 2006 (the Act) was passed by the NSW Parliament. The Act was developed by the NSW Government to encourage competition in the water industry and to promote the development of infrastructure for the production and reticulation of recycled water.

Regulations concerning the access regime established under Part 3 of the Act were the subject of a separate public consultation process. These were gazetted in December 2007. Click here to view these Regulations.

A consultation paper on the General Regulation was released in June 2007. The draft Water Industry Competition (General) Regulation 2008 and associated Regulatory Impact Statement were released for public consultation in April 2008. You can view the submissions received in response to the draft Regulation.

These are significant micro-economic reforms by the NSW Government. Implementation of these new rules will inject greater competition and innovation into the metropolitan water and wastewater industries, starting with the greater Sydney and Hunter regions, and maximise the opportunities for water recycling projects.

These reforms have been subject to extensive community consultation, including the release of a number of discussion papers, stakeholder briefings and a public investigation conducted by the Independent Pricing and Regulatory Tribunal (IPART).

The Consultation paper: Creating a dynamic and competitive metropolitan water industry and the Regulations Consultation Paper have more information.

View the frequently asked questions page for creating a competitive and dynamic metropolitan water industry.

To find out more view Chapter 9 of the Plan.