ESTABLISHING a set of water charge rules that apply across the Murray Darling Basin will send clearer pricing signals and aid the development of water markets, the nation's competition watchdog says.
The Australian Competiton and Consumer Commission today issued its position paper seeking submissions on the development of rules for charges on water planning and water management activities.
"This position paper relates to rules applying to charges levied to recover the costs of water planning and water management activities," the ACCC said in a statement.
"The ACCC proposes to develop enforceable rules to require the publication of water charge information and voluntary model rules for reporting on water planning and management activities and costs (including any associated charges)."
Acting ACCC chairman, Michael Schaper, said when users understood the costs of activities associated with the planning and management of water resources, they could "make better decisions about the water they use".
"This will also mean that users and the general public have better information about water planning and management activities, which are funded through water charges and general taxation," Dr Schaper said.
The ACCC said it did not propose to make price determinations for water planning and management charges now, given the limitations on its power to regulate water planning and management costs under the Water Act 2007 and the diverse cost recovery arrangements across the basin.
Under the National Water Initiative, basin jurisdictions have committed to adopting consistent ‘user pays’ approaches to pricing and attributing the costs of water planning and management activities.
A copy of the position paper, which includes details on how to make a submission, is available from the ACCC website, www.accc.gov.au. Submissions should be provided to the ACCC by 5 p.m. on Friday, 27 February 2009.
