Water Industry Bill 2010

Are you considering the impact on your Council?

Background

The water industry in South Australia has changed significantly in the last 81 years (dating back to when the Sewerage Act 1929wasenacted by the South Australian Government).  This was followed in quick succession by the Waterworks Act in 1932and the Water Conservation Act in 1936.  These acts were predicated on a single provider of water and sewerage services, a model which has become increasingly outdated in the last 5 years.  Now, with grey water reticulation systems throughout metropolitan Adelaide and stormwater retention and aquifer storage projects throughout the State, there is an increasing number of entities other than SA Water that will be providing water to consumers and receiving effluent from households and businesses; including councils.

The Bill

It is in these circumstances that the South Australian government has drafted the Water Industry Bill 2010 (the Bill).  The Bill will repeal the Sewerage Act, the Waterworks Act and the Water Conservation Act to replace them with a comprehensive system of regulation, licensing, pricing and administration of the various water industries throughout the State.

How does this affect Local Government?

Local Government owns thousands of kilometres of pipe infrastructure in the State, which is used to transport all kinds of water, including wastewater, sewerage and stormwater. If your council is involved in these activities, or owns pipes of this nature, then the Bill will affect you.

Regulation

Local Government is one of the sectors which is likely to be affected by the changes to the legislation proposed in the Bill.  In many cases, a Council will be a “water industry entity” because they will be involved in the provision of water services or sewerage services as those are defined in the Bill.  As result of this, these Councils will need to be licensed under the Bill.

Another important aspect of the Bill is that the Essential Services Commission of South Australia (ESCOSA) will be empowered to regulate water prices in South Australia, and generally oversee the water industry as they already do with electricity and gas. 

Powers

The Bill provides for water industry entities to have powers to enter on land where their pipes are situated, and to maintain their pipes, along with other powers. Councils will need to consider whether these powers affect them, either as a land-owner or as a water industry entity.

Consultation

The Bill is currently in a consultation phase, with consultation by the State Government concluding on 18 January 2011.  The Local Government Association is consolidating views of the local government industry, with submissions to them due by 31 December 2010.  The third consultation which is currently ongoing in relation to the Bill being undertaken by ESCOSA which will look to the various obligations of ESCOSA under the Bill and how issues relating to them will be addressed.  Submissions to ESCOSA are due by 28 January 2011.

Norman Waterhouse has extensive experience in the full range of Council water related activities and is working with a number of Councils to feed into the consultation process.

If you have any questions in relation to the matters raised in this Briefly or any other aspect of the Bill or the various consultations which are ongoing, please do not hesitate to contact Sean Keenihan, Partner on 8210 1293 or skeenihan@normans.com.au, Mark Henderson, Partner on 8210 1220 or mhenderson@normans.com.au or Yari McCall, Senior Associate on 8210 1265 or ymccall@normans.co.au. 

Related links:

Water Industry Bill 2010
Click here

Water Industry Bill – explanatory paper
Click here

ESCOSA consultation – Economic Regulation of the South Australian Water Industry – Statement of Issues
Click here

LGA consultation
Click here

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