EXPLANATORY STATEMENT
Cocos (Keeling) Islands Act 1955
Utilities and Services Ordinance 1996
Determination of Fees for Water and Sewerage Services No.1 of 2007
Section 3 of the Utilities and Services Ordinance 1996 (the Ordinance) authorises the Administrator to make provision for the supply and use of utilities and services in relation to, amongst other things, water and drainage and sewerage in the Territory. Section 4 of the Ordinance provides that the Administrator is to impose a fee for the provision to a person, or the use by a person, of such utilities and services.
The Determination of Fees for Water and Sewerage Services No.1 of 2007 (the Determination) sets the fees for water and wastewater charges in the Cocos (Keeling) Islands and replaces the Determination of Fees for Water and Sewerage Services No.1 of 2006.
It is Government policy that there should be parity between the prices in the Territory and those in Western Australia wherever possible. The fees set in the Determination are substantially the same as those which apply in Western Australia and are considerably less than the cost of supply. Accordingly, consultation on the fees was not undertaken.
The Determination commences on 1 July 2007.
Overview
The Cocos (Keeling) Islands Act 1955, along with the Utilities and Services Ordinance 1996, provides the legal framework for the administration of utilities and services, including water and sewerage, in the Cocos (Keeling) Islands. This legislation was enacted to address the need for a structured approach to the supply and use of essential utilities within the Territory, ensuring that residents and businesses have access to necessary services. The Determination of Fees for Water and Sewerage Services No.1 of 2007 was introduced to establish the fees for water and wastewater services, replacing a previous set of fees from 2006. The fees are set with the policy objective of maintaining parity with those in Western Australia, where feasible, and are considerably less than the cost of supply. Given the similarity to Western Australian fees, consultation on these fees was deemed unnecessary. The Determination took effect on 1 July 2007, ensuring a consistent and transparent fee structure for water and sewerage services in the Territory.
Scope and Application
The Cocos (Keeling) Islands Act 1955, along with the Utilities and Services Ordinance 1996, provides a legislative framework governing the supply and use of utilities and services, including water and drainage and sewerage, within the Territory of the Cocos (Keeling) Islands. Specifically, Section 3 of the Ordinance empowers the Administrator to establish provisions for these utilities and services, while Section 4 mandates the imposition of fees for the provision or use of such services by individuals. The Determination of Fees for Water and Sewerage Services No.1 of 2007, which supersedes its 2006 counterpart, outlines the fees applicable to water and wastewater services within the Territory. This determination reflects the Government's policy of maintaining price parity with Western Australia where feasible, setting fees that are substantially equivalent to those in Western Australia, albeit significantly lower than the actual cost of supply. Given the alignment with Western Australian prices, consultation on these fees was deemed unnecessary. The fees established in the Determination commenced on 1 July 2007.
Key Provisions
The main operative sections of the Determination of Fees for Water and Sewerage Services No.1 of 2007 (the Determination) establish the fees for water and wastewater services on the Cocos (Keeling) Islands, as authorised by section 3 of the Utilities and Services Ordinance 1996 (the Ordinance). This legislation specifies the fees for the supply and use of water and sewerage services in the Territory (section 4). The fees are set to align as closely as possible with those in Western Australia, reflecting government policy aimed at maintaining parity between the Territory and Western Australia wherever feasible (section 3). This determination is effective from 1 July 2007.
The Determination imposes certain obligations on the parties or entities it governs. Firstly, it mandates the Administrator to set fees for the provision and use of water and sewerage services, in accordance with the provisions of the Utilities and Services Ordinance 1996 (section 4). It is also the responsibility of the Administrator to ensure that these fees are aligned with those of Western Australia, to the extent that this is practical and consistent with the objectives of the legislation. Given that the fees set out in the Determination are substantially the same as those in Western Australia, it is evident that the Administrator must regularly review and adjust these fees to maintain this alignment and ensure that they remain less than the actual cost of supply.
Failure to comply with the provisions of the Determination may lead to certain consequences. Although the Determination itself does not explicitly outline specific offences, penalties, or consequences for breach, such violations could potentially be subject to the broader provisions of the Utilities and Services Ordinance 1996. Under this Ordinance, breaches may result in both civil and criminal penalties. For instance, under section 11 of the Ordinance, any person found guilty of contravening the provisions of the Ordinance may be liable to a penalty not exceeding the equivalent of 100 penalty units, which as of 2023, amounts to AUD 11,000. Additionally, section 12 of the Ordinance stipulates that in the case of corporations, the maximum penalty could be as high as 500 penalty units, or AUD 55,000. These penalties underscore the importance of adhering to the legislative requirements set forth by the Determination.