EXPLANATORY STATEMENT
Cocos (Keeling) Islands Act 1955
Utilities and Services Ordinance 1996
Water and Sewerage Services Fees and Charges Determination 2012
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 Water and Sewerage Services Fees and Charges Determination 2012 (the Determination) sets the fees for water and wastewater charges on Cocos(Keeling) Islands and replaces the Determination of Fees for Water and Sewerage Services No.4 of 2011.
It is government policy that wherever possible there should be parity between the prices charged in the Territory and those charged in Western Australia. Broadly speaking fees and charges for water and sewerage services are calculated based on whether the property is residential (which is further defined as a private dwelling house, home unit, or flat and includes any yard, garden or outhouse), non-residential, government, exempt (i.e. charitable, religious) or vacant land.
In WA, fees and charges for water and sewerage services are set annually and aim for full cost recovery. Full cost recovery includes the cost of production; cost of depreciation plus a return on asset (confirm this). However in recognition of some high cost, small customer base schemes, only partial cost recovery occurs.
The fees set in the Determination are working towards those rates and charges that apply in Western Australia and these charges are considerably less than the cost of supply.
Schedule 1 Fixed Charge for Water
Residential - Water
A fixed charge is imposed for the provision of water services.
Non-residential – water
Fixed charges for Commercial and Industrial properties have been reduced by at least 32.6% in line with WA reforms to standardise service charges to 20mm residential equivalent units.
Schedule 2 – Fixed Charges for Sewerage
Reforms introduced last year to bring charges for sewerage into line with WA over three years continue. Annual increases are limited to 50% of the difference between the 2011-12 and 2012-13 annual charges.
Residential - Wastewater
Residential properties are charged an annual service charge based on the property’s Gross Rental Value (GRV), which is supplied by the Valuer General. The fixed charge for sewerage is calculated by multiplying the GRV by a ‘rate in the dollar’ and is subject to a minimum and maximum charge.
A ‘rate in the dollar’ is calculated by estimating the cost to operate the scheme and includes such things as estimated operating costs, depreciation on assets and return on assets. For high ‘rate in the dollar’ schemes the rate is capped at 12 cents and Water Corporation calculates that Cocos(Keeling) Islands scheme is a high ‘rate in the dollar’ scheme.
The Determination caps the ‘rate in the dollar’ at the maximum charge of 12 cents in the dollar and introduces a minimum and maximum charge in line with WA standards.
Non-residential – wastewater
Christmas Island non-residential charges for wastewater are based on the number of major fixtures at each property. (e.g. number of toilets).
Schedule 3 – Quantity Charges
In line with 2008 WA Government reforms customers are encouraged to save water and quantity charges will continue to be adjusted to reflect the real cost of the cost of providing water in country areas.
Residential
Water consumption is calculated from regular meter readings and then multiplied by a charge per kilolitre according to the ‘class’ appropriate to the area. A ‘class’ of water use charge (1 to 5) applies to different towns across Western Australia depending on the total cost to the Water Corporation of providing water from the local scheme.
To encourage the careful use of water, the charges are structured so that the price per kilolitre increases as more water is used. Each year Water Corporation reviews these costs and allocates a town or scheme to a ‘class’. Where the costs change significantly, the town or scheme is moved up or down a class progressively until it reaches the appropriate class.
Christmas residential properties have been moved from Class 4 to Class 5 - Water use price north of the 26th parallel and the Determination reflects these changes to the cents per kilolitre charged.
Non-residential
In WA each scheme is classified according to the cost to operate the scheme. Towns are then classified and customers charged water consumption according to Band 1-15 Non-residential water consumption rates. To encourage the careful use of water, charges within each band or class are structured so that the price per kilolitre increases the more water is used.
Due to the cost to operate the scheme Cocos(Keeling) Islands non-residential properties have been reclassified from Band 10 to Band 11 Non-residential water rates and changes will continue each year until it reaches band 15. These increases are reflected in the Determination.
A quantity charge for sewer volume discharge applies throughout WA and encourages customers to look at ways to minimise discharge to sewer (e.g. water efficient appliances, dual flush toilets, low flow shower roses and taps, etc.)
Schedule 4 – Building Application Fees
A standard increase of between 3.5% and 3.6% has been applied in line with changes to comparable WA fees and charges.
Schedule 5 – Other Fees
A standard increase of between 3.6% and 3.7% has been applied in line with changes to comparable WA fees and charges.
Consultation
The delivery of water and sewerage service in the Cocos (Keeling) Islands are provided under a service delivery arrangement with the Western Australian Water Corporation. The fees and charges specified in this Determination were set in consultation with Water Corporation and are similar to those applying to country Western Australian customers. In the same way as such charges are determined and set in Western Australia and other Australian States, no other consultations (including businesses potentially affected by the increases) were appropriate.
The Determination commences on 1 July 2012.
Approximate rates of increase in the various fees from the previous year are described below:
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Statement of Compatibility with Human Rights Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Water and Sewerage Services Fees and Charges Determination 2012
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument The Legislative Instrument sets the annual fees and charges for water and sewerage services within the Territory. Human rights implications Legislative Instrument does not engage any of the applicable rights or freedoms. Conclusion This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
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