new regulatory framework presentation

The Queensland Water Industry – Regulatory Reform 2014

Overview of rationale for reforms

• Moving from process regulation to outcome regulation

• Improving transparency for customers and ratepayers

• Improving the information available to government for regulation AND for support

• Empowering providers to implement local or regional solutions to local problems

Update on progress

• Bill – Not yet passed

• Committee Report– State Devt Industry & Infrastructure Committee has

recommended Bill be passed

• Likely debate date– Should be in the May sitting of Parliament– Some modifications to SEQ connections as a result of DSDIP

policy development.

Summary of key reforms

1. Performance based reporting

2. Improved transparency and accountability

3. Simplification of recycled water framework

4. Minor amendments

5. SEQ connections policy (not in scope for this workshop)

Performance based reporting

• Annual reporting on KPIs

– 62 for <10 000 cx– 62 + most NPR for >10 000 cx (about 140 extra)– Reporting will be public

• Comparative report issued by DEWS

– Strategic level– NPR indicators shared with NWC– Comparative data will also be made available

Performance based reporting - Removal of plans

• SAMP/SLMP/DMP/OWCP

– Long-term asset management plan under LG Act still required

– DWQMP and RWMP for higher exposure schemes still required

• Ability to make minor changes to DWQMP without approval

– No changes to dam safety framework

Improved transparency and accountability

• Comparative report will do much of the work

– Escalating scale of regulatory action– Increased reporting frequency – water security

• Publication of annual report

• Publication of improvement plans

• Removal of need to submit plans for lower exposure schemes

• Does not affect– Potable reuse– Dual reticulation– Minimally processed food crops

• Lower exposure schemes still:– Must be registered– Attract Public Health Act ‘fit for use’ provisions– Fall under WHS legislation and EP/Waste Reduction Act

• Separate legislation is also removing regulation of CSG produced water through recycled water provisions

Simplification of recycled water framework

• Clarification of state of play regarding water meters– Provides that a WSP authorised person installing a main

meter or doing related work does not commit a P&D Act offence

• Committee has accepted that the law is currently ambiguous

– Removal of requirement for tenant advice notice

• SEQ only– Removes need for draft charges to be published,– Increases number of councillors permitted on boards– Ensures linkages for TWCM continue if councils have

TWCMP– Repeal of Metropolitan Water Supply & Sewerage Act 1909

Minor amendments

• Due 1 Oct 2015 (if Bill passed)– NPR timings will be adjusted to suit

• Does not affect drinking water quality reporting

• Designed for ease of reporting through SWIM– Working with qldwater to ensure SWIM is effective– SWIM local will be available for small providers– DEWS will also offer a flat spreadsheet option if you choose

not to use SWIM

Detail on performance reporting – annual report process

• Basic class – all local governments & similar providers– 62 indicators (all QG except 63, 64 & 65)

• All local governments with connections ≥10 000– 23 indicators plus NPR – about 200 indicators

• Local governments drawing solely from a bulk supplier– No reporting on water security indicators

• Bulk suppliers– no reporting on retail indicators

• REPORTING CLASSES ≠ COMPARATIVE CLASSES

Detail on KPI classes

Comparative report

• Likely to be strategic and sector-wide in early years– Not going to be NPR like

• Topics expected to be covered– Prices– Costs– Water security and efficiency– Customer service– Asset sustainability and performance

• Can use other sources of data

• Likely to be supported by open data visualisation

Detail on customer service standards

• Likely to require providers to set targets for – total water main breaks

– total sewerage main breaks and chokes

– non-revenue water

– incidence of unplanned interruptions

– water quality complaints

– total water and sewerage complaints

– average response/reaction time for incidents.

• Due by 31 December 2014 or six months after commencement

• No exemptions if in your regulator notice• No penalty for not meeting your targets

Transparency of reporting

• Providers will be required to publish (on internet)– Customer service standards

– Drinking water quality management plan reports

– Performance reports

– Guidelines for WEMPs

– Service area maps

• RW Providers will be required to maintain copies of RWMPs and reports

• RW Providers will be required to publish annual reports

• In discussion with QAO at the moment– Looking for the lightest touch that meets regulatory needs

– May be a simple addition to the QAO annual audit covering basis of some indicators

– QAO assisting us to develop guidance on what level of detail is necessary

• Fundamentally, transparency will do a lot of the audit work

• NPR audits being reviewed by DEWS in consultation with recently audited providers– Not clear that the NPR process passes cost/benefit hurdle– May be substantial scope to simplify or to take a Qld only

approach

Detail on audit processes and basis of preparation

• Use the urban water reform project address• [email protected]

• Call me–Richard Scott 3166 0126 or 0419 515 622

Support availability

mailto:[email protected]

Support Program

•The 2014 support program:

•is phase 4 of the indigenous regulatory support program;•consists of routine regular visits to non-indigenous service providers;•facilitates compliance with DWQMP and associated reporting; and•will be used to support the implementation of the KPI framework.

•We would encourage you to let us know what you would like assistance with when we are heading out to your area.

•It will help us to make sure we are prepared and bring the correct support materials with us, providing you with a better level of support customised as far as possible to meet your needs.

Support Program Trip MapAttachment 2

Trip 1

Trip 3

Trip 4

Trip 2

Trip 5

Trip 6

Trip 7

Trip 8

Trip 9

Trip 10

Trip 11

Note: Due to their remoteness, (e.g. driving distance) Boulia and Diamantina Shire Council have not currently been included with any other trips. It is the intent of the regulator to either arrange to either meet at an alternate location (e.g. Windorah, Winton, or Longreach), or to arrange a separate flight to visit these providers.

Support Program Visit Schedule2014/15 M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T

July 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

August 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

September 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

October 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

November 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

December 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

January 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

February 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

March 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

May 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

June 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Legend: Public Holiday School holidays Rec Leave Trips Non-indigenous trips

Indigenous trips

Trip 1 - Torres Shire

Trip 3 - Weipa

Trip 4 - Kowanyama

Trip 7 - Cherbourg

Trip 6 - Woorabinda

Trip 8 - Palm Island

Trip 5 - Morinington / Doomadgee

Trip 2 - Cook Shire

Trip 9 - Southern Region

Trip 10 - Central West Region

Trip 11 - Central East Region

Trip 10 - Southern Region

Trip 2 - Cook

KP definition discussion

Report Requirement Notice

• The Report Requirement Notice will be issued after the new legislation is passed and the assent date given.

• The notices will be tailored to each individual service provider, only those providers that receive a notice will be required to report. They will be required to report against all of the Key Performance Indicators listed in the attachment to their Notice.

• The regulator and the policy team within DEWS will provide support to service providers who are having difficulties. Any support material provided to providers will have appropriate contact details of someone who can assist to answer questions.

• DWQMP Reporting (periodic and Annual) are separate from the KPI’s reporting requirements and will still be required to be reported against.

Report Requirement Notice

Local Governments with >10 000 connections

Attachment 1: Key Performance Indicators - Local Government service providers >10,000 connections

In addition to the below table, service providers must report on all applicable indicators as part of the National Performance Reporting (NPR) framework. Details of applicable NPR indicators and definitions are to be sourced from the most current ‘National performance framework, urban performance reporting indicators and definitions handbook’ released by the National Water Commission.

Legend: (S) = scheme wide; (W) = service provider wide

Indicator code and title NPR/SWIM code

QG1- Length of water mains (S) A2/AS2

QG2 - Length of sewerage mains (S) A5/AS5

QG3 - Number of sewage treatment plants (S) A4/AS4

QG4 - Capacity of water treatment plants (S) -

QG5 - Maximum daily demand (S) -

QG6 - Total volume of potable water produced (S) W11.3/WA74

QG7 - Total treated/drinking water storage (S) -

QG8 - Volume of water sourced from surface water (S) W1/WA1

QG9 - Volume of water sourced from ground water (S) -/WA100

QG10 - Volume of water sourced from desalination of marine water (S) W3/WA3

QG11 - Volume of water sourced from recycling (S) W4/WA4

QG12 - Total water sourced (S) W7/WA7

QG13 - Connected residential properties – water supply (S) C2/CS2

QG14 - Connected non-residential properties – water supply (S) C3/CS3

QG15 - Connected residential properties – sewerage (S) C6/CS6


QG16 - Connected non-residential properties – sewerage (S) C7/CS7

QG17 - Volume of water supplied – residential (S) W8/WA8

QG18 - Volume of water supplied – commercial, municipal and industrial (S) W9/WA9

QG19 - Volume of water supplied (other) (S) -/WA120

QG20 - Volume of non-revenue water (S)

W10.0/WA36

QG21 - Months of supply remaining at end of reporting period (30 June) (S)

If response <12 months, then triggers QG23


-

QG22 - Total anticipated water demand for next reporting year (S) -

QG23 - Anticipated capacity to meet demand for next reporting year (at QG22) (S)

Only required if QG21 response <12 months -

QG24 - Available contingency supplies (S)


QG25 - Total anticipated annual water demand in five years’ time (S) -

QG26 - Anticipated capacity to meet demand in 5 years’ time (at QG25) (S)

If response NOT OK, then triggers QG27 -

QG27 - Planned supply system response (S)

Only required if QG26 response is reported as NOT OK -

QG28 - Water restrictions (duration) (S)

If response >0, then triggers QG29 -

QG29 - Water restrictions (severity) (S) -

Local Governments with >10 000 connections


QG29 - Water restrictions (severity) (S)

Only required if QG28 response > 0 -

QG30 - Total Full-Time Equivalent water and sewerage services employees (W) -

QG31 - Total water supply capital expenditure (W) F14/FN14

QG32 - Total sewerage capital expenditure (W) F15/FN15

QG33 - Nominal written-down replacement cost of fixed water supply assets (W) F9/FN9

QG34 - Nominal written-down replacement costs of fixed sewerage assets (W) F10/FN10

QG35 - Current replacement costs of fixed water supply assets (W) -

QG36 - Current replacement costs of fixed sewerage assets (W) -

QG37 - Total revenue – water (W) F1/FN1

QG38 - Total revenue – sewerage (W) F2/FN2

QG39 - Operating cost - water (W) F11/FN11

QG41 - Operating cost - sewerage (W) F12/FN12

QG43 - Annual maintenance costs water (W) Component of F11/FN11

QG44 - Annual maintenance costs sewerage (W) Component of F12/FN12

QG45 - Previous 5 year average annual renewals expenditure – water (W) -

QG46 - Previous 5 year average annual renewals expenditure - sewerage (W) -

QG47 - Forecast 5 year average annual renewals expenditure – water (W) -

QG48 - Forecast 5 year average annual renewals expenditure – sewerage (W) -

QG49 - Fixed charge – water (S) P1.2/PR3


QG50 - Fixed charge – sewerage (S) P4.1/PR31

QG51 - Total water main breaks (S)*

* Target level of service to be set in Customer Service Standard A8/AS8

QG52 - Component of water main breaks caused by third-parties (S) Component of

A8/AS8

QG53 - Total sewerage main breaks and chokes (S)*


QG54 - Component of total sewerage main breaks caused by third-parties (S) Component of

A14/AS39

QG55 - Annual bill based on 200 kL/annum water (S) P7/PR47

QG56 - Typical residential bill - water (S) P8/PR48

QG57 - Receiving waterway/s nutrient/sediment load reduction initiatives (W) -

QG58 - Source water/s nutrient/sediment load reduction initiatives (W) -

QG59 - Incidence of unplanned interruptions – water (S)*

* Target level of service to be set in Customer Service Standard C17/CS17

QG60 - Water quality complaints (S)*


QG61 - Total water and sewerage complaints (S)*


QG62 - Average Response/reaction time for incidents (including main breaks and

chokes) (S)*

* Target level of service to be set in Customer Service Standard

-/CS33

Local Governments with <10 000 connections

Attachment 1: Key Performance Indicators - Local Government service providers ≤10,000 connections
























W10.0/WA36




-

















Local Governments with <10 000 connections










QG40 - Current cost depreciation – water (W) -


QG42 - Current cost depreciation – sewerage (W) -












QG52 - Component of water main breaks caused by third-parties (S) Component of A8/AS8



QG54 - Component of total sewerage main breaks caused by third-parties (S) Component of A14/AS39












chokes) (S)*


-/CS33

Bulk Providers

Attachment 1: Key Performance Indicators – Bulk providers
















W10.0/WA36




-

















QG43 - Annual maintenance costs water (W) Component of

F11/FN11






Bulk Providers




QG63 - Operating ratio (W) F5, F6, F11, F12/FN5, FN6,

FN11, FN12

QG64 - Capital replenishment ratio (W) -

QG65 - Debt to revenue ratio (W) F5, F6/FN5, FN6

Distributor-Retailers

Attachment 1: Key Performance Indicators – Distributor-Retailers

















W10.0/WA36
























Distributor-Retailers




















chokes) (S)*


-/CS33

QG63 - Operating ratio (W) F5, F6, F11, F12/FN5, FN6,

FN11, FN12


QG64 - Capital replenishment ratio (W) -

QG65 - Debt to revenue ratio (W) F5, F6/FN5, FN6

SEQ withdrawn Councils

Attachment 1: Key Performance Indicators – SEQ withdrawn councils

















W10.0/WA36
























SEQ withdrawn Councils




















chokes) (S)*


-/CS33

KP definition discussion

new regulatory framework presentation

Government & Nonprofit

water metersprovides

reporting removal

ease of reporting

reportingannual reporting

bulk supplierno reporting

local problemsupdate

effectiveswim local

lg act