DISALLOWABLE INSTRUMENT
UTILITIES (WATER ABSTRACTION CHARGE) MINISTERIAL DIRECTION 2003 (NO 1)

EXPLANATORY STATEMENT

Circulated with the authority of 
Mr Ted Quinlan MLA
Treasurer

Explanation of the Disallowable Instrument 
Utilities (Water Abstraction Charge) Ministerial Direction 2003 (No 1)

The Disallowable instrument will provide for the Treasurer to direct the Independent Competition and Regulatory Commission to direct the ACTEW Corporation to pass on the Water Abstraction Charge determined under the Water Resources Act 1998, section 78, to its customers at the customer’s metering point.  The Commission will advise the ACTEW Corporation of the parameters for the application of the charge as set by the Government.  This includes the implementation date and the application of the charge on a pro rata, or other basis.

The Water Abstraction Charge does not form part of the price path that the ACTEW Corporation apply to water and sewerage services as determined by the Commission.  The Water Abstraction Charge was established by the Government under the Water Resources Act 1998 in 1999 and is set by the Government.  The charge is imposed to recover catchment management costs and to reflect the environmental cost of the extraction of water and the value of water as a resource.  These costs are incurred by the Government, as opposed to ACTEW.

The Disallowable instrument is made under the Utilities Act 2000, section 19 (Ministerial directions).