The Independent Competition and Regulatory Commission (ICRC) has invited public comment on how it should forecast demand for water and sewerage services in the ACT.
In its issues paper, Review of water and sewerage services demand forecasting methodology, the ICRC said it would review the methods used to forecast demand for the services.
“Good demand forecasts are important because they help us to set prices that allow Icon Water to recover only prudent and efficient costs,” the ICRC said.
“Good demand forecasts help Icon Water plan its operations and investment program to meet demand,” it said.
“They also help us estimate the cost of providing services, including assessing the prudency and efficiency of Icon Water’s proposed expenditure during our price investigations.”
The ICRC said its review would determine the forecast methods used in the next water price investigation, expected to start later this year.
The Commission said it would review five demand components needed to determine maximum water and sewerage prices, including total water releases by damns; billed water sales; the number of water service connections; the number of sewerage services consumers; and the number of additional billable fixtures.
“We use the forecast volume of water releases in each year to estimate the billed water sales in the ACT,” it said.
The ICRC said submissions on its Issues Paper were open until 25 June.
The Commission’s 60-page Issues Paper, including information on how to have a say, can be accessed at this PS News link.
