Information paper - A more accurate way to estimate LRMC - 8 July 2022

We are presently consulting on our draft report on our Water Regulatory Framework.  This package of reforms includes simplifications to the modelling work that supports our price assessments.  As part of this review we are reviewing the way utilities estimate their Long Run Marginal Cost (LRMC) of water supply and wastewater treatment.

We are publishing some technical information about a proposed new LRMC method for water supply: 

• a slide pack explaining the reasons for the proposed change, and

This approach is presented for discussion.  It is not currently IPART policy.  In particular, there has been no decision for utilities to consider this proposed method in proposing water usage prices. It could provide useful information to assist in proposing those prices.  We would like to hear your views on this proposed method.  We will organise workshops to more fully explore the proposed method in the near future.

Submissions are due 31 October. For further information contact Mike Smart at mike_smart@ipart.nsw.gov.au