Case Studies

Being a Regulated Business

As of 1 July 2005 City West Water’s prices are set by the Essential Services Commission (ESC) which is Victoria’s independent regulator of prescribed essential utility services, such as water, gas, electricity, ports, grains and rail freight.

We make submissions to the ESC for price changes and these submissions form the basis for the ESC’s final price determination. During the preparation of this submission, the ESC encourages input from all our stakeholders to ensure that all interests are represented in the price determination process.

When the ESC determines prices, they are based on forecast demand and business revenue requirements. These requirements are determined by the ESC based on a return on, and of, capital efficient operating costs and tax.

In 2008, City West Water will make its next price submission to the ESC. In the process of preparing this submission, we will seek input from a broad range of stakeholder groups, both internal and external. The ESC will use this submission as the basis for determination of prices for the following five years.