Urban Water: A Roadmap for National Reform

In 2008, in association with the Allen Consulting Group, Global Access Partners ran a series of forums for a group of key officials and regulators from the Commonwealth, New South Wales and Victorian governments, as well as the water industry, who were brought together to address the major challenges facing the urban water sector.

The objective was to develop a vision for urban water pricing, investment and regulation which would support the long term economic, environmental and social needs of Australia in the context of a changing climate. The Forum's final report entitled "Urban Water: A vision for national road map for national progress" maps out a pathway and key actions to achieving this vision, drawing on formal analysis and input from industry and government practitioners.

The report was launched on 4 August 2009 at Parliament House in Canberra by the Hon. Dr Mike Kelly AM, MP, Parliamentary Secretary for Water.

Learnings from the Forums

The final report presents an achievable vision and a practical road map for addressing one of Australia's most pressing issues - the sustainable supply of water to our cities. The road map and its accompanying recommendations have been developed by the Allen Consulting Group flowing from discussions among a group of water industry and policy experts, which have come together in a forum under the auspices of Global Access Partners (GAP). The report's vision is for an urban water future in which:

There is a secure level of water supply to meet society's essential needs, society has confidence in the quality of water, and that consumers (particularly the vulnerable) and the environment are appropriately protected.
Households have the freedom to choose from a range of options and can afford their basic water needs.
Businesses and communities can access secure supplies of water in the least cost manner.
The water and wastewater industry have the incentive and the means to meet society's water needs at lowest-cost without facing unnecessary constraints.

Summary of recommendations

1. That Australian Governments commit to establishing a competitive urban water market supported by effective regulation so as to achieve a vision consistent with the principles above.

2. That this vision is best implemented in a phased and contingent manner through the adoption of an interim industry structure featuring competition in bulk supply, which would be reviewed before proceeding to a fully competitive retail market. 3. That the first steps towards the interim structure be taken as soon as possible and include the following four priority actions:

a. Conduct detailed accounting of regulated water utilities

b. Remove unnecessary constraints to competition in water and waste-water services

c. Trial use of entitlements to water supply for retailers and large users d. Develop a model for a more independent, transparent and integrated water resource and grid planning.

4. That an initial period of research over the next one to two years is required to underpin the reform program. This research is best be undertaken on a cooperative basis through COAG and should include:

a. Design of the four priority actions identified

b. Initial design of interim market and industry framework

c. Detailed design of the interim market and industry framework.

Download a copy of the report here...