Greater Western Water application for regulatory period extension 2021

We have approved an application from Greater Western Water for a 12-month extension to its current regulatory period, to 30 June 2024.

Its regulatory period was set to end on 30 June 2023 as outlined in the price determinations for City West Water and Western Water. 

Greater Western Water was established in July 2021 from the integration of City West Water and Western Water. The City West Water determination was made as part of our water price review 2018, and the Western Water determination as part of its 2020 price review.

Reasons provided for the extension request

Greater Western Water has proposed that a 12-month extension to its determination would allow them 'to develop a greater level of understanding of the unique circumstances of integration, and how we can deliver long-term benefits to our customers.'

'With additional time, we can:

• build knowledge of networks and systems, providing greater opportunity to optimise these assets as an integrated business before making commitments in a price submission
• properly consider how integrated costs may impact future tariffs while considering ways to streamline and simplify tariffs
• create long term value for customers while building resilience in the business from integration and connect our decision to our corporate plan.'

- Greater Western Water application letter

They have proposed that the proposed 12-month extension would help us to assess their proposed expenditure by ensuring 'the costs of the integrated business are better understood'.

They have also suggested it would allow more informed engagement with customers.

'An additional 12 months will ensure that our customer and community engagement with our customers will be informed by our deeper level of understanding of the integrated business. Customers will benefit from an engagement program underpinned by our integrated asset strategy that captures the efficient costs across the integrated service area, made possible by the proposed extension.'

- Greater Western Water application letter

We approved the extension application on 1 December 2021.