How will the Amending WIC Act affect you? Information session - PowerPoint PPT Presentation

How will the Amending WIC Act affect you? Information session Water Licensing and Compliance 9 October 2017

Opening remarks Narelle Berry, Director, Water Licensing and Compliance 2

What is this afternoon about? What does the new regulatory framework look like? 1. What will happen to current licensees (transitional 2. arrangements)? Process improvement projects under the existing 3. WIC Act. 3

The Amending WIC Act What does the new regulatory framework look like? Zoe Moffat, Principal Analyst 4

In a nutshell … The Amending WIC Act includes: Narrower scope of the licensing regime. 1. Brings metropolitan councils’ operating schemes into 2. the framework. New licensing and approvals framework. 3. New compliance framework. 4. Includes operator of last resort provisions. 5. 5

Who needs an approval/licence? Water industry infrastructure: providing water or sewerage services to 30 or more 1. small retail customer premises (Category A scheme) drinking water production >500 kL/day 2. sewage treatment >750 kL/day 3. as declared by the regulations 4. 6

An overview of the framework Operator’s licence (s8) (required to operate water industry infrastructure) s20E(3) s20E(3) Operator Requirement to Requirement to comply with any comply with any (licensed operator) relevant conditions relevant conditions ‘Suitable ‘Suitable agreement’ agreement’ Scheme approvals Design approval Operational (s6) Person Infrastructure approval (s7) (required to carry out works for the (required for the water constructing owner construction, industry infrastructure infrastructure (operational approval installation or to be operated by a holder) (design approval holder) alteration of water licensed operator on a industry commercial basis) infrastructure) ‘Suitable Retailer’s licence agreement’ (s9) (required to sell water or sewerage services Retailer by means of a (licensed retailer) 7 Category A scheme)

Implied customer contracts Land owner Customer Customer contract contract Licensed Licensed retailer operator 8

Who will approve the instruments? Approve Assess Compliance/monitoring requirements Operator’s IPART Minister licence Retailer’s licence IPART Minister Design approval IPART IPART Operational IPART IPART approval 9 Scheme approvals

Assessment requirements Design Operational Licences Criteria approval approval (OL/RL) (DA) (OA) Suitable corporation    ‘Management criteria’ Capacity (technical, financial,    organisational)    Objects of the WIC Act    Public interest    Regulation    Submissions 10

Assessment requirements Design Operational Licences Criteria approval approval (OL/RL) (DA) (OA)   WQOs and standards audit  Financial viability  Financial impacts on customers   * Suitable agreement for operation   * Capacity of operator  Infrastructure constructed  Suitable agreement with retailer  Last resort provider designated * Applicable only if there is no relevant design approval. 11

Variations/transfers/cancellation Licences Design Operational (OL/RL) approval (DA) approval (OA) Class of Variation? infrastructure Works × (OL) Variation of    conditions   Transferrable? × Can be surrendered -   Cancellation? Ministerial consent 12

Scenarios 13

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Transition What will happen to current licences? Javier Canon, Analyst

What will need an approval / licence? Water industry infrastructure: providing water or sewerage services to 30 or more 1. small retail customer premises (Category A scheme) drinking water production >500 kL/day 2. sewage treatment >750 kL/day 3. as declared by the regulations 4. 16

How will the existing licences be transitioned? Scheme ▼ Don’t need to apply (OL, RL and OA) inside YES ▼ No application fees scope? NO Category A scheme Category A and others scheme ▼ Can apply (OL and RL) ▼ Within 28 days ▼ No application fee ▼ Declared a WICA provider RL OL/DA/OA 17

How will the network licences be transitioned? Existing WIC Act After transition Licensee Licence Licensee Licence Operational Infrastructure Infrastructure approval owner owner Person Person Design constructing constructing approval infrastructure infrastructure Key: Person Instrument 18

How will the network licences be transitioned? Existing WIC Act After transition Licensee Licence Licensee Licence Conditions Operational Infrastructure Infrastructure approval owner owner Person Person Design constructing constructing approval infrastructure infrastructure 19

How will the network licences be transitioned? Existing WIC Act After transition Licensee Licence Licensee Licence Conditions Operational Infrastructure Infrastructure approval owner owner Person Person Design constructing constructing approval infrastructure infrastructure 20

Will your scheme be captured? Licensee/scheme RL OL/OA Veolia Water Australia (Rosehill/Fairfield) SPI Rosehill Network Aquacell (Bligh street) VWS&T Australia (Darling Walk)  Sydney Desalination Plant   VWS&T Australia (Bingara Gorge)   Pitt Town Water Factory Orica Australia   Central Park   Discovery Point 21

Will your scheme be captured (cont.)? Licensee/scheme RL OL/OA   Wyee Water Aquacell (Workplace 6)  Lend Lease (Barangaroo South)   Huntlee Water   Cooranbong Water Aquacell (Kurrajong)   Narara Eco Village   Box Hill   Solo Water (Catherine Hill Bay) Kooragang Island (Suez) 22

Other considerations Customer contract Essential infrastructure 23

How will licence applications be transitioned? 24

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WICA6 process improvements Maria Morahan, Principal Analyst 26

We asked you for feedback Application form Timelines Consistency Compliance 27

Application form ‘The license form itself is ‘It is not clear how much detail is relatively easy to understand, required in answering the but what is being asked is questions.’ really onerous to complete.’ ‘It's not easy to understand what ‘We used the guidance materials they want from the application form and application forms. They were and is quite confusing. The form not useful. It is too complicated doesn't provide sufficient clarity and the form asks for too much about what is needed.’ information that isn't important.’ 28

Timelines and RFIs ‘It makes it very difficult to provide accurate timeframes for developers.’ ‘The problem isn't usually how it ‘We always seek further clarity [the RFI] is worded, but that it with a face to face meeting takes so long to get back to you before responding to an RFI to and then they request you to ensure they are clear on what resubmit [the application] when information is being sought.’ it's not necessary.’ 29

Consistency ‘The problem is that different assessors are asking for different types of information. So looking at your last application, you provide them upfront with everything they needed last time, but then a different assessor wants something else.’ 30

Compliance regime ‘There is a one size fits all approach that is overly prescriptive. I'm not sure how ‘The focus should be on achieving else they would do it but it compliance with minimal process, means some of the measures rather than on maximising the are irrelevant.' process and requirements without a clear focus on how they actually deliver compliance outcomes.’ Performance indicators ‘These are difficult to understand and confusing, even after reading the reporting manual in detail. It is not clear where information is supposed to go.’ 31

How are we addressing your concerns? Reviewing the application form. 1. Developing user-friendly supporting material. 2. Updating and streamlining current internal processes 3. for application assessments. Reviewing the IPART Compliance and Enforcement 4. Policy. Updating the auditing requirements based on good 5. compliance history. Looking at the performance indicators. 6. Implementing an online portal. 7. 32

Online portal for applicants The online solution will enable applicants to: ▼ Lodge applications via the web ▼ Track progress of application in real time ▼ Attach/manage supporting documents ▼ Receive and respond to RFIs, notifications, and ▼ Contact IPART’s assessment team directly for any concerns/issues. 33

Online portal for licensees Once the licence is granted, licensees would be able to: ▼ View and manage their licences ▼ Update contact details ▼ View their licence and compliance obligations in one spot ▼ Report, track and manage non compliances and incidents ▼ Receive notifications from IPART ▼ Attach reports, documents etc. as required by reporting manual, and ▼ Contact IPART’s compliance team directly for any concerns/issues. 34

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What next? Narelle Berry, Director, Water Licensing and Compliance 36