We worked with the Queensland Water Commission (QWC) as its strategic and policy advisers on the development market reforms through the water value chain, initially on possible transactional frameworks for the purchase and sale of bulk water by the South East Queensland Water Grid Manager (SEQWGM) and later on developments to the transactional and regulatory framework. This was a policy level assignment - working closely with the senior staff at QWC and the Commissioners to meet strategic policy objectives for the water sector in the State at a time of serious water shortages, major infrastructure investment and structural change in the sector.
Key elements of the assignment involved developing the interim transactional and regulatory framework to put in place appropriate efficiency drivers on the vertically and horizontally separated entities – both through the application of price controls but also through the development of the commercial framework. The development of these proposals required the balancing policy objectives regarding cost recovery, and the pricing of water services to reflect longer term price signals regarding sustainable levels of water usage.