Industries: Water

On-Bill Financing

There is a market for On-Bill financing (e.g. Solar Financing) where a case can be made that the bill savings resulting from capital-intensive efficiency products are more than the regular repayment costs. Whilst the practice is becoming popular overseas, in Australia, the market is largely untapped … for now. Context Figure 1, below, illustrates how…


Turning off the tap of CAPEX is giving rise to significant changes in the water industry

In June 2013, the Essential Services Commission (ESC) released its final decision on Victoria’s prices to apply to water and sewerage services for the regulatory period 2013/18. A high-level analysis of Victoria’s historical and forecasted capital expenditure (CAPEX) has identified an overall 50% decline in average CAPEX in the period 2008/09 through to 2107/18 (shown…



Comparing the intergenerational inequities of governance and operating models for an urban water provider in a time of economic decline

Wide Bay Water Corporation (WBWC) is a Queensland Local Government Owned Corporation (LGOC) providing water and wastewater services to residents and businesses of the Fraser Coast. WBWC transformed from operating within Council to a corporatised entity owned by Fraser Coast Regional Council (FCRC) under the National Competition Policy (NCP) economic reform. The Fraser Coast has…


Significant pressure on the efficiency and effectiveness of operating and capital expenditure

As much of Australia’s east coast is no longer considered to be battling the effects of drought experienced in the first decade of this century, the expectation on water utilities will be to refocus their efforts largely away from network augmentation and rehabilitation to determining more efficient and effective expenditure programs to meet their water…


Developing a comprehensive economic forecast based on the Maximum Allowed Revenue Requirement and Regulatory Asset Base for an urban water and waste water provider

Wide Bay Water Corporation (WBWC), an urban water and wastewater service provider, needed to amend its existing 10-year financial plan to ensure its consistency with economic and regulatory precedents. WBWC, operating as a Local Government Owned Corporation (LGOC), had a price path set by the shareholder, and was required to return dividends to the shareholder….



Smarter systems procurement: understanding the CIS and billing systems market gives water businesses an investment head start

Companies contemplating a new CIS and billing system need to be informed – not just about their own needs, but about the market they are entering. There are many examples of troubled and expensive system implementations which underline the importance of early engagement with providers, and understanding what is available. Often, smarter systems procurement is…


 Our system decision – should we upgrade or replace?

Background Following the water industry’s reform in the mid 1990s, businesses faced significant decisions when building their organisational structures and purchasing the IT systems to support them. At the time, enterprise-wide systems were biased towards finance and accounting solutions, with limited capacity in asset management and operational functions. Water utilities typically adopted core enterprise-wide systems,…