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MHC supports bulk water authority with regulatory determination

Ben Woodman — March 2011

Recent Engagement: A bulk Australian water authority engaged MHC to conduct an independent benchmarking study covering the key metrics of expenditure and resource levels in support of its submission to the economic regulator. Publically available data was used to compare the business to a peer group consisting of Australian and New Zealand bulk water authorities. Indicative efficiency, productivity, cost and revenue ratios formed the basis of the comparison to the peer group.

MHC held a series of executive planning workshops to establish the scope, approach and metrics for the benchmarking study. Once agreed, a peer group of Australian and New Zealand bulk water authorities was selected based on similar characteristics to the client to compare performance.

The data collected from the public domain included annual reports, water plans, regulatory submissions and National Water Commission performance reports. A detailed data pack with supporting guidelines was developed to assist the client in collecting its own data, and to ensure a ‘like-for-like’ comparison to the peer group.

The client obtained an in-depth understanding of their performance through the comparison of efficiency, productivity, cost and revenue ratios to a peer group of Australian and New Zealand bulk water authorities, and successfully used this information within a regulatory context.

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