Addressing Long-Term Challenges in the Australian Water Industry
Insights From Victorian Water Businesses
July 05, 2023DownloadsDownload Whitepaper
Water companies in Australia face a number of challenges, including population growth, increased urbanisation of the population, ageing infrastructure, climate variability and environmental sustainability. To meet these challenges, water businesses are investing in water security measures, as well as measures around biodiversity and regenerative land use. Community expectations and new government legislation have also seen water businesses invest in cybersecurity, digital metering and smart networks, and emissions reduction initiatives.
FTI Consulting's Economic & Financial Consulting team was engaged by the Essential Services Commission (the ESC) to undertake an independent expert review of Victorian water businesses’ operating and capital expenditure forecasts for the 2023 price determination.
The review was the second application of the Commission’s performance, risk, engagement, management and outcomes (PREMO) framework, introduced in 2018. A key focus of our assessment was on drivers of increased costs, the strategies to manage those costs, and efficiency savings. Regulators will need to continue working with the industry to overcome future challenges while ensuring that water remains affordable for consumers.
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