Icon Water continues to provide affordable services

July 3, 2017

The business entities known today as Icon Water and ActewAGL have been providing Canberra with reliable water and electricity services for over 100 years.

The operation and maintenance of the ACT’s water and sewerage network was effectively outsourced by ACTEW Corporation (now Icon Water) to ActewAGL in 2000 when the ActewAGL Joint Venture was established. There was a formal arrangement in place under which ActewAGL was responsible for the operation and maintenance of the water and sewerage network. This included the provision of associated customer and corporate services. That arrangement had an expiry date of 2023.

In June 2012 ACTEW Corporation signed two service agreements with ActewAGL, which effectively reset the arrangements for providing utility services.

John Knox, Managing Director, said “The 2012 agreements represented a continuation of existing arrangements that were established in 2000 with ActewAGL. They ensured minimal interruption to customers and staff and reliable water and sewerage services to the community.”

“Efficiency is always at the forefront of our minds. The community can have confidence that Icon Water’s operating expenses are subject to independent review by the economic regulator at least every five years.”

The service agreements were developed with extensive legal advice. The agreements are commercial arrangements between Icon Water and ActewAGL which contain commercially sensitive information. As such, Icon Water is not able to make the documents publically available.

“To confirm, no ACTEW Corporation employee received a performance bonus or incentive for arranging or approving the agreements.”

“Icon Water is not eligible to use the ACT Government’s shared services. Icon Water is not a government agency or directorate. Icon Water is an unlisted public company which operates under the Territory-owned Corporations ACT 1990 and subject to the Corporations Act 2001.”

“The ACT Government’s shared services would not be able to provide the unique services that Icon Water requires, such as meter reading, 24 hours faults and emergency call centre and economic regulatory advice to name a few.”

For more information about Icon Water’s business structure go to iconwater.com.au/whoweare

Icon Water does not set water and sewerage prices. The Independent Competition and Regulatory Commission (ICRC) has set affordable 2017–18 water and sewerage prices. From 1 July 2017 water and sewerage prices will be adjusted by changes to the Consumer Price Index (CPI) and Government charges.

“Water and sewerage prices reflect the costs associated with sustaining and renewing our critical assets, including dams and pipes, so we can continue to meet the needs of our customers.”

“For an average household that uses 200 kilolitres of water per year, the 2017–18 water and sewerage pricing would mean a 2.15% increase to a bill, which is roughly $25 over the year.”

“The service agreements with ActewAGL have no direct impact on 2017-18 water and sewerage price increase” Mr Knox said.

For more information about water and sewerage pricing for 2017–18 go to iconwater.com.au/pricing