Assessment of Aquacell Pty Ltd's network operator's licence … · 2015-08-20 · subject to the conditions as set out in licence number 15_032. This is consistent with the application

Independent Pricing and Regulatory Tribunal

Assessment of Aquacell Pty Ltd's network operator's licence applicationPrepared under the Water Industry Competition Act 2006 (NSW)

Water — Report to the MinisterJuly 2015

Assessment of Aquacell Pty Ltd’s network operator’s licence application Prepared under the Water Industry Competition Act 2006 (NSW)

Water – Report to the Minister July 2015

© Independent Pricing and Regulatory Tribunal of New South Wales 2015

This work is copyright. The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism and review. Selected passages, tables or diagrams may be reproduced for such purposes provided acknowledgement of the source is included.

ISBN 978-1-925340-04-4 WICA61

Enquiries regarding this document should be directed to a staff member:

Erin Cini (02) 9113 7778

Maria Morahan (02) 9113 7752

Serge Detoffi (02) 9113 7724

Independent Pricing and Regulatory Tribunal of New South Wales PO Box K35, Haymarket Post Shop NSW 1240 Level 15, 2-24 Rawson Place, Sydney NSW 2000

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www.ipart.nsw.gov.au

Contents

1 Summary 1

2 Background 1

3 Consultation and submissions 2

4 Assessment of application 5

4.1 Disqualified corporation and related entity checks 6

4.2 Capacity (including technical, financial and organisational capacity) to carry out the activities 7

4.3 Capacity to carry out those activities in a manner that does not present a risk to public health 9

4.4 Appropriate arrangements with respect to insurance 11

4.5 Sufficient quantities of water supplied by the licensee obtained otherwise than from public water utility 13

4.6 Capacity to carry out those activities in a manner that does not present a significant risk of harm to the environment 14

4.7 Public interest considerations 15

4.8 Licensing principles 15

4.9 Additional matters considered 20

5 Recommendations 21

Appendices 23

A Draft licence 25

Assessment of Aquacell Pty Ltd’s network operator’s licence application IPART 1

1 Summary

We recommend that the Minister grants a network operator’s licence to Aquacell Pty Ltd (Aquacell) to construct, operate and maintain sewerage infrastructure, subject to the conditions as set out in licence number 15_032. This is consistent with the application Aquacell provided to us.

The scheme involves the collection and treatment of sewage from 42 small retail customers in a new rural residential subdivision at Kurrajong, and the subsurface irrigation of treated sewage effluent. Aquacell will be responsible for the operation and maintenance of the sewerage infrastructure. The cost of these services will be funded through quarterly levies of the members of the Tallowood Community Association, which will comprise all residents of the development. Aquacell propose to undertake all retail activities relating to the provision of sewerage services (subject to a variation of Aquacell’s existing retail licence 09_004R; this is currently under consideration and will be the subject of a separate report to the Minister).

In assessing Aquacell’s network operator’s licence application, we considered the licensing criteria set out in sections 10(3)-(4) of the Water Industry Competition Act 2006 (NSW) (WIC Act), and had regard to the licensing principles in section 7(1) of the WIC Act.

In addition to assessing the application against the licensing criteria and principles of the WIC Act, we also considered whether Aquacell’s services should be declared monopoly services and subject to price regulation. We consider that the sewerage services at the Kurrajong scheme could be considered a monopoly service. However, should the Minister declare any monopoly services at Kurrajong, we recommend that the Minster does not refer these services to IPART for a determination of pricing or a periodic review of pricing policies.

The Minister must consider, but is not bound to accept, any advice or recommendation in this report in determining the licence application. The Minister may, if circumstances so require, seek further advice from us in relation to the licence application.1

2 Background

On 6 August 2013, we received Aquacell’s application for a network operator’s licence to construct, operate and maintain sewerage infrastructure and a retail supplier’s licence to provide sewerage services under the WIC Act.2 1 WIC Act, section 10(2). 2 IPART, Aquacell licence application, at

http://www.ipart.nsw.gov.au/Home/Industries/Water/Private_Sector_Licensing_WICA/Aquacell_Pty_Ltd_-_Kurrajong, 6 August 2013.

2 IPART Assessment of Aquacell Pty Ltd’s network operator’s licence application

This report only considers Aquacell’s application for a network operator’s licence.

The proposed scheme entails collecting raw sewage from 42 dwellings in a new community title, residential subdivision at Kurrajong, on the lower eastern slopes of the Blue Mountains, treating it in an on-site sewage treatment plant (STP) and then disposing of the treated sewage effluent by sub-surface irrigation. This plant has been operating since July 2014 and servicing 19 dwellings. This part of the scheme was approved by Hawkesbury City Council under a section 68 approval of the Local Government Act 1993. At the time, a WIC Act licence was not required because the scheme was providing services entirely within its own property boundaries. The remaining dwellings within the development are being constructed on another block of land separated by a public road, and therefore the whole scheme now requires a WIC Act licence.

Many existing developments in the Kurrajong area are currently serviced by septic and sewage pump out systems. We understand that these systems quite often underperform when they are sited incorrectly, on poor soils or steep slopes, or poorly maintained. In wet weather, they can also overflow into nearby waterways. Therefore, we consider that the proposed sewerage scheme if operated correctly will result in enhanced public health and environmental outcomes for the local area.

Aquacell has entered into a 5-year service agreement with the Tallowood Community Association (TCA) to manage the operation and maintenance of the wastewater system. The operating and maintenance costs for the wastewater system will be funded through quarterly levies of TCA members comprising all lot owners in the community (development).

Aquacell has extensive experience in the design, construction and operation and maintenance of such facilities both locally and overseas. It holds two WIC Act network operator licences and a (company wide) retail supplier licence that is associated with both of the network operator licence schemes.

All scheme activities will be undertaken by Aquacell. No third parties will be named on Aquacell’s network operator licence, if it is granted by the Minister.

3 Consultation and submissions

On 10 March 2014, we provided the licence application to, and invited submissions from, the following Ministers and their relevant departments:

Minister administering the Public Health Act 2010 (NSW) (Minister for Health)

Minister administering Chapter 2 of the Water Management Act 2000 (NSW) at the time (Minister for Primary Industries)


Minister administering the Protection of the Environment Operations Act 1997 (NSW) (Minister for the Environment), and

Minister administering the Environmental Planning and Assessment Act 1979 (NSW) (Minister for Planning and Infrastructure).3

We also provided a copy of the licence application to the then Minister administering the WIC Act at the same time.4

In response, we received submissions from:

NSW Health

the Minister for Natural Resources, Lands and Water.

NSW Environment Protection Authority, and

Department of Planning and Environment.

The above submissions are available on our website. The issues raised, and how they were addressed, are described below.

NSW Health supported the application, and requested consultation during:

the detailed risk assessment

following the compliance audit, and

the development of the final sewage management plans.

NSW Health cannot be consulted before commercial production commences since the plant is already operating and supplying a sewerage service to the first 19 dwellings within the development under an existing section 68 approval. The Water Industry Competition (General) Regulation 2008 (NSW) (WIC Regulation) requires licence plans for “brownfield schemes” to be submitted within six months after the licence being granted.5 Our audit guidelines will ensure that NSW Health is appropriately consulted at this time.

For further comment regarding the protection of public health, please see section 4.8.1 of this report.

The Minister for Lands and Water had no concerns with the application. Given that water sourced by Aquacell for subsurface irrigation will not be sourced from a water source, it will be not be subject to an approval or a water access licence under the Water Management Act 2000.

This submission relates to the licensing principle for ensuring sustainability of water resources, which is further considered in section 4.8.6.

3 WIC Act, section 9(1)(b). 4 WIC Act, section 9(1)(a). 5 WIC Regulation, clause 33(3)(b).


The Environment Protection Authority (EPA) advised that Aquacell would not require an Environment Protection Licence (EPL) for the proposed wastewater treatment and disposal scheme under the Protection of the Environment Operations Act 1997 as the plant capacity will be below the EPL licensing threshold. It also advised that the EPA does not generally issue EPLs for effluent irrigation schemes where the activity can be undertaken in accordance with EPA's Environmental Guidelines: Use of Effluent by Irrigation (Department of Environment and Conservation, 2004).

This submission relates to the licensing principle for the protection of the environment, which is further considered in section 4.8.2.

The Department of Planning and Environment confirmed that Aquacell had received approval from Hawkesbury City Council for a centralised sewage treatment plant to service the proposed residential development. It also noted that under clause 106(3) of the State Environment Planning Policy (Infrastructure) 2007, a private sector sewerage reticulation system is considered development without consent on any land (other than National Park), if carried out by a person holding a WIC Act licence. However, development consent has been granted by the Council for the development under Part 4 of the Environmental Planning and Assessment Act 1979 (EP&A Act).

Sydney Water was also notified regarding the licence application. Its submission reinforced the need for Aquacell to liaise with Sydney Water in relation to emergency wastewater treatment backup provisions, and the identification of alternative wastewater disposal facilities. Aquacell has identified contingency plans for disposing of wastewater in emergency situations in the form of tankering services.6 Sydney Water also identified that there may not be sufficient quantities of water to operate safety equipment at the sewerage treatment plant. Aquacell has informed us that water supplied to the site is sufficient to operate safety equipment on site, additionally evidence of the relevant section 73 certificates issued by Sydney Water were provided. We consider that both issues were addressed and satisfactorily resolved by Aquacell7.

We also called for submissions on the application from the public.8 We advertised in the Sydney Morning Herald, Daily Telegraph and the Hawkesbury Gazette on 19 March 2014 for public submissions. We gave the public four weeks to provide a submission.

One detailed submission was received from Falson and Associates Pty Ltd (Falson). The submission mainly questioned the validity of development consents issued by Hawkesbury City Council in relation to the proposed development. The submission was reviewed by IPART and given that no appeals were lodged by Falson in the appropriate jurisdiction within the 6 Letter to IPART, Mr Colin Fisher, Aquacell, 16 July 2014. 7 Letter to IPART, Mr Colin Fisher, Aquacell, 16 July 2014. 8 WIC Act, section 9(1)(c).


permitted time frames, we have not taken this matter any further. Falson also raised some concerns regarding the environmental management of the scheme. We assessed these concerns and are satisfied that no further investigation is required (see section 4.8.2 of this report).

In addition to inviting submissions, we sought expert advice from:

Vincents Chartered Accountants to inform our financial assessment (see section 4.2.2), and

the NSW Self Insurance Corporation (SICorp) to inform our assessment of appropriate insurance arrangements (see section 4.4).

4 Assessment of application

This section of the report contains our assessment of Aquacell’s licence application and our recommendations. Our assessment considers each of the following requirements of the WIC Act:

A licence must not be granted to:

– a disqualified corporation, or

– a corporation that is a related entity of a relevant9 disqualified corporation.

A licence may not be granted unless the Minister is satisfied as to each of the following:

– that the applicant has, and will continue to have, the capacity (including technical, financial and organisational capacity) to carry out the activities that the licence (if granted) would authorise

– that the applicant has the capacity to carry out those activities in a manner that does not present a risk to public health

– that the applicant has made, and will continue to maintain, appropriate arrangements with respect to insurance

– in the case of an application for a licence to supply water, that, if such a licence is granted, sufficient quantities of the water supplied by the licensee will have been obtained otherwise than from a public water utility

– in the case of an application for a network operator’s licence, that the applicant has the capacity to carry out the activities that the licence (if granted) would authorise in a manner that does not present a significant risk of harm to the environment, and

– such other matters as the Minister considers relevant, having regard to the public interest.10

9 Where the disqualified corporation would have a direct or indirect interest in, or influence on,

the carrying out of the activities that the licence would authorise if granted. WIC Act, section 10(3)(b).

10 WIC Act , sections 10(3) and (4).


In considering whether or not a licence is to be granted, and what conditions are to be imposed on such a licence, regard is to be had to the following principles:

– the protection of public health, the environment, public safety and consumers generally

– the encouragement of competition in the supply of water and the provision of sewerage services

– the ensuring of sustainability of water resources

– the promotion of production and use of recycled water

– the promotion of policies set out in any prescribed water policy document

– the potential for adverse financial implications for small retail customers generally arising from the activities proposed to be covered by the licence, and

– the promotion of the equitable sharing among participants in the drinking water market of the costs of water industry infrastructure that significantly contributes to water security.11

4.1 Disqualified corporation and related entity checks

We consider that the applicant is neither a disqualified corporation nor a corporation that is a related entity of a relevant12 disqualified corporation.

In making this recommendation, we have considered the following information:

A statutory declaration signed by Colin Fisher, Managing Director of Aquacell, stating that:

– neither Aquacell, nor any director or person concerned in the management of Aquacell is, or would be, a disqualified corporation or a disqualified individual within the meaning of the WIC Act, and

– Aquacell is not a related entity of a disqualified corporation that would have a direct or indirect interest in, or influence on, the carrying out of activities that the licence would authorise if granted.

Results of ASIC and Dun & Bradstreet reports that we have obtained for Aquacell confirmed that this company is not disqualified nor are their directors or persons concerned in the management disqualified individuals.13

Results of our search of the WIC Act licence database,14 confirming in part the above.

11 WIC Act, section 7. 12 A related entity that would have a direct or indirect interest in, or influence on, the carrying out

of the activities that the licence authorises. WIC Act, section 10(3)(b). 13 We obtained the ASIC and Dun and Bradstreet reports on 19 May 2015. 14 There are currently no disqualified corporations or individuals on the register pursuant to the

WIC Act, sections 16(e) and 16(f).


4.2 Capacity (including technical, financial and organisational capacity) to carry out the activities

Aquacell has applied for a network operator’s licence to construct, operate and maintain sewerage infrastructure.

We assessed Aquacell’s technical, financial and organisational capacity to carry out activities to be licensed. Our assessment was based on Aquacell’s capacity at the time of making the application.

4.2.1 Technical capacity

We are satisfied that Aquacell has the technical capacity to construct, operate and maintain sewerage infrastructure.

We have reached this finding after reviewing:

the reports and plans that Aquacell prepared for the Kurrajong scheme, including a draft infrastructure operating plan and draft sewage management plan

the reports and plans that Aquacell prepared for similar projects at 1 Bligh Street in Sydney and Workplace 6 in Pyrmont, which Aquacell currently operate and maintain

the results of a previous detailed audit carried out for Aquacell’s 1 Bligh Street project

Aquacell’s preliminary risk assessment and the design documentation for the Kurrajong scheme, and

Aquacell’s previous technical experience (within Australia), which is evident from a review of the curriculum vitae of specific personnel nominated to the project in the application.

We consider that the information submitted by Aquacell demonstrates that it has the technical capacity to construct, operate and maintain sewerage infrastructure.

We recommend that Aquacell should be subject to the following standard licence conditions (see draft licence in Attachment A), in relation to technical capacity, if a licence is granted:

B1.1 The Licensee must have the technical, financial and organisational capacity to carry out the activities authorised by this Licence. If the Licensee ceases to have this capacity, it must report this to IPART immediately in accordance with the Reporting Manual.


4.2.2 Financial capacity

We are satisfied that Aquacell has the financial capacity to construct, operate and maintain sewerage infrastructure.

In making our assessment of the applicant’s financial capacity we have considered the following information:

Aquacell’s summarised profit and loss statements

Aquacell’s summarised balance sheets

Aquacell’s summarised income tax returns

Aquacell’s key financial ratios, and

Aquacell’s projected cash flows or the project.

We engaged an external financial consultant, Vincents Chartered Accountants (Vincents), to assess the financial capacity of the applicant and the viability of the scheme.

In terms of financial capacity, Vincents reported that Aquacell has a low risk of financial failure. In terms of financial viability of the project, Vincents considered the project low risk subject to additional cash flow projections beyond five years being provided.

As part of the application, cash flow projections for five years have been provided. We consider this data is sufficient for the following reasons:

the cash flow projections provided show the project is cash flow positive from the first year

the project is not a staged development and all capital expenditure costs are incurred and completed in the first year of the project, and

the capital expenditure of the project will be funded by the Developer.

Based on its assessment, Vincents considers that Aquacell does not require any special licence conditions relating to financial capacity.

We consider that the information submitted by Aquacell demonstrates that it has the financial capacity to construct, operate and maintain sewerage infrastructure.

We recommend that Aquacell should be subject to the following standard licence condition (see draft licence in Attachment A), in relation to financial capacity, if a licence is granted:



4.2.3 Organisational capacity

We are satisfied that Aquacell has the organisational capacity to construct, operate and maintain sewerage infrastructure.

Our analysis showed that Aquacell has:

Previous experience (within Australia) in the water industry, including the operation and maintenance of Aquacell’s licensed WIC Act schemes at 1 Bligh Street and Workplace 6.

Personnel nominated to the project, as demonstrated in the Curriculum Vitae of their key personnel provided to us in their application form.

Appropriate organisational structure to deliver the proposed work based on their contractual arrangements and agreements.

Appropriate organisation size and expertise to manage the proposed scale of work from their resourcing plan.

Demonstrated that business risks have been identified and managed in its risk assessment provided.

Aquacell has been operating since 1996. Its core business is the design, construction, operation and maintenance of decentralised recycled water schemes. Currently, Aquacell has more than 25 schemes operating or under construction around Australia, including WIC Act licenced schemes at 1 Bligh Street and Workplace 6. The Kurrajong scheme uses similar treatment systems and technology to existing Aquacell schemes.

We consider that the information submitted by Aquacell demonstrates that it has the organisational capacity to construct, operate and maintain sewerage infrastructure.

We recommend that Aquacell should be subject to the following standard licence condition (see draft licence in Attachment A), in relation to organisational capacity, if a licence is granted:


4.3 Capacity to carry out those activities in a manner that does not present a risk to public health

We are satisfied that Aquacell has the capacity to construct, operate and maintain sewerage infrastructure, in a manner that does not present a risk to public health.


We assessed Aquacell’s capacity to manage the following key risks to public health, posed by the construction, operation and maintenance of sewerage infrastructure:

Potential for exposure to treated effluent: Due to the treated effluent from the sewage treatment plant being disposed of by subsurface irrigation, the risks to public health are minimal. Specialist effluent management investigations have revealed that there will be no runoff from the effluent disposal area. Regardless, there is a possibility that members of the public could be exposed to poor quality effluent. To minimise the risk of such an occurrence, Aquacell has undertaken a risk analysis to identify control measures to minimise risk to public health. We are satisfied that the risks identified in the risk analysis have been adequately addressed, through the proposed implementation of control measures including:

– covers on all treatment facilities, including storage tanks

– appropriate training of operators

– education program for residents on wastewater system operation and risks

– installation of appropriate signage, and

– exclusion of public from sewage treatment and disposal areas.

Potential for cross connections: We investigated the potential for cross connections between the effluent irrigation reticulation network and the drinking water network servicing the development. However, because the effluent irrigation network is isolated from the development and installed below ground, we consider that there is little likelihood of any cross connection with the drinking water network.

Pollution of water bores: The potential for pollution of water bores used for water supplies was investigated, but there are no active bores within the separation distance from effluent irrigation areas recommended by the Office of Environment and Heritage.15 Regardless, we will require that the applicant’s final Sewage Management Plan includes a monitoring regime, to the satisfaction of NSW Health, which will have input into the development of this plan by Aquacell.

As mentioned in section 3, NSW Health supported Aquacell’s application and requested consultation during the development of the detailed risk assessment and following the compliance audit. However, NSW Health cannot be consulted before commercial production commences since the plant is already operating and supplying a sewerage service to the first 19 dwellings within the development under an existing section 68 approval.

15 NSW Department of Environment and Conservation, Environmental Guidelines: Use of Effluent by

Irrigation, 2004.


Our current practices will ensure NSW Health is consulted at various stages throughout the development and auditing of the schemes licence plans. The WIC Regulation requires licence plans for “brownfield schemes” to be submitted within six months of the licence being granted.16

We consider that the information submitted by Aquacell demonstrates that it has the capacity to construct, operate and maintain sewerage infrastructure in a manner that does not present a risk to public health.

We recommend that Aquacell should be subject to the following licence condition(s) (see draft licence in Attachment A), in relation to its capacity to protect public health, if a licence is granted:

B4.1 The Licensee must carry out the activities authorised by this Licence in compliance with any requirements of NSW Health that:

a) IPART has agreed to; and

b) are notified from time to time to the Licensee by IPART in writing.

4.4 Appropriate arrangements with respect to insurance

We are satisfied that Aquacell has made, and will continue to maintain, appropriate insurance arrangements.

In making our assessment of the applicant’s insurance arrangements, we have considered Aquacell’s:

Combined Business Liability Insurance

Public Liability, Products Liability and Professional Indemnity (Financial Loss arising from a Wrongful Act) insurance policies

Workers Compensation insurance policy

Construction Risk Material Damage, and

Risk management assessment and control plan.

We requested advice from the NSW Self Insurance Corporation (SICorp) on the appropriateness of Aquacell’s insurance arrangements, with respect to the activities to be licensed.

As part of the review, SICorp examined the applicant’s proposed scope of work, the risk assessment, insurance coverage in the areas of professional indemnity, public liability and product liability, as shown in the applicant’s insurance certificates. SICorp also reviewed the product disclosure statements for each insurance certificate, and examined the financial rating of the various underwriters providing the insurance.

16 WIC Regulation, clause 33(3)(b).


SICorp concluded that the insurances reviewed were adequate and that sufficient insurance coverage has been demonstrated, subject to an additional requirement on the applicant to maintain professional indemnity insurance during the design phase of the infrastructure and for a minimum of six years following the completion of the design phase of the infrastructure.17

Further, we intend to consult with SICorp in reviewing an Insurance Expert’s report on the proposed insurance arrangements, which is to be provided by Aquacell within six months of the licence being granted.

We received no submission regarding Aquacell’s insurance arrangements.

We consider that the information submitted Aquacell demonstrates that it has made, and will continue to maintain, appropriate insurance arrangements.

We recommend that Aquacell should be subject to the following licence conditions, in relation to its insurance arrangements, if a licence is granted:

B2 Obtaining appropriate insurance

B2.2 The Licensee must:

a) before commencing to commercially operate the Specified Water Industry Infrastructure under this Licence: i) obtain insurance that is appropriate for the size and nature of the

activities authorised under this Licence; and

ii) provide a copy of each certificate of currency of the insurance obtained to IPART; and

b) within 6 months of the date on which this Licence is granted or by a later date specified by IPART (if any), demonstrate that the insurance obtained is appropriate for the size and nature of the activities authorised under this Licence by providing a report to IPART from an Insurance Expert that: i) certifies that in the Insurance Expert’s opinion, the type and level of

the insurance obtained by the Licensee is appropriate for the size and nature of the activities authorised under the Licence; and

ii) is in the form prescribed by the Reporting Manual.

17 Email dated 25 May 2015, from SICorp to IPART.


B3 Maintaining appropriate insuranceB3.1 The Licensee must maintain insurance that is appropriate for the size and nature of the activities authorised under this Licence.

B3.2 The Licensee must provide a copy of each certificate of currency of the insurance maintained by the Licensee to IPART in accordance with the Reporting Manual.

B3.3 If there is to be a change in:

a) the insurer or underwriting panel in respect of an insurance policy held by the Licensee; or

b) the type, scope or limit on the amount of insurance held by the Licensee,

in relation to the activities authorised under this Licence, the Licensee must provide a report to IPART in accordance with the Reporting Manual.

B3.4 From time to time when requested in writing by IPART, the Licensee must provide a report to IPART, in the manner, form and time specified by IPART, from an Insurance Expert certifying that in the Insurance Expert’s opinion the type, scope or limit on the amount of the insurance held by the Licensee is appropriate for the size and nature of the activities authorised under this Licence.

[Note: The circumstances in which IPART may request a report under clause B3.4 include (but are not limited to) the following: where IPART has reason to believe that there may be a change in the type, scope or limit

on the amount of insurance held by the Licensee in relation to activities authorised under this Licence;

where there is a change in the type or extent of activities authorised under this Licence; or

where IPART or an approved auditor has reason to believe that the type, scope or limit on the amount of insurance held by the Licensee may not be appropriate for the size and nature of the activities authorised under this Licence.]

B3.5 The Licensee must maintain professional indemnity insurance during the Design Phase and for a minimum period of 6 years from the date of the completion of the Design Phase.

4.5 Sufficient quantities of water supplied by the licensee obtained otherwise than from public water utility

Not applicable to an application for a network operator’s licence for sewerage services only.


4.6 Capacity to carry out those activities in a manner that does not present a significant risk of harm to the environment

We are satisfied that Aquacell has the capacity to construct, operate and maintain sewerage infrastructure, in a manner that does not present a significant risk of harm to the environment.

We assessed Aquacell’s:

Capacity to comply with environmental regulations through their previous experience (within Australia) in preparing environmental impact assessments and implementing mitigation measures for the construction operation and maintenance of non-potable water infrastructure projects at 1 Bligh Street and Workplace 6, both of which employ technology similar to that proposed for the Kurrajong scheme.

Understanding of environmental regulatory approval requirements, as confirmed by our own assessment and advice from the Department of Planning and Environment. Development consents for the proposed subdivision have been issued by Hawkesbury City Council under Part 4 of EP&A Act contain specific environmental management conditions which the applicant will have to comply with.

Environmental management processes in relation to the activities to be licensed through their site-specific environmental risk assessment and impact assessments. These included specific operational procedures included in a specialist effluent management investigations report for the proposed sub-surface effluent irrigation field, which was submitted in support of Aquacell’s application.

As this report recommends that specific measures be implemented to ensure the successful operation and long term sustainability of the effluent irrigation field, we will issue Aquacell a Notice requiring that Aquacell undertakes effective monitoring of the effluent irrigation area. Such requirements would be consistent with monitoring requirements outlined in the EPA’s Environmental Guidelines: Use of Effluent by Irrigation (2004).

We propose that associated monitoring conditions be included in Aquacell’s’ Sewage Management Plan, which it will be required to develop (together with other licence plans) and submit to IPART within 6 months of the licence being granted. These plans will be audited by expert consultants to determine whether they are adequate for the long term operation of this scheme.


Effluent management investigations undertaken in the vicinity of the subsurface effluent irrigation area revealed that there was only one non-active drinking water bore within the separation distance from effluent irrigation areas recommended by the Office of Environment and Heritage (refer to section 4.3).18 Bore data resulting from the investigations suggests that the regional water table is extremely deep and of poor quality. Test holes excavated in the vicinity of the proposed effluent irrigation field to depths of 3 metres or rock, provided no evidence of a shallow water table. It is therefore considered that the relatively low design effluent application rate of high quality effluent would not impact on the local water table.

No submission was received from the NSW Office of Water regarding risks to groundwater or nearby waterways.

We consider that the information submitted by Aquacell demonstrates that it has the capacity to carry out the construction, operation and maintenance of sewerage infrastructure, in a manner that does not present a significant risk of harm to the environment.

We do not consider that Aquacell should be subject to any specific licence conditions in relation to its capacity to not present a significant risk of harm to the environment, if a licence is granted.

4.7 Public interest considerations

We did not identify, nor did any submissions raise, other matters with regard to the public interest in relation to Aquacell’s capacity to construct, operate and maintain sewerage infrastructure.

4.8 Licensing principles

We have had regard to each of following licensing principles in making a recommendation as to whether or not the network operator’s licence should be granted, and if so, what conditions to impose.

4.8.1 Protection of public health

We have had regard to the protection of public health through our assessment of Aquacell’s capacity to construct, maintain and operate sewerage infrastructure in a manner that does not present a risk to public health. As outlined in section 4.3 of this report, we assessed Aquacell’s capacity to manage the key risks posed to public health by the additional activities to be licensed.

18 Woodlands and Wetlands Pty Ltd, Effluent Management Investigations - Supplementary

information, November 2012.


This scheme involves the disposal of treated effluent by means of sub-surface irrigation, unlike other Aquacell’s licensed schemes which utilise the recycling of treated effluent. All public health risks associated with the operation of the sewage treatment and effluent disposal facilities have been adequately addressed in specialist reports, including an effluent management investigations report and draft Sewage Management and Infrastructure Operating Plans, and in the risk management plan submitted by Aquacell in its application.

NSW Health supported the application to grant Aquacell’s licence and did not identify any specific risks to public health.19

If the Minister approves this licence, we consider that public health will continue to be protected in relation to the activities licensed.

4.8.2 Protection of the environment

We have had regard protection of the environment through our assessment of Aquacell’s capacity to construct, maintain and operate sewerage infrastructure in a manner that does not present a significant risk of harm to the environment. As outlined in section 4.6 of this report, we assessed Aquacell’s capacity to manage the key risks posed to the environment by the activities to be licensed.

In having regard to protection of the environment, we considered the approvals obtained under the EP&A Act for the activities to be licensed. The EP&A Act is the main legislation that controls planning and development in NSW.

We understand that all of the activities to be licensed, including the treatment of sewage and the disposal of treated sewage effluent by subsurface irrigation, have obtained approval under Part 4 of the EP&A Act from Hawkesbury City Council, the consent authority (DA0014/12, DA0181/12 and DA0466/14)20.

In having regard to protection of the environment, we also considered the following information:

Aquacell’s environmental risk assessment, a statement of environmental effects and a specialist effluent management investigations report which were submitted with Aquacell’s application. The latter two documents formed part of the Part 4 development applications for the development (DA0014/12, DA0181/12 and DA0466/14)21.

Development consents granted under Part 4 of the EP&A Act for the development.

19 Letter to IPART, Dr Wayne Smith, NSW Health, 22 April 2014. 20 Hawkesbury City Council website, http://www.hawkesbury.nsw.gov.au/ 21 Hawkesbury City Council website, http://www.hawkesbury.nsw.gov.au/


Hawkesbury City Council’s approval under Section 68 of the Local Government Act, 1993, for a centralised sewerage system to treat sewage and dispose of treated sewage effluent from the Kurrajong scheme.

A submission by the NSW Environment Protection Authority (EPA) made in relation to the protection of the environment. The EPA advised that the proposed activity is not a scheduled activity under the Protection of the Environment Operations Act 1997 (POEO), and as it is not proposed that there will be any discharges to waters, the development will not require an environmental protection licence under POEO. It also reported that the EPA has not initiated any prosecutions against, or issued any penalty infringement notices to Aquacell.

A public submission by Falson and Associates Pty Ltd (see section 3) which disputed the content and recommendations in specialist wastewater management reports submitted with Aquacell’s application.22,23,24 The issues raised were investigated and it was considered that the information provided in the reports was valid. The reports were prepared by qualified consultants and are supported by requirements in both Australian Standards (On-site domestic wastewater management AS/NZS 1247:2012) and are consistent with requirements in the Department of Environment and Conservation Environmental Guidelines: Use of Effluent by Irrigation.

No submission was received from the NSW Office of Water regarding risks to groundwater or nearby waterways.

We recommend that the activities authorised by the licence (if granted) should be limited to the construction, maintenance and operation of water industry infrastructure that:

has been granted development consent under the (EP&A Act), or

is exempt development under the EP&A Act and may be carried out without development consent under section 76(3)(a) of the EP&A Act.

This provision is contained within clause A3.1 of the draft licence (Attachment A). We recommend this limitation on the activities authorised by the licence for the following reasons:

We understand the activities to be licensed include development for the purpose of a sewage treatment plant (on land zoned RU2 - Rural Landscape), and sewage reticulation system. Due to the provisions of Division 18 of the State Environmental Planning Policy (Infrastructure) 2007, such development is allowed without consent by any person licensed under the WIC Act.25

22 Envirotech Pty Ltd, On-site Wastewater Management Report, December 2009. 23 Woodlands and Wetlands Pty Ltd, Effluent Management Investigations; November 2012. 24 Woodlands and Wetlands Pty Ltd, Effluent Management Investigations - Supplementary

information; November 2012 25 State Environmental Planning Policy (Infrastructure) 2007, cl 106.


We consider that the proposed limitation on the authorised activities would remove the risk that Aquacell could carry out activities without any assessment under the EP&A Act, which we consider relevant to ensuring protection of the environment.

4.8.3 Protection of public safety

We have had regard to the protection of public safety through our assessment of Aquacell’s technical capacity to construct, operate and maintain sewerage infrastructure. As outlined in section 4.2.1 of this report, we assessed Aquacell’s capacity to manage key risks to public safety by the activities to be licenced.

Sydney Water’s submission identified a concern that water supplied to the sewage treatment plant may not be adequate to operate safety equipment at the site. Aquacell has advised us that the site is supplied with sufficient quantities of water to operate the scheme safely and operate all safety equipment onsite.26

If the Minister grants a network operator’s licence to Aquacell, we consider that public safety will be adequately protected in relation to the activities licensed.

4.8.4 Protection of consumers generally

We have had regard to the protection of consumers through our assessment of Aquacell’s technical, financial and organisational capacity to construct, operate and maintain sewerage infrastructure, as outlined in sections 4.2 of this report.

We consider that Aquacell has the technical, financial and organisational capacity and relevant specific experience to undertake the activities to be licensed in a way that will satisfactorily manage risks and afford protection to consumers. While there are no Operator of Last Resort provisions in place, and no requirement to have them, sewage can be trucked offsite for disposal in emergency situations, thereby providing continuous sewerage services to consumers.

If the Minister approves this licence variation, we consider that consumers generally will continue to be protected in relation to the activities licensed.

4.8.5 Encouragement of competition

There is currently no public water utility sewerage connection for the development. Without a WIC Act licence, options for providing sewerage services to the development would be limited. It is our understanding that the development would either require each customer to have their own private system, such as a septic tank and absorption trench, which would make the development unsustainable due to a combination of lot size, soil types and slopes

26 Letter to IPART, Mr Colin Fisher, Aquacell, 16 July 2014.


or a number of small package sewage treatment plants would need to be constructed, to service the development.

However, the introduction a single centralised sewage treatment system will enable a new entity to provide sewerage services to a discrete development, thus encouraging competition in the provision of these services.

4.8.6 Ensuring sustainability of water resources

The proposed scheme does not provide drinking water or recycled water to the development. The scheme will provide sewerage services only. The proposed scheme would provide a neural affect to sustainability of water resources as it is not increasing or reducing water usage.

It is considered that the sub-surface irrigation of effluent will not impact on the local water table or nearby waterways (see section 4.6).

4.8.7 Promotion of production and use of recycled water

The proposed scheme does not provide drinking water or recycled water to the development. The scheme will provide sewerage services only, however, it is our understanding that these services provide other beneficial service to the community (ie, improves environment and health outcomes).

4.8.8 Promotion of policies set out in any prescribed water policy document

The Metropolitan Water Plan is the only prescribed water policy document in the WIC Regulation. The Metropolitan Water Plan outlines strategies to secure greater Sydney’s water supply now and in the future.

The plan is not applicable to the scheme as the proposed scheme does not provide drinking water or recycled water to the development. The scheme will provide sewerage services only.

4.8.9 Potential for adverse financial implications for small retail customers

We understand that the cost of this scheme to residents of this development will be significantly less than a septic tank pump out system which is common in this area27. We will consider this matter further when reviewing the retail licence variation request.

27 Email to IPART, Justin Taylor, Aquacell, 5 June 2015.


4.8.10 Promotion of equitable sharing of the costs of water industry infrastructure that significantly contributes to water security

Since this is an effluent disposal system, this principle does not apply. However, the infrastructure provides the opportunity for new housing communities to be established that would otherwise not be possible due to limited options for wastewater treatment and disposal. All participants in the community development share the costs associated with the operation and maintenance of the infrastructure equally via an annual levy administered by the Tallowood Community Association.

4.9 Additional matters considered

In addition to assessing the application against the licensing criteria and principles of the WIC Act, we also considered whether the applicant’s services should be subject to price regulation, at this time.

4.9.1 Monopoly supply and price regulation

We recommend that the Minster does not declare Aquacell to be a monopoly supplier in relation to the construction, operation and maintenance of sewerage infrastructure at the Kurrajong scheme at this time.

Should the Minister declare any monopoly services at Kurrajong, we recommend that the Minister does not refer these services to IPART for a determination of pricing or a periodic review of pricing policies.

The Minister may declare a licensed retail supplier or licensed network operator to be a monopoly supplier in relation to a specified water supply or sewerage service in a specified area to a specified class of customers.28

The Minister can declare a monopoly supplier at any time. This declaration does not have to link to the grant or variation of a licence or a change in licence conditions. If the Minister declares a monopoly supplier, the Minister may then refer the monopoly services to IPART for price regulation.29

A monopoly declaration may only be made in relation to a service; if the Minister is satisfied that it is a service:

for which there are no other suppliers to provide competition in the part of the market concerned

for which there is no contestable market by potential suppliers in the short term in that part of the market, and

28 WIC Act, section 51. 29 Determination of the pricing and/or periodic review of the pricing policies. Water Industry

Competition Act 2006 (NSW), section 52(1).


in the case of a water supply service for recycled water, that connection of land to that service is required by or under some other Act.30

We have considered the market for the provision of sewerage services within the Kurrajong area (the specified area) for all classes of customer and consider that the supply of sewerage services to the customers could be considered a monopoly service. There is no public or private water utility providing reticulated sewerage services in the area, and existing developments in Kurrajong are generally serviced by septic tank pump out systems.

We note that, in its application, Aquacell has indicated that the sewerage infrastructure operating and maintenance costs will be funded through quarterly levies of the Tallowood Community Association members. An allowance of $1,600 per dwelling per annum has been allocated in the initial budget for the scheme. We consider this reasonable since the costs incurred are significantly less than costs of maintaining and pumping out septic tank systems in neighbouring areas.31

Aquacell has estimated that the cost per dwelling will reduce over time as the project becomes more developed. For this reason, should the Minister declare any monopoly services, we recommend that the Minister does not refer these monopoly services to IPART for price regulation, at this time.

5 Recommendations

We recommend that the Minister:

– grants a network operator’s licence to Aquacell Pty Ltd subject to the conditions as set out in the attached draft licence (licence number 15_032)

– does not declare Aquacell to be a monopoly supplier in relation to the construction, operation and maintenance of sewerage infrastructure at the Kurrajong scheme at this time. Should the Minister declare any monopoly services at Kurrajong, we recommend that the Minister does not refer these services to IPART for a determination of pricing or a periodic review of pricing policies.

The Minister must consider, but is not bound to accept, any advice or recommendation in this report in determining the licence application. The Minister may, if circumstances so require, seek further advice from us in relation to the licence application.32

30 WIC Act, section 51(2). 31 Email to IPART, Justin Taylor, Aquacell, 5 June 2015. 32 WIC Act, section 10(2).


The Minister is required to provide us with a notice of the decision and of the reasons for the decision on making a decision whether or not to grant the licence33. We will then make the information in the notice available to the public on our website, in accordance with the requirements of the WIC Act.34

33 WIC Act, section 10(5). 34 WIC Act, section 10(6).


Appendices



A Draft licence

NEW SOUTH WALES GOVERNMENT

WATER INDUSTRY COMPETITION ACT 2006

(NSW)

NETWORK OPERATOR’S LICENCE

Aquacell Pty Ltd

(ACN 072 487 015)

New South Wales

Water Industry Competition Act 2006 (NSW)

Grant of network operator’s licence Licence no. 15_032

I, The Hon. Niall Blair MLC, Minister for Lands and Water, under section 10 of the Water Industry Competition Act 2006 (NSW), grant a network operator’s licence to: Aquacell Pty Ltd (ACN 072 487 015) to construct, maintain and operate water industry infrastructure, subject to:

(i) the conditions imposed by the Water Industry Competition Act 2006 (NSW); (ii) the conditions imposed by clause 9(b) and set out in Parts 1 and 3 of Schedule

1 to the Water Industry Competition (General) Regulation 2008 (NSW);

(ii) the conditions imposed by the Minister in the attached Schedule A, being special Ministerially-imposed licence conditions for Aquacell Pty Ltd’s network operator’s licence; and

(iii) the conditions imposed by the Minister in the attached Schedule B, being

standard Ministerially-imposed licence conditions for all licensed network operators.

.……………………………………………

Minister for Lands and Water

Dated this day of 20

SCHEDULE A - SPECIAL MINISTERIALLY-IMPOSED LICENCE CONDITIONS FOR Aquacell Pty Ltd’S NETWORK OPERATOR'S LICENCE

This schedule sets out the conditions which the Minister imposes pursuant to section 13(1)(b) of the Act. In addition to these special Ministerially-imposed conditions, the Licensee is subject to obligations imposed by the Act, the Regulation and the standard Ministerially-imposed licence conditions set out in Schedule B. The Minister may vary the conditions in this schedule or impose new conditions, provided there is no inconsistency with the conditions imposed on the Licensee by the Act or the Regulation. A1 [Not applicable] [Not applicable] A2 [Not applicable][Not applicable] A3 Activities authorised – sewerage services A3.1 This Licence authorises the Licensee and any authorised persons specified in Table 3.1

to construct, maintain and operate the water industry infrastructure specified in Table 3.2 that has been granted development consent under the EPA Act or is exempt development under the EPA Act and may be carried out without development consent under section 76(3)(a) of the EPA Act:

a) for the authorised purposes specified in Table 3.3;

b) within the area of operations specified in Table 3.4, subject to the conditions imposed by or under the Act, the Regulation and this Licence.

Table 3.1 Authorised persons

None

Table 3.2 Water industry infrastructure

Infrastructure for the reticulation, treatment, storage, conveyance and disposal of sewage.

Table 3.3 Authorised purposes

Disposal of treated sewage effluent by subsurface irrigation.

Table 3.4 Area of operations

Lots 2 in DP 6655.

Lots 1 - 4, 6-9, 11-14 and 16 to 21 in DP270827. Lots 11 and 13 in DP1036297. Lots 101 and 102 in DP 1134543. Lot 300 in DP1184237. The part of Vincent Road adjacent to Lot 2 in DP 6655 and Lots 11 and 13 in DP 1036297 between: (a) where Vincent Road intersects with Old Bells Line of Road; and (b) where Vincent Road meets Lot 101 in DP 1134543

INTERPRETATION AND DEFINITIONS Interpretation In this Schedule A, unless the context requires otherwise:

(i) the singular includes the plural and vice versa; (ii) headings are used for convenience only and do not affect the interpretation of this

Schedule A; (iii) a reference to a document includes the document as modified from time to time and

any document replacing it; (iv) a reference to a person includes a natural person and any body or entity whether

incorporated or not; (v) a reference to a clause is to a clause in this Schedule A; (vi) a reference to a schedule is to a schedule to this Licence; (vii) a reference to a law or statute includes regulations, rules, codes and other

instruments under it, and consolidations, amendments, re-enactments or replacements of them; and

(viii) explanatory notes do not form part of this Licence, but in the case of uncertainty may be relied on for interpretation purposes.

Definitions Expressions used in this Schedule A that are defined in the Act or the Regulation have the meanings set out in the Act or the Regulation.

In this Schedule A:

Act means the Water Industry Competition Act 2006 (NSW).

EPA Act Environmental Planning and Assessment Act 1979 (NSW).

Licence means this network operator’s licence granted under section 10 of the Act.

Licensee means the person to whom this Licence is granted under section 10 of the Act.

Minister means the Minister responsible for Part 2 of the Act.

Regulation means the Water Industry Competition (General) Regulation 2008 (NSW).

SCHEDULE B - STANDARD MINISTERIALLY-IMPOSED LICENCE CONDITIONS FOR ALL LICENSED NETWORK OPERATORS UNDER THE ACT

This schedule sets out the standard conditions which the Minister imposes on the Licensee and all other licensed network operators pursuant to section 13(1)(b) of the Act. In addition to these standard Ministerially-imposed conditions, the Licensee is subject to obligations imposed by the Act, the Regulation and the special Ministerially-imposed licence conditions set out in Schedule A. The Minister may vary the conditions in this schedule or impose new conditions, provided there is no inconsistency with the conditions imposed on the Licensee by the Act or the Regulation. B1 Ongoing capacity to operate

B1.1 The Licensee must have the technical, financial and organisational capacity to carry out

the activities authorised by this Licence. If the Licensee ceases to have this capacity, it must report this to IPART immediately in accordance with the Reporting Manual.

B2 Obtaining appropriate insurance

B2.1 [Not applicable]

B2.2 The Licensee must:

a) before commencing to commercially operate the Specified Water Industry Infrastructure under this Licence:

i) obtain insurance that is appropriate for the size and nature of the activities authorised under this Licence; and

ii) provide a copy of each certificate of currency of the insurance obtained to IPART; and

b) within 6 months of the date on which this Licence is granted or by a later date specified by IPART (if any), demonstrate that the insurance obtained is appropriate for the size and nature of the activities authorised under this Licence by providing a report to IPART from an Insurance Expert that:

i) certifies that in the Insurance Expert’s opinion, the type and level of the insurance obtained by the Licensee is appropriate for the size and nature of the activities authorised under the Licence; and

ii) is in the form prescribed by the Reporting Manual.

B3 Maintaining appropriate insurance

B3.1 The Licensee must maintain insurance that is appropriate for the size and nature of the activities authorised under this Licence.

B3.2 The Licensee must provide a copy of each certificate of currency of the insurance maintained by the Licensee to IPART in accordance with the Reporting Manual.

B3.3 If there is to be a change in:

a) the insurer or underwriting panel in respect of an insurance policy held by the Licensee; or

b) the type, scope or limit on the amount of insurance held by the Licensee,

in relation to the activities authorised under this Licence, the Licensee must provide a report to IPART in accordance with the Reporting Manual.

B3.4 From time to time when requested in writing by IPART, the Licensee must provide a report to IPART, in the manner, form and time specified by IPART, from an Insurance Expert certifying that in the Insurance Expert’s opinion the type, scope or limit on the amount of the insurance held by the Licensee is appropriate for the size and nature of the activities authorised under this Licence.

[Note: The circumstances in which IPART may request a report under clause B3.4 include (but are not limited to) the following: • where IPART has reason to believe that there may be a change in the type, scope or limit on

the amount of insurance held by the Licensee in relation to activities authorised under this Licence;

• where there is a change in the type or extent of activities authorised under this Licence; or

• where IPART or an approved auditor has reason to believe that the type, scope or limit on the amount of insurance held by the Licensee may not be appropriate for the size and nature of the activities authorised under this Licence.]

B3.5 The Licensee must maintain professional indemnity insurance during the Design Phase and for a minimum period of 6 years from the date of the completion of the Design Phase.

B4 Complying with NSW Health requirements B4.1 The Licensee must carry out the activities authorised by this Licence in compliance with

any requirements of NSW Health that:

a) IPART has agreed to; and

b) are notified from time to time to the Licensee by IPART in writing. B5 Complying with Audit Guidelines from IPART

B5.1 The Licensee must comply with any Audit Guidelines issued by IPART.

B6 Reporting in accordance with the Reporting Manual B6.1 The Licensee must prepare and submit reports in accordance with the Reporting

Manual.

B7 Reporting information in relation to the Register of Licences

B7.1 Within 14 days of any change in relation to the following, the Licensee must notify

IPART, and provide IPART with details, of the change in accordance with the Reporting Manual:

a) [Not applicable] b) [Not applicable] c) [Not applicable] d) [Not applicable] e) the identity of each licensed retail supplier or public water utility that has access to

infrastructure services provided by the Specified Water Industry Infrastructure for the purpose of providing sewerage services to its customers;

f) any other sewerage infrastructure to which the Specified Water Industry Infrastructure is connected;

g) the arrangements for the disposal of waste from the Specified Water Industry Infrastructure.

B8 Monitoring

B8.1 The Licensee must undertake any monitoring that is required for the purposes of this

Licence, any Plan, the Act or the Regulation in accordance with this clause B8.

B8.2 The Licensee must keep the following records of any samples taken for monitoring

purposes specified in the Sewerage Management Plan:

a) the date on which the sample was taken;

b) the time at which the sample was collected;

c) the point or location at which the sample was taken; and

d) the chain of custody of the sample (if applicable).

B8.3 The Licensee must ensure that analyses of all samples taken for the purposes of Verification Monitoring are carried out by a laboratory accredited for the specified tests by an independent body that is acceptable to NSW Health, such as the National Association of Testing Authorities or an equivalent body.

B9 Provision of copy of Plan B9.1 Whenever the Licensee makes a significant amendment to a Plan, the Licensee must

provide a copy of the amended Plan to IPART at the same time that it provides a copy to the approved auditor engaged to prepare a report as to the adequacy of the amended Plan, as required under the Regulation.

B10 Delineating responsibilities – interconnections B10.1 If a code of conduct has not been established under reg 25 of the Regulation, the

Licensee must (by a date specified by IPART) establish a code of conduct (Licensee’s Code of Conduct) in accordance with this clause B10.

B10.2 The Licensee’s Code of Conduct must set out the respective responsibilities of:

a) the Licensee; and

b) each licensed network operator, licensed retail supplier and/or public water utility that:

(i) that supplies water or provides sewerage services by means of, or

(ii) constructs, maintains or operates,

any water industry infrastructure that is connected to the Specified Water Industry Infrastructure,

by, at a minimum, providing for:

c) who is responsible for repairing, replacing or maintaining any pipes, pumps, valves, storages or other infrastructure connecting the Specified Water Industry Infrastructure to the other water industry infrastructure;

d) [Not applicable]; e) [Not applicable]; f) who is liable in the event of failure of the Specified Water Industry Infrastructure;

g) the fees and charges payable in respect of the use of the Specified Water Industry Infrastructure; and

h) who is responsible for handling customer complaints. B10.3 [Not applicable]

B10.4 Within 6 months of the date on which this Licence is granted or by a later date specified by IPART (if any), the Licensee’s Code of Conduct must be agreed in writing between the Licensee and the other licensed network operators, licensed retail suppliers and/or public water utilities referred to in clause B10.2.

B10.5 The Licensee must not contravene the Licensee’s Code of Conduct to the extent that it

makes the Licensee responsible or liable for the matters set out in it.

B11 Notification of changes to end-use B11.1 [Not applicable]

B12 Notification of changes to Authorised Person B12.1 [Not applicable]

B13 Notification of commercial operation B13.1 [Not applicable]

i) [Not applicable] INTERPRETATION AND DEFINITIONS Interpretation In this Schedule B, unless the context requires otherwise:

(i) the singular includes the plural and vice versa; (ii) headings are used for convenience only and do not affect the interpretation of this

Schedule B; (iii) a reference to a document includes the document as modified from time to time and

any document replacing it; (iv) a reference to a “person” includes a natural person and any body or entity whether

incorporated or not; (v) a reference to a clause is to a clause in this Schedule B; (vi) a reference to a schedule is to a schedule to this Licence; (vii) a reference to a law or statute includes regulations, rules, codes and other instruments

under it, and consolidations, amendments, re-enactments or replacements of them; and

(viii) explanatory notes do not form part of this Licence, but in the case of uncertainty may be relied on for interpretation purposes.

Definitions Expressions used in this Schedule B that are defined in the Act or the Regulation have the meanings set out in the Act or the Regulation.

In this Schedule B:

Act means the Water Industry Competition Act 2006 (NSW).

Audit Guidelines means the document entitled “Audit Guideline – Water Industry Competition Act 2006” which is prepared by IPART and is available on IPART’s website at www.ipart.nsw.gov.au, and any other guidelines issued by IPART in relation to audits under the Act.

Authorised Person means the authorised persons specified in, as applicable: (i) Schedule A, clause A1, Table 1.1; (ii) Schedule A, clause A2, Table 2.1; and (iii) Schedule A, clause A3, Table 3.1.

Authorised Purposes

means the authorised purposes specified in, as applicable: (i) Schedule A, clause A1, Table 1.3; (ii) Schedule A, clause A2, Table 2.3; and (iii) Schedule A, clause A3, Table 3.3.

Design Phase Insurance Expert

means the period during which any design works are carried out in relation to the water industry infrastructure that the Licensee is authorised to construct, maintain and operate under this Licence. means an insurance broker which holds an Australian financial services licence under Part 7.6 of the Corporations Act 2001 (Cth) that authorises the broker to provide financial product advice for, and deal in, contracts of insurance within the meaning of Chapter 7 of that Act.

IPART means the Independent Pricing and Regulatory Tribunal of New South Wales established under the Independent Pricing and Regulatory Tribunal Act 1992 (NSW).

Licence means this network operator’s licence granted under section 10 of the Act.

Licensee means a person to whom this Licence is granted under section 10 of the Act.

Licensee’s Code of Conduct

has the meaning given in clause B10.1.

Minister means the Minister responsible for Part 2 of the Act.

NSW Health means the Water Unit of NSW Ministry of Health and any of the local health districts as defined by the NSW Ministry of Health.

Plan means any infrastructure operating plan, water quality plan or sewage management plan that the Licensee is required to prepare under the Regulation.

Regulation means the Water Industry Competition (General) Regulation 2008 (NSW).

http://www.ipart.nsw.gov.au/

Reporting Manual means the document entitled “Network Operator's Reporting Manual,” which is prepared by IPART and is available on IPART’s website at www.ipart.nsw.gov.au.

Specified Area of Operations

means the area of operations specified in, as applicable: (i) Schedule A, clause A1, Table 1.4; (ii) Schedule A, clause A2, Table 2.4; and (iii) Schedule A, clause A3, Table 3.4.

Specified Water Industry Infrastructure

means the water industry infrastructure specified in, as applicable: (i) Schedule A, clause A1, Table 1.2; (ii) Schedule A, clause A2, Table 2.2; and (iii) Schedule A, clause A3, Table 3.2.

Verification Monitoring

means verification monitoring as described in the document entitled “Australian Drinking Water Guidelines” or the document entitled “Australian Guidelines for Water Recycling” as the case may be.

Water Quality Plan means the water quality plan that the Licensee is required to prepare under the Regulation.

http://www.ipart.nsw.gov.au/

Documents

Assessment of Aquacell Pty Ltd's network operator's licence … · 2015-08-20 · subject to the conditions as set out in licence number 15_032. This is consistent with the application