2004 – Dam Safety Regulation – Pricing and Investment Implications

Ross Muir

The decision-making landscape has shifted markedly over the last 10 years with the implementation of COAG micro-economic reforms. These reforms have seen the separation of regulatory functions from commercial / service provision functions – yielding benefits to all stakeholders. However, the fragmented regulatory framework for dam owners (in Queensland at least) has resulted in potential conflict between price regulation and major dam safety decisions such as spillway upgrades.

This paper examines the scope for conflict in the two regulatory frameworks (pricing and dam safety) and the implications for dam owners, water users and potential new investors in the water infrastructure.

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