Declared Price Monitored/Controlled Services

Water & Sewerage

In light of legislative changes relating to the introduction of the Independent Consumer & Competition Act 2002 in conjunction with amendments made to certain provisions of the Prices Regulation Act (Chapter 320), a review into water and sewerage rates was initiated by the Commission in March 2004. Water and sewerage services are declared services under Section 10 of the Prices Regulation Act.

At the conclusion of this review in November 2004, the Commission‘s final determinations of the water and sewerage pricing arrangements for both Eda Ranu and the PNG Waterboard were released. For a period of five years commencing 1 January 2005 and concluding 31 December 2009, both Eda Ranu and PNG Waterboard will be able to adjust their average prices for water and sewerage services by a factor determined by the formula CPI+X. In 2005, Eda Ranu and PNG Waterboard adjusted their prices by CPI+11% and CPI+7.8% respectively. The CPI used here is the movement in the adjusted CPI (that is, excluding betel nut, tobacco and beverages). Eda Ranu and PNG Waterboard will advise the Commission in advance of proposed changes that they wish to make in accordance with the formula, and the Commission will confirm the accuracy of the calculations based on the operation of the determined formula.

The Commission will retain the right to seek adjustments to proposed new tariff rates should it observe that the adjusted rates for lower volume users (the ‘lifeline blocks’) are growing at unacceptable levels, although this will not prevent the two businesses from making their full adjustment across all tariffs in accordance with the determined price path. Stevedoring & Handling charges

These services are also declared services under Section 10 of the Prices Regulation Act (Chapter 320) for price control purposes. Providers of these services are required under the Act to seek the Commission's approval before any price change. The Commission undertake the comprehensive review into the stevedoring and handling industry in 2007 with the view to continue, terminate or alter the existing form of price regulation and if changes was to be made then what form of price regulation will apply then.