The department is reviewing the eligibility criteria, calculation methods and other requirements (‘dividend requirements’) that apply to dividend payments by local water utilities under the guidelines of section 4 of the regulatory and assurance framework for local water utilities.
The review will identify opportunities to improve local water utility dividend requirements to ensure they receive an appropriate return on investment, can cover their costs and provide value-for-money services to customers.
We sought sector-wide feedback on the consultation paper in December 2022. 10 written submissions were received and an online workshop was attended by stakeholders representing Local Government NSW, the Water Directorate, Office of Local Government and the program’s focus group.
The feedback received is being considered and a final report will be published on the outcomes of the review and recommended changes to section 4 of the regulatory and assurance framework. The changes are expected to be approved to apply from the 2023/24 financial year.