Pre-Conference Workshops

Pre-Conference Workshop A: Urban Water Pricing
Monday 24 August 2009 9:30–12.30

Led by: Dr. Richard Tooth, Senior Associate, Allen Consulting Group

In response to prolonged water shortages in most of Australia's capital cities, State and Territory governments have responded to shortages by introducing restrictions, promoting water efficiency measures and upgrading infrastructure.

To many, it would seem that reform to urban water pricing should also be part of the solution. But is it practical to reform urban water pricing?

This workshop looks at the issues and implications associated with alternative urban water pricing approaches and considers how prices might change if they were more flexible.

Participants will learn about:

• Alternative pricing approaches for urban water
• Demand management and urban water pricing
• Issues of metering, billing and retailing
• Implications for households
• The role of pricing in achieving security of supply

About your workshop leader:
Dr. Richard Tooth, Senior Associate, Allen Consulting Group

Richard has specialist expertise in water policy and pricing. He has co-authored a paper on 'Bringing Competition to Urban Water Supply', recently published in Australian Journal of Agricultural and Resource Economics. He has also developed methods to model and assess the implications of market pricing in urban settings.

Pre-Conference Workshop B: Irrigation Pricing Issues
Monday 24 August 2009 1:30–4:30

Led by: Euan Morton, Principal, Synergies Economic Consulting

Key topics:

• Policy environment
• Cost concepts
• Unbundling, pricing and tariffs
• Regulation

This workshop provides an overview of the theoretical and practical dimensions to irrigation pricing.

The policy environment for irrigation is unique among the infrastructure sector. It is therefore important to appreciate these differences, and the policy rationale that underpins this difference. The evolution of policy has, over time, had more to do with implementation rather than changes to fundamental policy positions. There are also issues for the future as water becomes increasingly scarce and greater focus is placed upon the implications of current approaches for economic efficiency.

The cost drivers for irrigation supplies are fundamental to the pricing question. The linkages between cost and price - and the relevant price signals to users - is an important consideration of the workshop. The more recent reforms to re-specify irrigation services in terms of the supply chain also have pricing and tariff implications.

Finally, irrigation pricing is coming under increasing regulatory scrutiny. There are a wide range of approaches to the form of this regulation, underscoring the early stages of regulation in the sector.

About your workshop leader:
Euan Morton, Principal, Synergies Economic Consulting

Euan advises extensively in the water industry on costing, pricing, planning, contractual, economic impact and policy issues. He has advised bulk water suppliers, retailers, users, governments and regulators.

Euan was a member of an Expert Panel appointed by the Ministerial Council on Energy to review regulatory arrangements associated with the ongoing reforms to energy markets. He is also an Independent Expert under the National Electricity Rules and a member of the Trade Practices Committee of the Law Council of Australia.