DCWC supported SA Water in the regulatory pricing determination process for the 2024-2028 period. We continue to work with SA water for the 2028-2032 period.
The Regulatory Determination (RD) process for the Essential Services Commission of South Australia (ESCOSA) involves assessing the pricing and standards for essential services provided by utility companies, including SA Water (SAW) every four years. This process typically requires utility companies to submit detailed plans and financial forecasts for a specified regulatory period, which in this case was the Regulatory Determination period 2024-2028 (RD24).
In supporting SAW with their ESCOSA submission for RD24, DCWC played a crucial role by assisting in the cost estimation of all planned projects within a set timeframe. The SA Water Cost Intelligence Team developed an RD24 Estimating Strategy that outlined the approach for estimating the cost of planned projects, particularly focusing on high-risk, high-value projects exceeding $20 million.
DCWC was tasked with producing Class 2/3 cost estimates for selected high-value projects. We estimated a total of 140 projects, including notable ones like the Eyre Peninsula Desalination Plant and the Mount Bold Dam Upgrade. By collaborating closely with the Cost Intelligence Team and various planners at SA Water, DCWC established an effective process that incorporated clear, plain language questions to ensure all aspects of the project scope, including necessary temporary works, were included in the estimates.
Additionally, DCWC provided advice on constructability and project sequencing, which further enhanced the accuracy of the cost estimates. This collaborative and structured approach ensured that SA Water could present comprehensive and accurate project plans to ESCOSA, facilitating a smoother regulatory determination process. DCWC is currently continuing this work for RD28.
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