Utilities (Water and Sewerage Capital Contribution Code) Approval 2017*
Disallowable instrument DI2017–291
made under the 
Utilities Act 2000 s58 (Approved codes) and s63 (Public access)

1	Name of instrument
This instrument is the Utilities (Water and Sewerage Capital Contribution Code) Approval 2017
2	Commencement 
This instrument commences on 1 January 2018.
3	Determination of code
The Commission has approved under section 58 of the Utilities Act 2000 the Water and Sewerage Capital Contribution Code.
4	Purpose of code
The Water and Sewerage Capital Contribution Code sets out the framework by which a utility may require a customer to contribute towards the development or augmentation of the water network or sewerage network, in connection with a development. 
5	Public access to documents
Copies of the Water and Sewerage Capital Contribution Code are available for inspection by members of the public between 9:00 am and 5:00 pm, Monday to Friday, at the Commission’s offices at Level 8, 221 London Circuit, Canberra City ACT and on the Commission’s website (www.icrc.act.gov.au). Copies of these documents can be made at the Commission’s offices. Electronic copies are available on request. No charge will apply.

Joe Dimasi
Senior Commissioner
Independent Competition and Regulatory Commission
8 December 2017
Australian Capital Territory
 
Independent Competition and Regulatory Commission
	
	Water and Sewerage Capital Contribution Code
January 2018

Contents
1.	INDUSTRY CODE
2.	APPLICATION AND PURPOSE OF THIS CODE
2.1	Application
2.2	Purpose
2.3	Transition Period
3.	DICTIONARY
4.	DATE FOR PAYMENT of Capital Contribution Charge
5.	CLASS 1 Infrastructure
6.	CLASS 2 Infrastructure
6.1	Payment of charge
7.	CLASS 3 Infrastructure
8.	OTHER CHARGES
8.1	Removals, relocations and specific requirements
8.2	Application of clause 8.1
8.3	No credit or allowance
9.	CALCULATION OF INFRASTRUCTURE CHARGES and Precincts
9.1	Calculation of Class 2 Infrastructure Charge – inside a Precinct
9.2	Calculation of Class 2 Infrastructure Charge – outside a Precinct
9.3	Updating the Precinct Charge Schedule
9.4	The Precinct Map
9.5	Updating the Precinct Map
10.	DETERMINATION of required Infrastructure
10.1	Required Infrastructure
10.2	Assessment of capacity and reliability
10.3	Ownership of assets and Infrastructure
DICTIONARY
Interpretation
SCHEDULE – CLASS 1, 2 AND 3 INFRASTRUCTURE

1.	INDUSTRY CODE
The Water and Sewerage Capital Contribution Code (Code) is an Industry Code determined by the ICRC under Part 4 of the Act.
2.	APPLICATION AND PURPOSE OF THIS CODE
2.1	Application
(a)	This Code applies to a Water Utility in relation to its Water Network and to a Sewerage Utility in relation to its Sewerage Network. 
(b)	It is a requirement under section 25(2) of the Act and the Utility’s licence that a Utility comply with an Industry Code relevant to the licensed service.
2.2	Purpose
The purpose of this Code is to outline the principles and procedures by which a Water Utility and a Sewerage Utility may require a Customer to contribute towards the development or augmentation of the Water Network or Sewerage Network, in connection with a Development. 
2.3	Transition Period
(a)	No Class 2 Infrastructure Charge is payable for a Development inside a Precinct that is undertaken by a Customer (or a Developer on behalf of a Customer) if: 
i.	the date of the contract for the acquisition by the Customer of the land on which the Development is being undertaken is before 1 January 2018; and
ii.	the application for Development Approval for the Development is lodged before 1 July 2019,
unless the Customer agrees that the Class 2 Infrastructure Charge will be payable for that Development. 
(b)	For the avoidance of any doubt, a Development for which no Class 2 infrastructure charge is payable under Clause 2.3(a) will be subject to the Utility’s infrastructure evaluation and funding arrangements in place prior to the implementation of this Code.
3.	DICTIONARY
The dictionary at the end of this Code is part of this Code.
4.	DATE FOR PAYMENT of Capital Contribution Charge
Where a Capital Contribution Charge is payable, it will become payable by the Customer at the earlier of:
(a)	the date on which the Utility’s connection fee for the Connection associated with the Development is payable; and
(b)	the date on which a Certificate of Occupancy is issued in relation to the Development. 
5.	CLASS 1 Infrastructure
A Utility will construct any Class 1 Infrastructure required at its own expense and without requiring payment of a Capital Contribution Charge under this Code, subject to any amount payable by a Customer as a Capital Contribution Charge under clause 8 of this Code. 
This clause 5 applies regardless of whether the Class 1 Infrastructure is inside a Precinct or outside a Precinct.
6.	CLASS 2 Infrastructure 
6.1	Payment of charge
Where a Customer undertakes or causes a Developer to undertake a Development the Customer must pay a Capital Contribution Charge to the relevant Utility, calculated in accordance with clause 9.1 or clause 9.2 (as applicable). 
7.	CLASS 3 Infrastructure
In connection with a Development, a Customer will (or will cause a Developer to) design and construct at the Customer’s own cost any required Class 3 Infrastructure. 
No Capital Contribution Charge is payable under this Code by a Customer in connection with the design or construction of Class 3 Infrastructure.
This clause 7 applies regardless of whether the Class 3 Infrastructure is inside a Precinct or outside a Precinct.
8.	OTHER CHARGES
8.1	Removals, relocations and specific requirements
If, in connection with a Development, a Customer requests a Utility to, or a Utility determines that it is necessary to, remove, relocate, provide protection or make changes to any part of a Utility’s existing Sewerage Network or Water Network to:
(a)	permit construction, operation, use or enjoyment of the proposed Development or to enable continued provision of Water Services or Sewerage Services; or 
(b)	reduce the risk that the Sewerage Network or Water Network may constitute an Environmental Nuisance to any person where such risk is increased due to the construction, operation, use or enjoyment of the proposed Development,
the Utility may charge, and the Customer must pay, the full Costs incurred in carrying out such works.
8.2	Application of clause 8.1
Clause 8.1 applies regardless of:
(a)	whether the works include Class 1 Infrastructure, Class 2 Infrastructure or Class 3 Infrastructure;
(b)	whether the Infrastructure is inside a Precinct or outside a Precinct;
(c)	the age or utilisation of the asset; and
(d)	any previous contribution towards the cost of installing those assets.
8.3	No credit or allowance
The Utility will not provide any payment, credit or other allowance for assets removed, relocated or changed. 
9.	CALCULATION OF INFRASTRUCTURE CHARGES and Precincts 
9.1	Calculation of Class 2 Infrastructure Charge – inside a Precinct 
(a)	The Class 2 Infrastructure Charge payable for a Development inside a Precinct is calculated in accordance with the formula:
C2IC = (net increase in EP) x C
Where:
‘C2IC’ is the Class 2 Infrastructure Charge for a Development inside a Precinct
‘net increase in EP’ is determined by the Utility in accordance with the principles in clause 9.1(b)
‘C’ is the Precinct Charge 
(b)	The Class 2 Infrastructure Charge payable under this Code for a Development inside a Precinct will be based on a determination by the Utility of the net increase in EP in accordance with the following principles:
i.	where the Development involves the disconnection of a Connection (Existing Connection) and the re-connection of either the same or a new Connection (New Connection), the net increase in EP will be calculated by taking the EP of the New Connection and deducting the EP of the Existing Connection; 
ii.	if the EP of the New Connection is equal to or less than the EP of the Existing Connection, then the net increase in EP is taken to be zero; and
iii.	the EP of the Existing Connection and the New Connection will be determined taking into account the size, scale and nature of development permitted under the Development Approval for the Development rather than the size, scale or nature of development permitted under the crown lease, Territory Plan or National Capital Plan. Subject to 9.1(b)iv, where a Development Approval has not been issued for the Existing Connection, the EP of the Existing Connection will be determined by the Utility using built form, demand data, gauge data and any other relevant material available. Where a Development Approval has not been issued for the Development, the EP of the New Connection will be determined by the Utility using the proposed plans for the Development and any other relevant material available.
iv.	If the Map has been updated and the land on which the Development is being undertaken was previously outside a Precinct but is now inside a Precinct and has not previously been developed, the EP of the Existing Connection will be determined by the Utility using the suburb estate master plan or other relevant material available.
(c)	When calculating the Class 2 Infrastructure Charge:
i.	the Precinct Charge Schedule that applies will be the version in force as at the date on which the application for the Development Approval was lodged or (if no Precinct Charge Schedule was in force at that date) the first Precinct Charge Schedule issued in relation to this Code; and
ii.	if it is more than 12 months after the date the application for the Development Approval was lodged, the Precinct Charge will be increased by an amount of 2.5% per annum, with an increase for any part year calculated on a daily pro-rata basis.
9.2	Calculation of Class 2 Infrastructure Charge – outside a Precinct
The Class 2 Infrastructure Charge payable under this Code for a Development located outside a Precinct, is an amount determined by the Utility to cover the Costs of the Class 2 Infrastructure for the Development.
Where the land on which Development may occur is not wholly within a Precinct, the Class 2 Infrastructure Charge will be determined on the basis that the entire Development is outside the Precinct.
9.3	Updating the Precinct Charge Schedule
A Utility will review, and may, subject to approval by the ICRC, update its Precinct Charge Schedule annually. 
The new Precinct Charge Schedule will apply to the calculation of the Capital Contribution Charge for any Development inside a Precinct for which the application for the Development Approval was lodged on or after the date specified in the new Precinct Charge Schedule.
9.4	The Precinct Map
The Map must; 
(a)	Be publicly available at no charge directly from the Utility;
(b)	Be of sufficient quality and resolution to enable identification of individual parcels of land; 
(c)	Contain a clearly identifiable version number and date/s of effect; and
(d)	Include a table of amendments detailing any changes made from the previous version of the Map.

9.5	Updating the Precinct Map
A Utility will review, and may, subject to approval of the ICRC, update its Map annually. 
The new Map will apply to the calculation of the Capital Contribution Charge for any Development for which the application for the Development Approval was lodged on or after the date specified in the new Map. 
10.	DETERMINATION of required Infrastructure
10.1	Required Infrastructure
Whether Infrastructure is required is a matter within the discretion of the relevant Utility unless the Utility is specifically required by law to construct Infrastructure assets of a particular type or capacity.  Infrastructure will be of a standard consistent with the Utility’s standards and applicable laws.
10.2	Assessment of capacity and reliability
The assessment of the reasonable capacity and reliability of Infrastructure is a matter within the discretion of the Utility unless the Utility is specifically required by law to construct Infrastructure assets of a particular type or capacity.
10.3	Ownership of assets and Infrastructure
The payment of any Capital Contribution Charge does not confer on the person paying that charge any ownership in, or other legal or equitable right in respect of, any asset or Infrastructure to which that charge may relate.

DICTIONARY
Definitions
(1)	“Act” means the Utilities Act 2000;
(2)	“Capital Contribution Charge” means:
a.	a Class 2 Infrastructure Charge; and
b.	any amount payable by a Customer under clause 8 of this Code; 
(3)	“Certificate of Occupancy” means a certificate of occupancy issued by the relevant authority including by the construction occupations registrar under the Building Act 2004 (ACT);
(4)	“Class 1 Infrastructure” has the meaning set out in Schedule 1;
(5)	“Class 2 Infrastructure” has the meaning set out in Schedule 1;
(6)	“Class 2 Infrastructure Charge” is determined in accordance with clause 9.1 or clause 9.2 as applicable; 
(7)	“Class 3 Infrastructure” has the meaning set out in Schedule 1; 
(8)	“Connection” means a connection or re-connection to a Sewerage Network or Water Network or replacement of a water meter (where the water meter replacement is as a consequence of the Development) and “Connected” has the corresponding meaning; 
(9)	“Costs” means the amount incurred by a relevant Utility in: 
a.	making Sewerage Services or Water Services available to parcels of land not already connected to a Sewerage Network or Water Network; 
b.	varying the capacity of a connection to a Sewerage Network or Water Network; 
c.	removing, relocating, providing protection to or making changes to a Sewerage Network or Water Network; and
d.	all necessary ancillary work,
including design, labour, materials, plant, transport, overhead and administration costs, plus a reasonable profit margin;  
(10)	“Customer” has the same meaning as in the Act;
(11)	“Developer” means a person undertaking a Development. A Developer may also be a Customer; 
(12)	“Development” means subdivision, consolidation, use, building, altering or demolishing a building or structure and Developed has a corresponding meaning; 
(13)	“Development Approval” means, in relation to a Development, an approval from the relevant authority including a development approval under the Planning and Development Act 2007 (ACT) or a works approval under the Australian Capital Territory (Planning and Land Management) Act 1988 (Cth);

(14)	“Environmental Nuisance” means an unreasonable interference with the enjoyment by the public, a section of the public or a person of a place of area, if the interference is caused or likely to be caused by:
a.	dust, fumes, noise, odour or smoke; or
b.	an unhealthy, unsightly or otherwise offensive condition because of pollution;
(15)	“EP” means ‘equivalent population’ which is determined by the Utility based on the information available at https://www.iconwater.com.au/capitalcontributions and forms part of the calculation of a Class 2 Infrastructure Charge; 
(16)	“ICRC” means the Independent Competition and Regulatory Commission established under section 5 of the Independent Competition and Regulatory Commission Act 1997 (ACT);
(17)	“Industry Code” means a code determined by the ICRC under the Act;
(18)	“Infrastructure” means any or all of Class 1 Infrastructure, Class 2 Infrastructure and Class 3 Infrastructure, as the context permits;
(19)	“Map” means the map, as updated from time to time, available from the Utility and published on their website; 
(20)	“person” includes a natural person, a firm, an unincorporated association or body corporate;
(21)	“Precinct” means the area identified as a precinct on the Map; 
(22)	“Precinct Charge” means the charge payable per EP for a Development in a Precinct;
(23)	“Precinct Charge Schedule” means the charges schedule which sets out the Precinct Charge, as updated from time to time, available at https://www.iconwater.com.au/About/Our-pricing.aspx; 
(24)	“Sewerage Network” has the same meaning and functions as defined under the Act;
(25)	“Sewerage Utility” is a person licensed under the Act to provide Sewerage Services;
(26)	"Sewerage Services" means those services as defined in the Act; 
(27)	“Territory” means the Australian Capital Territory;
(28)	“Territory Plan” means the plan prepared under section 46 of the Planning & Development Act 2007 (ACT) 
(29)	“Utility” means:
a.	the relevant Water Utility, in respect of its Water Network, Water Services and the Water Utility’s associated functions under the Act; or
b.	the relevant Sewerage Utility, in respect of its Sewerage Network, Sewerage Services and the Sewerage Utility’s associated functions under the Act; 
(30)	“Utility Service” has the same meaning as defined under the Act;
(31)	“Water Network” has the same meaning and functions as defined under the Act;
(32)	"Water Services" means those services as defined in the Act; and
(33)	"Water Utility" is a person licensed under the Act to provide Water Services. 
Interpretation
In this Code, except where the contrary intention is expressed: 
the singular includes the plural and vice versa;
another grammatical form of a defined word or expression has a corresponding meaning;
a reference to a document or instrument includes the document or instrument as novated, altered, supplemented or replaced from time to time;
a reference to a person includes a natural person, partnership, body corporate, association, governmental or local authority or agency or other entity; 
a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re‑enactments or replacements of any of them;
the meaning of general words is not limited by specific examples introduced by including, for example or similar expressions; and
headings are for ease of reference only and do not affect interpretation.

SCHEDULE – CLASS 1, 2 AND 3 INFRASTRUCTURE

(1)	“Class 1 Infrastructure” means large scale headwork assets required by a Utility in order to provide services to Customers including:  
a.	for a Water Utility, works relating to provision of the following infrastructure: 
i.	dams, weirs and associated assets;
ii.	raw water pumping stations, pipelines and associated assets (upstream of a treatment plant);
iii.	water treatment plants;
iv.	bulk supply mains that feed the first reservoir or pressure management infrastructure from the treatment plant (pump station or valve farm);
v.	any other infrastructure the Water Utility deems to be headwork assets;
b.	for a Sewerage Utility, works relating to provision of the following infrastructure:
i.	gravity sewers that are 750mm diameter or greater and associated assets (including ventilation systems, etc);
ii.	sewerage treatment plants and associated assets; 
iii.	treated effluent outfalls and associated assets; or 
iv.	any other infrastructure the Sewerage Utility deems to be headwork assets.
(2)	“Class 2 Infrastructure” means the shared assets that are not Class 1 Infrastructure or Class 3 Infrastructure and which are required by a Utility to provide services to one or more Customers in connection with one or more Developments, including:  
a.	for a Water Utility, works relating to provision of the following infrastructure: 
i.	water mains downstream of Class 2 Infrastructure and greater than 200mm diameter and associated assets 
ii.	water reservoirs and pressure management systems; 
iii.	water pumping stations and associated assets that are deployed on Class 1 Infrastructure and Class 2 Infrastructure pipe assets or feeding from Class 3 Infrastructure to a water reservoir in another pressure zone;
iv.	any other infrastructure the Water Utility deems to be shared assets; 
b.	for a Sewerage Utility, works relating to provision of the following infrastructure: 
i.	sewers that are between 300mm diameter and 750mm diameter and associated assets (including ventilation systems, etc);
ii.	sewage pumping stations and associated assets; 
iii.	emergency storage and flow attenuation tanks and associated assets; 
iv.	any other infrastructure the Sewerage Utility deems to be shared assets.
(3)	“Class 3 Infrastructure” means the reticulation assets required by a Water Utility or a Sewerage Utility to connect a Customer to water and sewerage services including: 
a.	for a Water Utility, works relating to provision of the following infrastructure: 
i.	water mains that are 200mm or less in diameter;
ii.	water pumping stations and associated assets that do not meet the Class 2 Infrastructure definition;
iii.	pressure reducing assets on the Water Utility’s Class 3 Infrastructure; 
iv.	onsite assets including water tanks and associated assets; or
v.	any other infrastructure the Water Utility deems to be reticulation assets; or
b.	for a Sewerage Utility, works relating to provision of the following infrastructure:
i.	sewers that are less than 300mm in diameter;
ii.	onsite assets including sewage storage capacity and internal sewage pumping stations; or 
iii.	any other infrastructure the Sewerage Utility deems to be reticulation assets.