Long History of Arrangements

Long history of arrangements

The current services contracts between Icon Water and ActewAGL are the most recent in a long history of arrangements for sharing the delivery of services in the context of utility services. This recognises the natural synergies that exist between the utilities.

The provision of water and electricity services in the ACT have been linked since 1988 when the ACT Electricity and Water Authority (ACTEWA) was established. The reasons given for the creation of this authority included recognition of the value of shared corporate, customer and other services in the delivery of the various utility services. In 2000, gas services also combined with water and electricity when the ActewAGL joint venture was formed.

This table outlines the changes to the owners and providers of water, electricity and gas services.

Time period	Bodies responsible for utility services	Explanation of changes to structural arrangements	Corporate and customer services
1962–1988	Water– Commonwealth public service. Electricity– ACT Electricity Authority (ACTEA).Commonwealth statutory authority under theAustralian Capital Territory Electricity Supply Act 1962(Cth). Gas– Australian Gas Light Company (AGL).	Not applicable.	Assumed to be separate for each.
1988–1995	Water and electricity– ACT Electricity and Water Authority (ACTEWA). Statutory authority under theElectricity and Water Ordinance 1988(Cth) (Commonwealth body until self–government in 1989 and then an ACT body). Gas– AGL.	Consolidation of electricity retail and distribution and the provision of water and sewerage services within the one entity, using the existing infrastructure of ACTEA.	Shared between water and electricity. Separate for gas.
1995–2000	Water and electricity– ACTEW Corporation Limited.Territory-owned corporation under theTerritory-owned Corporations Act 1990(ACT) (TOC Act). Gas– AGL.	Corporatisation of the body responsible for delivery of electricity and water services. This was part of the ACT’s commitment to the National Competition Policy to provide a strategic framework for the efficient and sustainable reform of the Australian water industry.	Shared between water and electricity. Separate for gas.
2000–2012	Water– ACTEW Corporation Limited (owner of assets) and ActewAGL (provider of operations and maintenance services and corporate and customer services). Electricity and gas– ActewAGL. Joint venture between two partnerships, ActewAGL Distribution and ActewAGL Retail. Initially, ACTEW Corporation Limited and AGL were each equal partners in both partnerships.	Creation of a multi-utility service provider to ensure ACTEW would be able to compete in an increasingly competitive electricity market and to improve price and service quality for ACT electricity and water consumers. To establish commercially viable corporate structures and to ensure that both organisations benefitted from the synergies created from being a multi utility provider of water, electricity and gas services.	Shared between water, electricity and gas.
2012-today	Water– ACTEW Corporation Limited (now named Icon Water Limited). Electricity and gas– ActewAGL.	Re-integration of the operations and maintenance of the water and sewerage assets back into Icon Water. To ensure both ownership and operations aligned with the Territory-Owned Corporation Act objectives of efficient operations, maximising sustainable returns, social responsibility and ecologically sustainable development.	Shared between water, electricity and gas.

History of corporate services provision since 2000

Since the formation of the ActewAGL joint venture in 2000, there has been a series of agreements relating to the provision of corporate and customer services between the parties. The key agreements are outlined below.

Water and Sewerage Managing Contractor Alliance Agreement

The Managing Contractor Alliance Agreement (MCAA) was established between ActewAGL and ACTEW Corporation Limited (now named Icon Water Limited) in 2000. It sets out the alliance principles by which Icon Water engaged ActewAGL to manage and operate Icon Water’s water business, including the operation and maintenance of Icon Water’s water and sewerage networks. The MCAA was entered into with the specific intention to be replaced with a longer-term, performance based outsourcing agreement once the costs and risks of the water and sewerage operations by the joint venture had been established.

Utilities Management Agreement

The Utilities Management Agreement (UMA) was the contract established between ActewAGL and Icon Water in 2004, to replace the MCAA. The UMA provided for ActewAGL to operate and maintain the water and sewerage networks owned by Icon Water. This also included the provision by ActewAGL to Icon Water of certain corporate and customer services.

The term of the UMA was aligned to the regulatory period during which price directions are set by Icon Water’s economic regulator (the Independent Competition and Regulatory Commission (ICRC)). The UMA had an expiry date of 30 June 2023. This agreement remained in place until the water and sewerage operations were internalised back into Icon Water in 2012.

Corporate Services Agreement

The Corporate Services Agreement (CSA) was entered into between ActewAGL and Icon Water in 2012 when responsibility for the operation and maintenance of the water and sewerage networks was internalised back into Icon Water. The CSA sets out the arrangements for the provision of corporate services to Icon Water. The CSA allowed for the continuation of the services provided to the water business until 2023.

Customer Services and Community Support Agreement

The Customer Services and Community Support Agreement (CSCSA) was entered into between ActewAGL and Icon Water in 2012 when responsibility for the operation and maintenance of the water and sewerage networks was internalised back into Icon Water. The CSCSA sets out the arrangements for the provision of customer and community support services to Icon Water. The CSCSA allowed for the continuation of the services provided to the water business until 2023.

Retail Customer Service Agreement and Corporate Services transition

Following expiry of the CSA in June 2023, Icon Water and ActewAGL entered into a transition period to transfer responsibilities for service provision.

Icon Water also entered into a new Retail Customer Service Agreement (RCSA) with ActewAGL which commenced on expiry of the CSCSA on 30 June 2023. The RCSA continues services related to meter reading, billing and related customer contact and accounts receivable and credit management.