The territory's independent pricing regulator will delay its decision on Canberra water prices following an 11th-hour intervention by the ACT government.
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The Independent Competition and Regulatory Commission had been due to hand down its final determination on water prices on Wednesday after it recommended massive cuts to water and sewerage charges in February.
But the commission has postponed its announcement after ACT Treasurer Andrew Barr called for more time on Tuesday to discuss the effect of any price changes on the ACT budget.
In its draft determination in February, the ICRC recommended a 16.9 per cent cut to water charges and a 19 per cent reduction in sewerage fees from July.
The cuts would save the average Canberra household about $230 on their annual water bills.
Mr Barr told ABC radio on Wednesday morning the final determination on prices would still be released this financial year, but said further consultation with stakeholders was necessary after the ICRC sought government input on the final determination.
“I am seeking advice from the Treasury and I wish to meet with ACTEW as well to seek their advice prior to providing that advice to the ICRC," Mr Barr said.
“I need to better understand the rationale for changes between the draft determination from the ICRC and what they presented to me yesterday, and I think it’s appropriate I be given more than six hours to seek that advice given the technical nature of it."
In February, the government indicated it was ''broadly supportive'' of price cuts but not to the extent the commission was proposing. ACTEW argued aggressively against the reductions and called instead for a 6 per cent increase.
The government-owned water utility warned it would cease to be profitable and would have to slash jobs and spending if the ICRC's determination was adopted.
In a submission to the ICRC, the government asked for more detail on the impact of ACTEW's revenue on the territory's bottom line.
Last week's territory budget papers show ACTEW's 2013-14 budget was based on the utility's submission to the ICRC, which called for a price increase.
It warned the ICRC's determination ''could result in a direct decrease in profit'' that would hit the ACT government's budget.
ICRC CEO Ranjini Nayager said the regulator had been prepared to announce its pricing decision on Wednesday morning. But she said Mr Barr, who did not respond to requests for comment, called on Tuesday and asked the commission to delay its determination.
''Before that we were ready to go,'' she said.
Ms Nayager said the government asked for time to discuss how the proposal would affect ACTEW's returns and, in turn, the budget.
''As the shareholders, the government is entitled to present its views,'' Ms Nayager said. ''It doesn't mean we'll accept those views.
''One of the things we're quite keen on is we are independent of the government.
''They may present a submission, they may present their opinion on what their preference is but the commission is independent of government and makes decisions independent of government.''
The ICRC has until June 30 to announce its decision.
In its draft determination, the regulator also called for a restructure of ACTEW, including its separation from electricity retailer ActewAGL.
Last week, The Canberra Times revealed the jobs of senior operational managers at ACTEW had been abolished in a shake-up of the water utility's management.
with Hamish Boland-Rudder