Separate caps for separate services
ESCOSA's final determination sets present-value revenue caps of AUD 3,524 million for water retail services and AUD 1,806 million for sewerage retail services, expressed in December 2022 dollars. The amounts describe a multi-year regulatory framework. They are not one year's cash receipts or the tariff paid by an individual household.
The annual path adds a timing dimension
Published water revenue amounts for 2024/25 to 2027/28 are AUD 902 million, AUD 962 million, AUD 966 million and AUD 1,000 million in December 2022 dollars. The corresponding sewerage amounts are AUD 480 million, AUD 487 million, AUD 486 million and AUD 508 million. Those annual paths have a different basis from the discounted caps and should retain their separate identities.
Recovery and funding need to be coordinated
The caps incorporate recovery over time of AUD 1,387 million of capital expenditure, in December 2022 dollars, required by South Australian Government directions. Recovery over time is financially different from an immediately available grant. Investment payments and revenue recovery need not occur in the same year, making their timing relevant to funding discussions.
Expert Follow-Up Questions
Can a revenue cap be treated as an accounting result?
No. For FY2024/25, SA Water reported revenue from ordinary activities of AUD 1,767,652 thousand. That accounting measure and the real-price regulatory caps describe different financial boundaries rather than a direct reconciliation.
Does the determination establish household affordability?
The caps provide a recovery framework; they do not by themselves establish the bill faced by a particular household, payment collection or the recovery of each project's costs. Those questions require the relevant customer and project information.