We have regulators who make sure we charge fair prices while we can still deliver safe and reliable services.
Why we need regulators
We charge customers for water and wastewater services so we can operate and invest in infrastructure. Because we are the only provider in many areas, regulators oversee what we do and how much we can charge.
Any profit we make is regulated and paid to the NSW Government as a dividend. The government uses this money to help pay for services such as education and healthcare.
The Sydney Water Act 1994 focuses on 3 main areas:
- protecting public health
- protecting the environment
- succeeding as a business.
Who regulates our services
We have 3 main regulators: NSW Health, NSW Environment Protection Authority and IPART. Together, they oversee public health, environmental protection and pricing.
NSW Health
NSW Health helps ensure we supply safe drinking water and protect public health by setting requirements for drinking and recycled water quality, safe drinking water supply, and wastewater and wastewater treatment by-products.
NSW Health regulates us under the Public Health Act 1991.
The EPA
The NSW Environment Protection Authority (EPA) ensures we meet our broad environmental responsibilities, including ecologically sustainable development, preventing environmental degradation and minimising human health risks.
The EPA is the primary environmental regulator for NSW under the Protection of the Environment Operations Act 1997.
IPART
As customers usually cannot choose another provider for water, wastewater and stormwater services, the Independent Pricing and Regulatory Tribunal (IPART) sets price limits so you pay a fair price while we can still deliver safe and reliable services. IPART also allows us to recover certain costs, such as taxes paid to the NSW Government.
IPART regulates us because we're a monopoly service.
How we are regulated
The 2 main tools which control how Sydney Water operates, and charges customers are the Operating Licence and the Price Determination.
Operating Licence
Our Operating Licence sets the service standards we must meet. IPART reviews our Operating Licence 2024–2028 and Customer Contract about every 5 years. This gives customers, communities and stakeholders a chance to share feedback. After reviewing the feedback, IPART recommends updates to the Minister for Water, and a new Operating Licence is granted.
Price Determination
IPART sets prices to make sure they are fair and reasonable. The Operating Licence first sets the service standards we must meet. We then calculate how much it will cost to meet those standards.
IPART reviews our costs, such as running the business, and investing in infrastructure and technology. They also consult the public and customer groups before making a decision.
Prices are set every 5 years. IPART then checks each year that we only charge what was approved. The current Price Determination applies from 2025 to 2030.