INDEPENDENT COMPETITION AND REGULATORY COMMISSION
Objectives
The Independent Competition and Regulatory Commission (the Commission) has responsibilities for a range of regulatory matters under the Independent Competition and Regulatory Commission Act 1997 (ICRC Act), the Utilities Act 2000, the Electricity (Greenhouse Gas Emissions) Act 2004, and the Electricity Feed-in (Renewable Energy Premium) Act 2008.
Section 7 of the ICRC Act sets out the Commission’s objectives as:
•	promoting effective competition in the interests of consumers;
•	facilitating an appropriate balance between efficiency, environmental and social considerations; and
•	ensuring non‑discriminatory access to monopoly and near‑monopoly infrastructure.
Section 8 of the ICRC Act provides for the functions of the Commission in relation to ministerially declared regulated industries, and government‑regulated activities.  These cover matters such as pricing regulation, access arrangements, utilities regulation and competitive neutrality complaints.
The Utilities Act 2000 provides for the regulation of electricity, natural gas, water and sewerage utility services.  In discharging its responsibilities under this legislation, the Commission’s objectives centre on:
•	encouraging the provision of safe, reliable, efficient and high‑quality utility services at reasonable prices;
•	minimising the potential for misuse of monopoly power in the provision of utility services and promoting competition in the provision of utility services;
•	encouraging long‑term investment, growth and employment in utility services; and
•	protecting the interests of consumers.
The Electricity (Greenhouse Gas Emissions) Act 2004 establishes the ACT’s Greenhouse Gas Abatement Scheme, the purpose of which is to reduce greenhouse gas emissions associated with the production and use of electricity, and to encourage participation in activities to offset the production of greenhouse gas emissions.  The Commission is the scheme regulator.
The Electricity Feed‑in (Renewable Energy Premium) Act 2008 establishes a scheme for feed‑in from renewable energy generators to the electricity network.  The Act provides for the provision of advice by the Commission to the Minister for Energy to assist in the determination of the premium rate for electricity fed into the network.  The Commission is also responsible for overseeing compliance with the scheme through the licence conditions of electricity supply and distribution utilities.
2010‑11 Priorities
The strategic and operational issues to be pursued in 2010‑11 include:
•	overseeing pricing arrangements for water and wastewater services under the five‑year price path commenced from 1 July 2008;
•	overseeing pricing arrangements for retail electricity for franchise customers from 1 July 2010;
•	providing advice to the Minister for Energy on the determination of the premium rate under the Electricity Feed‑in (Renewable Energy Premium) Act 2008 for electricity fed into the network;
•	working cooperatively with the Australian Energy Market Commission on the review commenced in January 2010 on the effectiveness of retail competition in the ACT electricity retail market;
•	overseeing the utilities regulatory regime established under the Utilities Act 2000, including licensing, compliance monitoring and reporting on utility compliance and performance;
•	responding to the ACT Government’s requirements for advice on competition policy matters;
•	overseeing the regulation of the Greenhouse Gas Abatement Scheme established under the Electricity (Greenhouse Gas Emissions) Act 2004 including monitoring and reporting on compliance, and assisting with the orderly transition of the Scheme in line with changes to the co‑administered NSW Scheme and the outcome of any review of the ACT Scheme and future energy efficiency initiatives; 
•	working cooperatively with the ACT Department of the Environment, Climate Change, Energy and Water to develop the Commission’s future advice and reporting role in relation to climate change policies and programs and performance in achieving greenhouse gas reductions; and
•	working cooperatively with the national regulatory body, the Australian Energy Regulator, and relevant ACT Government policy agencies to put in place orderly arrangements for the future transfer of regulatory responsibilities in the energy sector as agreed under the Council of Australian Governments’ Australian Energy Market Agreement.
Estimated Employment Level
2008‑09
Actual Outcome		2009-10
Budget
	2009-10
Est. Outcome	2010-11
Budget
	
6	Staffing (FTE) 	5	5	61	
Note:
1. The increase of one FTE in 2010-11 is undertaken through revenue and internal cost reallocation.
Changes to Appropriation
Changes to Appropriation - Departmental						
 	2009-10	2010-11	2011-12	2012-13	2013-14	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2009-10 Budget	  485	  497	  511	  522	  522	
						
2010-11 Budget Technical Adjustment						
Revised Indexation Parameters	- 	- 	- 	- 	  11	
						
2010-11 Budget	  485	  497	  511	  522	  533	

Independent Competition and Regulatory Commission
Operating Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
485		Government Payment for Outputs	485	497	2	511	522	533		
531		Taxes Fees and Fines	531	547	3	563	585	608		
873		User Charges - ACT Government	874	883	1	913	943	973		
47		Interest	47	27	-43	27	27	27		
1,936		Total Revenue	1,937	1,954	1	2,014	2,077	2,141		
		Gains								
0		Total Gains	0	0	-	0	0	0		
1,936		Total Income	1,937	1,954	1	2,014	2,077	2,141		
		Expenses								
522		Employee Expenses	525	582	11	593	601	609		
78		Superannuation Expenses	78	79	1	82	83	84		
1,286		Supplies and Services	1,286	1,245	-3	1,296	1,357	1,412		
13		Depreciation and Amortisation	13	13	-	0	0	0		
14		Other Expenses	14	14	-	14	14	14		
1,913		Total Ordinary Expenses	1,916	1,933	1	1,985	2,055	2,119		
23		Operating Result	21	21	-	29	22	22		
23		Total Comprehensive Income	21	21	-	29	22	22		

Independent Competition and Regulatory Commission
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,639		Cash and Cash Equivalents	1,810	1,852	2	1,888	1,917	1,946		
659		Receivables	34	34	-	34	34	34		
2,298		Total Current Assets	1,844	1,886	2	1,922	1,951	1,980		
		Non Current Assets								
13		Property, Plant and Equipment	13	0	-100	0	0	0		
13		Total Non Current Assets	13	0	-100	0	0	0		
2,311		TOTAL ASSETS	1,857	1,886	2	1,922	1,951	1,980		
		Current Liabilities								
512		Payables	408	408	-	408	408	408		
76		Employee Benefits	144	145	1	145	145	145		
588		Total Current Liabilities	552	553	..	553	553	553		
		Non Current Liabilities								
74		Employee Benefits	13	20	54	27	34	41		
74		Total Non Current Liabilities	13	20	54	27	34	41		
662		TOTAL LIABILITIES	565	573	1	580	587	594		
1,649		NET ASSETS	1,292	1,313	2	1,342	1,364	1,386		
		REPRESENTED BY FUNDS EMPLOYED								
1,649		Accumulated Funds	1,292	1,313	2	1,342	1,364	1,386		
1,649		TOTAL FUNDS EMPLOYED	1,292	1,313	2	1,342	1,364	1,386		

Independent Competition and Regulatory Commission
Cash Flow Statement
  2009-10			  2009-10	   2010-11		  2011-12	    2012-13	  2013-14		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
485		Cash from Government for Outputs	485	497	2	511	522	533		
531		Taxes, Fees and Fines	531	547	3	563	585	608		
873		User Charges	874	883	1	913	943	973		
47		Interest Received	47	27	-43	27	27	27		
86		Other Revenue	86	86	-	86	86	86		
2,022		Operating Receipts	2,023	2,040	1	2,100	2,163	2,227		
		Payments								
515		Related to Employees	516	573	11	586	594	602		
78		Related to Superannuation	78	80	3	82	83	84		
1,285		Related to Supplies and Services	1,285	1,244	-3	1,295	1,356	1,411		
101		Other	101	101	-	101	101	101		
1,979		Operating Payments	1,980	1,998	1	2,064	2,134	2,198		
43		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	43	42	-2	36	29	29		
43		NET INCREASE/ (DECREASE) IN CASH HELD	43	42	-2	36	29	29		
1,596		CASH AT BEGINNING OF REPORTING PERIOD	1,767	1,810	2	1,852	1,888	1,917		
1,639		CASH AT THE END OF THE REPORTING PERIOD	1,810	1,852	2	1,888	1,917	1,946		

Independent Competition and Regulatory Commission
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/10			as at 30/6/10	as at 30/6/11	   Var	as at 30/6/12	as at 30/6/13	as at 30/6/14		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
1,626		Opening Accumulated Funds	1,271	1,292	2	1,313	1,342	1,364		
1,626		Balance at the Start of the Reporting Period	1,271	1,292	2	1,313	1,342	1,364		
		Comprehensive Income								
23		Operating Result for the Period	21	21	-	29	22	22		
23		Total Comprehensive Income	21	21	-	29	22	22		
0		Total Movement in Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
		Closing Equity								
1,649		Closing Accumulated Funds	1,292	1,313	2	1,342	1,364	1,386		
1,649		Balance at the End of the Reporting Period	1,292	1,313	2	1,342	1,364	1,386		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	interest:  the decrease of $0.020 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to timing of cash reserves held in accounts expected to be reduced compared to 2009‑10.
•	employee expenses:  the increase of $0.057 million in the 2010‑11 Budget from the 2009‑10 estimated outcome is due to anticipated wage increases and the increase from five to six staffing positions necessary to meet operational requirements.
Balance Sheet
•	cash and cash equivalents:  the increase of $0.171 million in the 2009‑10 estimated outcome from the original budget reflects the flow‑on effect of the 2008‑09 audited outcome.
•	receivables:  decrease of $0.625 million in the 2009‑10 estimated outcome from the original budget is due to a downwards revision to the level of anticipated receivables outstanding at the end of the year reflecting the 2008‑09 audited outcome result.
•	payables current:  the decrease of $0.104 million in the 2009‑10 estimated outcome from the original budget is due to lower than expected amounts payable at year end.
•	employee benefits current:  the increase of $0.068 million in the 2009‑10 estimated outcome from the original budget is due mainly to leave entitlements previously classified as non current, expected to be payable during the next 12 months.
•	employee benefits non current:  the decrease of $0.061 million in the 2009‑10 estimated outcome from the original budget is due to reclassification of leave entitlements payable to current liabilities.
Cash Flow Statement
Variances in the statement are explained in the notes above.
Statement of Changes in Equity
Variances in the statement are explained in the notes above.