INDEPENDENT COMPETITION AND REGULATORY COMMISSION
Objectives
The Independent Competition and Regulatory Commission (the Commission) has responsibilities for a broad range of regulatory and utility administrative issues under the Independent Competition and Regulatory Commission Act 1997 (ICRC Act), the Utilities Act 2000 (Utilities Act) and the Electricity (Greenhouse Gas Emissions) Act 2004.
Section 7 of the ICRC Act defines the Commission’s objectives as:
•	promoting effective competition in the interests of consumers;
•	facilitating an appropriate balance between efficiency and environmental and social considerations; and
•	ensuring non-discriminatory access to monopoly and near-monopoly infrastructure.
Under the ICRC Act, the Commission is the complaints body for Competitive Neutrality Complaints, a role defined in the National Competition Policy, and advises the Government on ‘government regulated’ activities. 
Section 3 of the Utilities Act defines the Commission’s objectives as:
•	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.
2007‑08 Priorities
The strategic and operational issues to be pursued in 2007‑08 include:
•	overseeing the pricing arrangements for retail electricity;
•	consulting widely on issues involved in, and leading to, the determination of prices for water and wastewater services for the period commencing 1 July 2008;
•	determining electricity sector benchmarks for, and reporting on compliance with, the Greenhouse Gas Abatement Scheme in the ACT; and
•	reporting on utility compliance and performance under the Utilities Act.

Estimated Employment Level 
	2006-07
Est.  Outcome	2007-08
Budget	
Staffing (FTE)	3	6	

Independent Competition and Regulatory Commission	
Operating Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
1,623		Taxes Fees and Fines	1,623	1,090	-33	1,107	1,124	1,099		
804		User Charges - ACT Government	810	839	4	860	887	893		
14		Interest	14	46	229	47	47	47		
2,441		Total Revenue	2,447	1,975	-19	2,014	2,058	2,039		
		Gains								
0		Total Gains	0	0	-	0	0	0		
2,441		Total Income	2,447	1,975	-19	2,014	2,058	2,039		
		Expenses								
709		Employee Expenses	723	742	3	761	772	773		
145		Superannuation Expenses	146	151	3	155	157	157		
1,591		Supplies and Services	1,591	1,054	-34	1,075	1,092	1,072		
13		Depreciation and Amortisation	13	13	-	13	13	13		
2,458		Total Ordinary Expenses	2,473	1,960	-21	2,004	2,034	2,015		
-17		Operating Result	-26	15	158	10	24	24		

Independent Competition and Regulatory Commission	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
863		Cash and Cash Equivalents	763	796	4	830	874	918		
21		Receivables	227	227	-	227	227	227		
884		Total Current Assets	990	1,023	3	1,057	1,101	1,145		
		Non Current Assets								
52		Property, Plant and Equipment	52	39	-25	26	13	0		
52		Total Non Current Assets	52	39	-25	26	13	0		
936		TOTAL ASSETS	1,042	1,062	2	1,083	1,114	1,145		
		Current Liabilities								
119		Payables	382	374	-2	373	373	373		
71		Employee Benefits	233	239	3	244	245	245		
0		Income Tax Payable	2	2	-	2	2	2		
190		Total Current Liabilities	617	615	..	619	620	620		
		Non Current Liabilities								
188		Employee Benefits	6	13	117	20	26	33		
188		Total Non Current Liabilities	6	13	117	20	26	33		
378		TOTAL LIABILITIES	623	628	1	639	646	653		
558		NET ASSETS	419	434	4	444	468	492		
		REPRESENTED BY FUNDS EMPLOYED								
558		Accumulated Funds	419	434	4	444	468	492		
558		TOTAL FUNDS EMPLOYED	419	434	4	444	468	492		

Independent Competition and Regulatory Commission	
Cash Flow Statement	
  2006-07			  2006-07	   2007-08		  2008-09	  2009-10	  2010-11		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
1,623		Taxes, Fees and Fines	1,623	1,090	-33	1,107	1,124	1,099		
804		User Charges	810	839	4	860	887	893		
14		Interest Received	14	46	229	47	47	47		
81		Other Revenue	81	83	2	83	86	86		
2,522		Operating Receipts	2,528	2,058	-19	2,097	2,144	2,125		
		Payments								
848		Related to Employees	854	880	3	905	922	923		
1,584		Related to Supplies and Services	1,584	1,047	-34	1,060	1,077	1,057		
96		Other	96	98	2	98	101	101		
2,528		Operating Payments	2,534	2,025	-20	2,063	2,100	2,081		
-6		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	-6	33	650	34	44	44		
-6		NET INCREASE/(DECREASE) IN CASH HELD	-6	33	650	34	44	44		
869		CASH AT BEGINNING OF REPORTING PERIOD	769	763	-1	796	830	874		
863		CASH AT THE END OF THE REPORTING PERIOD	763	796	4	830	874	918		

Independent Competition and Regulatory Commission	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/07			as at 30/6/07	as at 30/6/08	   Var	as at 30/6/09	as at 30/6/10	as at 30/6/11		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
575		Opening Balance	445	419	-6	434	444	468		
		Accumulated Funds								
-17		Operating Result for the Period	-26	15	158	10	24	24		
		Reserves								
-17		Total Income And Expense For The Period	-26	15	158	10	24	24		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
558		Closing Balance	419	434	4	444	468	492		
Notes to the financial statements
Significant variations are as follows:
Operating Statement
•	taxes, fees and fines:  the decrease of $0.533 million in the 2007‑08 Budget from the 2006‑07 estimated outcome is due to the decrease in anticipated utility licence fee revenue as responsibilities for electricity and gas network regulation transfers to the national energy regulatory body commencing in September 2007.
•	interest:  the increase of $0.032 million in the 2007‑08 Budget estimate from the 2006‑07 estimated outcome is mainly attributable to larger than expected cash reserves on hand during the year, due to the bringing forward of invoicing of debtors. 
•	supplies and services expenses:  the decrease of $0.537 million in the 2007‑08 Budget estimate from the 2006‑07 estimated outcome is due to lower levels of activity in utility licence monitoring and compliance for energy services, as responsibilities for electricity and gas network regulation transfer to the national energy regulatory body commencing in September 2007.
Balance Sheet
•	receivables:  the increase of $0.206 million in the 2006‑07 estimated outcome from the original budget is largely due to the increase in cost recoveries in relation to the water and wastewater price review.
•	payables:  the increase of $0.263 million in the 2006‑07 estimated outcome from the original budget is largely due to the increased cost of external consultants engaged in the water and wastewater price review.
•	current employee benefits:  the increase of $0.162 million in the 2006‑07 estimated outcome from the original budget largely relates to the ACT Accounting Policy requirement to classify all annual leave and unconditional long service leave as current employee benefits.  The change in policy is attributable to advice received regarding the interpretation of the Australian Accounting Standards.
•	non current employee benefits:  the decrease of $0.182 million in the 2006‑07 estimated outcome from the original budget relates to the ACT Accounting Policy requirement to classify all annual leave and unconditional long service leave as current employee benefits.  The change in policy is attributable to advice received regarding the interpretation of the Australian Accounting Standards.