INDEPENDENT COMPETITION AND REGULATORY COMMISSION
Purpose
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 annual 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.
2011-12 Priorities
The strategic and operational issues to be pursued in 2011‑12 include:
•	overseeing pricing arrangements for water and wastewater services under the five‑year price path commenced from 1 July 2008;
•	undertaking preliminary investigations to support development of new pricing arrangements for water and wastewater services from July 2013;
•	overseeing pricing arrangements for retail electricity for franchise customers from 1 July 2011;
•	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;
•	implementing as appropriate the Government’s agreed directions for monitoring and regulation of competition in the ACT electricity retail market following the recommendations of the Australian Energy Market Commission’s review of the effectiveness of competition in the electricity retail market in the ACT;
•	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 Government’s requirements for advice on competition policy matters, and discharging the Commission’s statutory role in competitive neutrality complaints handling; 
•	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 Sustainable Development Directorate 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 transfer in 2012‑13 of regulatory responsibilities in the energy sector as agreed under the Council of Australian Governments’ Australian Energy Market Agreement.
Estimated Employment Level
2009-10
Actual Outcome		2010-11
Budget
	2010-11
Est. Outcome	2011-12
Budget
	
5	Staffing (FTE) 	6	6	6	

Changes to Appropriation
Changes to Appropriation - Controlled						
 	2010-11	2011-12	2012-13	2013-14	2014-15	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2010-11 Budget	497	511	522	533	533	
						
2011-12 Budget Policy Adjustment						
Revised Wage Parameters	 - 	2	5	5	5	
						
2011-12 Budget Technical Adjustment						
Revised Indexation Parameters	 - 	2	1	1	12	
						
2011-12 Budget	497	515	528	539	550	

Independent Competition and Regulatory Commission
Operating Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
497		Government Payment for Outputs	497	515	4	528	539	550		
547		Taxes Fees and Fines	565	569	1	597	620	644		
883		User Charges - ACT Government	474	1,181	149	943	973	1,006		
27		Interest	62	52	-16	52	52	52		
1,954		Total Revenue	1,598	2,317	45	2,120	2,184	2,252		
		Gains								
0		Total Gains	0	0	-	0	0	0		
1,954		Total Income	1,598	2,317	45	2,120	2,184	2,252		
		Expenses								
582		Employee Expenses	644	709	10	724	732	744		
79		Superannuation Expenses	108	127	18	129	131	133		
1,245		Supplies and Services	1,037	1,455	40	1,248	1,303	1,360		
13		Depreciation and Amortisation	13	0	-100	0	0	0		
14		Other Expenses	0	0	-	0	0	0		
1,933		Total Ordinary Expenses	1,802	2,291	27	2,101	2,166	2,237		
21		Operating Result	-204	26	113	19	18	15		
21		Total Comprehensive Income	-204	26	113	19	18	15		

Independent Competition and Regulatory Commission
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12	   Var	as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,852		Cash and Cash Equivalents	1,817	1,583	-13	1,610	1,635	1,657		
34		Receivables	277	277	-	277	277	277		
1,886		Total Current Assets	2,094	1,860	-11	1,887	1,912	1,934		
1,886		TOTAL ASSETS	2,094	1,860	-11	1,887	1,912	1,934		
		Current Liabilities								
408		Payables	430	430	-	430	430	430		
145		Employee Benefits	143	144	1	144	144	144		
0		Other	268	0	-100	0	0	0		
553		Total Current Liabilities	841	574	-32	574	574	574		
		Non Current Liabilities								
20		Employee Benefits	18	25	39	33	40	47		
20		Total Non Current Liabilities	18	25	39	33	40	47		
573		TOTAL LIABILITIES	859	599	-30	607	614	621		
1,313		NET ASSETS	1,235	1,261	2	1,280	1,298	1,313		
		REPRESENTED BY FUNDS EMPLOYED								
1,313		Accumulated Funds	1,235	1,261	2	1,280	1,298	1,313		
1,313		TOTAL FUNDS EMPLOYED	1,235	1,261	2	1,280	1,298	1,313		

Independent Competition and Regulatory Commission
Cash Flow Statement
  2010-11			  2010-11	   2011-12		  2012-13	    2013-14	  2014-15		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
497		Cash from Government for Outputs	497	515	4	528	539	550		
547		Taxes, Fees and Fines	565	569	1	597	620	644		
883		User Charges	731	913	25	943	973	1,006		
27		Interest Received	62	52	-16	52	52	52		
86		Other Revenue	86	86	-	86	86	86		
2,040		Operating Receipts	1,941	2,135	10	2,206	2,270	2,338		
		Payments								
573		Related to Employees	671	702	5	718	727	739		
80		Related to Superannuation	79	126	59	127	129	131		
1,244		Related to Supplies and Services	1,018	1,440	41	1,233	1,288	1,345		
101		Other	86	101	17	101	101	101		
1,998		Operating Payments	1,854	2,369	28	2,179	2,245	2,316		
42		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	87	-234	-369	27	25	22		
42		NET INCREASE/ (DECREASE) IN CASH HELD	87	-234	-369	27	25	22		
1,810		CASH AT BEGINNING OF REPORTING PERIOD	1,730	1,817	5	1,583	1,610	1,635		
1,852		CASH AT THE END OF THE REPORTING PERIOD	1,817	1,583	-13	1,610	1,635	1,657		

Independent Competition and Regulatory Commission
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/11			as at 30/6/11	as at 30/6/12		as at 30/6/13	as at 30/6/14	as at 30/6/15		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Opening Equity								
1,292		Opening Accumulated Funds	1,439	1,235	-14	1,261	1,280	1,298		
1,292		Balance at the Start of the Reporting Period	1,439	1,235	-14	1,261	1,280	1,298		
		Comprehensive Income								
21		Operating Result for the Period	-204	26	113	19	18	15		
21		Total Comprehensive Income	-204	26	113	19	18	15		
0		Total Movement In Reserves	0	0	-	0	0	0		
		Transactions Involving Owners Affecting Accumulated Funds								
		Closing Equity								
1,313		Closing Accumulated Funds	1,235	1,261	2	1,280	1,298	1,313		
1,313		Balance at the End of the Reporting Period	1,235	1,261	2	1,280	1,298	1,313		

Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	user charges -  ACT Government:
•	the decrease of $0.409 million in the 2010‑11 estimated outcome from the original budget is due to the reduction of revenue from the conduct of reviews during 2010‑11; and
•	the increase of $0.707 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is mainly due to a proposed Service Level Agreement (SLA) with the Sustainable Development Directorate for services relating to the monitoring of greenhouse gas emissions. 
•	interest:
•	the increase of $0.035 million in the 2010‑11 estimated outcome from the original budget is due to higher than budgeted interest returns on cash reserves; and
•	the decrease of $0.010 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to reduced expectations for interest returns on cash reserves.
•	employee expenses:
•	the increase of $0.062 million in the 2010‑11 estimated outcome from the original budget is due to the requirement for additional temporary staffing resources; and
•	the increase of $0.065 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to the Senior Commissioner’s and the Commissioner’s remuneration being included in employee expenses.
•	supplies and services:
•	the decrease of $0.208 million in the 2010‑11 estimated outcome from the original budget is mainly due to a decrease in the use of consultants associated with a reduced level of review activity during 2010‑11; and
•	the increase of $0.418 million in the 2011‑12 Budget from the 2010‑11 estimated outcome reflects the increased activity relating to the proposed SLA with the Sustainable Development Directorate for services relating to the monitoring of greenhouse gas emissions.
•	depreciation and amortisation:  the decrease of $0.013 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to all assets having been fully depreciated.
Balance Sheet
•	cash and cash equivalents:  the decrease of $0.234 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is mainly due to increased activity relating to the proposed SLA with the Sustainable Development Directorate for services relating to the monitoring of greenhouse gas emissions with partial funding expected to be received in 2010‑11.
•	receivables current:  the increase of $0.243 million in the 2010‑11 estimated outcome from the original budget is due to flow-on effects from the 2009‑10 audited outcome.
•	other current liabilities:  
–	the increase of $0.268 million in the 2010‑11 estimated outcome from the original budget is due to revenue received in advance; and
–	the decrease of $0.268 million in the 2011‑12 Budget from the 2010‑11 estimated outcome is due to the cessation of the one-off revenue received in advance.
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.