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) and the Utilities Act 2000 (Utilities Act).
Section 7 of the ICRC Act sets out the Commission’s objectives, which are to:
•	promote effective competition in the interests of consumers;
•	facilitate an appropriate balance between efficiency and environmental and social considerations; and
•	ensure non-discriminatory access to monopoly and near-monopoly infrastructure.

The Commission is the complaints body for Competitive Neutrality Complaints, a specific role embedded in the National Competition Policy obligations undertaken by the Territory, and advises the Government on government regulated activities. 
Section 3 of the Utilities Act defines the Commission’s objectives, as follows:
•	to encourage the provision of safe, reliable, efficient and high quality utility services at reasonable prices;
•	to minimise the potential for misuse of monopoly power in the provision of utility services and promote competition in the provision of utility services;
•	to encourage long-term investment, growth and employment in utility services; and
•	to protect the interests of consumers.
2005‑06 Highlights
The strategic and operational issues to be pursued in 2005‑06 include:
•	regulating prices for utilities, including resetting regulated fares for transport utilities (rebalancing taxi services in accordance with the existing price direction and determining a new direction for ACTION bus fares);
•	investigating incentive mechanisms for energy and water utilities and providing advice on water pricing and regulation;
•	initiating the compliance reporting process for the Greenhouse Gas Abatement Scheme in the ACT;
•	continuing to develop the quality and usefulness of compliance reporting for energy and water utility services; and
•	developing appropriate regulatory arrangements for greenfields electricity network infrastructure.

Independent Competition and Regulatory Commission	
Operating Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
1  025		Taxes Fees and Fines	1  025	1  086	6	1  112	1  139	1  166		
463		User Charges - Non ACT Government	463	473	2	485	497	509		
869		User Charges - ACT Government	869	885	2	911	932	939		
14		Interest	14	14	-	14	46	47		
2  371		Total Revenue	2  371	2  458	4	2  522	2  614	2  661		
		Gains								
0		Total Gains	0	0	-	0	0	0		
2  371		Total Income	2  371	2  458	4	2  522	2  614	2  661		
		Expenses								
713		Employee Expenses	713	768	8	780	790	800		
101		Superannuation Expenses	101	110	9	113	115	116		
1  561		Supplies and Services	1  561	1  588	2	1  633	1  674	1  716		
13		Depreciation and Amortisation	13	13	-	13	13	13		
2  388		Total Ordinary Expenses	2  388	2  479	4	2  539	2  592	2  645		
-17		Operating Result	-17	-21	-24	-17	22	16		

Independent Competition and Regulatory Commission	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
454		Cash	506	496	-2	490	523	550		
419		Receivables	719	719	-	719	719	719		
873		Total Current Assets	1  225	1  215	-1	1  209	1  242	1  269		
		Non Current Assets								
78		Property, Plant and Equipment	78	65	-17	52	39	26		
78		Total Non Current Assets	78	65	-17	52	39	26		
951		TOTAL ASSETS	1  303	1  280	-2	1  261	1  281	1  295		
		Current Liabilities								
305		Payables	368	360	-2	352	344	336		
63		Employee Benefits	90	90	-	90	90	90		
368		Total Current Liabilities	458	450	-2	442	434	426		
		Non Current Liabilities								
84		Employee Benefits	92	98	7	104	110	116		
84		Total Non Current Liabilities	92	98	7	104	110	116		
452		TOTAL LIABILITIES	550	548	..	546	544	542		
499		NET ASSETS	753	732	-3	715	737	753		
		REPRESENTED BY FUNDS EMPLOYED								
499		Accumulated Funds	753	732	-3	715	737	753		
499		TOTAL FUNDS EMPLOYED	753	732	-3	715	737	753		

Independent Competition and Regulatory Commission	
Cash Flow Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
1  025		Taxes, Fees and Fines	1  025	1  086	6	1  112	1  139	1  166		
1  330		User Charges	1  332	1  358	2	1  396	1  429	1  448		
14		Interest Received	14	14	-	14	46	47		
83		Other Revenue	83	83	-	85	87	87		
2  452		Operating Receipts	2  454	2  541	4	2  607	2  701	2  748		
		Payments								
808		Related to Employees	808	872	8	887	899	910		
1  552		Related to Supplies and Services	1  554	1  581	2	1  626	1  667	1  709		
98		Other	98	98	-	100	102	102		
2  458		Operating Payments	2  460	2  551	4	2  613	2  668	2  721		
-6		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	-6	-10	-67	-6	33	27		
-6		NET INCREASE/(DECREASE) IN CASH HELD	-6	-10	-67	-6	33	27		
460		CASH AT BEGINNING OF REPORTING PERIOD	512	506	-1	496	490	523		
454		CASH AT THE END OF THE REPORTING PERIOD	506	496	-2	490	523	550		

Independent Competition and Regulatory Commission	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
516		Opening Balance	770	753	-2	732	715	737		
		Accumulated Funds								
-17		Operating Result for the Period	-17	-21	-24	-17	22	16		
		Reserves								
-17		Total Income And Expense For The Period	-17	-21	-24	-17	22	16		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
499		Closing Balance	753	732	-3	715	737	753		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	taxes, fees and fines:  the increase of $0.061m in the 2005‑06 Budget from the 2004‑05 estimated outcome relates to a projected increase in cost recovery for regulatory activities.  Under the Utilities Act 2000 license fees are determined to meet the costs of operating the Commission, the Essential Services Consumer Council and the Technical Regulator annually; and
•	employee expenses and superannuation:  the increase of $0.064m in the 2005‑06 Budget from the 2004‑05 estimated outcome relates to increases in the certified agreement, and growth of the Commission to meet regulatory activity;
Balance Sheet
•	current assets:  the increase of $0.352m in the 2004‑05 estimated outcome from the original budget primarily relates to a flow on effect from the 2003‑04 audited outcome that identified that the Commission held a higher level of receivables than originally budgeted; and
•	current liabilities:  the increase of $0.090m in the 2004‑05 estimated outcome from the 2004‑05 original budget relates to a flow‑on effect from the 2003‑04 audited outcome ($0.063m), which identified a higher level of payables than originally budgeted, and increased employee entitlements associated with the certified agreement and staffing growth ($0.027m).