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 provides for the functions of the Commission in relation to ministerially declared regulated industries.  These cover matters such as pricing regulation, access arrangements, utilities regulation, and competitive neutrality complaints.  The ICRC Act sets out 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.
The Utilities Act 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 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 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.

2009-10 Priorities
The strategic and operational issues to be pursued in 2009-10 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 2009;
•	providing advice to the Minister for Energy on the determination of the premium rate under the Electricity Feed-in (Renewable Energy Premium) Act for electricity fed into the network;
•	working cooperatively with the Australian Energy Market Commission on the review scheduled for 2010 on the effectiveness of retail competition in ACT electricity and gas retail markets, and on the wider review of the impact of carbon trading initiatives on energy markets;
•	overseeing the utilities regulatory regime established under the Utilities Act, including licensing, compliance monitoring and reporting on utility compliance and performance;
•	overseeing the regulation of the Greenhouse Gas Abatement Scheme established under the Electricity (Greenhouse Gas Emissions) Act including reporting on compliance, and assisting with the orderly transition of the Scheme in line with changes to the co-administered NSW Scheme and the introduction of the Commonwealth Carbon Pollution Reduction Scheme; and
•	working cooperatively with the national regulatory body, the Australian Energy Regulator, to put in place orderly arrangements for the 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
Budget		2008-09
Est. Outcome	2009-10
Budget	
5	Staffing (FTE) 	6	5	

Changes to Appropriation
						
Changes to Appropriation - Departmental						
 	2008-09	2009-10	2010-11	2011-12	2012-13	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	471	485	499	514	514	
						
2009-10 Budget Policy Adjustment						
Efficiency Dividend	 - 	 - 	(2)	(3)	(3)	
						
2009-10 Budget Technical Adjustment						
Revised Indexation Parameters	 - 	 - 	 - 	 - 	11	
						
2009-10 Budget	471	485	497	511	522	

Independent Competition and Regulatory Commission
Operating Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
471		Government Payment for Outputs	471	485	3	497	511	522		
516		Taxes Fees and Fines	599	531	-11	547	563	585		
844		User Charges - ACT Government	376	873	132	875	902	934		
47		Interest	67	47	-30	27	27	27		
1,878		Total Revenue	1,513	1,936	28	1,946	2,003	2,068		
		Gains								
0		Total Gains	0	0	-	0	0	0		
1,878		Total Income	1,513	1,936	28	1,946	2,003	2,068		
		Expenses								
511		Employee Expenses	580	522	-10	573	580	588		
75		Superannuation Expenses	77	78	1	79	80	81		
1,255		Supplies and Services	819	1,286	57	1,245	1,300	1,363		
13		Depreciation and Amortisation	13	13	-	13	0	0		
14		Other Expenses	14	14	-	14	14	14		
1,868		Total Ordinary Expenses	1,503	1,913	27	1,924	1,974	2,046		
10		Operating Result	10	23	130	22	29	22		

Independent Competition and Regulatory Commission
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,653		Cash and Cash Equivalents	1,596	1,639	3	1,681	1,717	1,746		
48		Receivables	659	659	-	659	659	659		
1,701		Total Current Assets	2,255	2,298	2	2,340	2,376	2,405		
		Non Current Assets								
26		Property, Plant and Equipment	26	13	-50	0	0	0		
26		Total Non Current Assets	26	13	-50	0	0	0		
1,727		TOTAL ASSETS	2,281	2,311	1	2,340	2,376	2,405		
		Current Liabilities								
572		Payables	512	512	-	512	512	512		
102		Employee Benefits	75	76	1	76	76	76		
674		Total Current Liabilities	587	588	..	588	588	588		
		Non Current Liabilities								
14		Employee Benefits	68	74	9	81	88	95		
14		Total Non Current Liabilities	68	74	9	81	88	95		
688		TOTAL LIABILITIES	655	662	1	669	676	683		
1,039		NET ASSETS	1,626	1,649	1	1,671	1,700	1,722		
		REPRESENTED BY FUNDS EMPLOYED								
1,039		Accumulated Funds	1,626	1,649	1	1,671	1,700	1,722		
1,039		TOTAL FUNDS EMPLOYED	1,626	1,649	1	1,671	1,700	1,722		

Independent Competition and Regulatory Commission
Cash Flow Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			 Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
471		Cash from Government for Outputs	471	485	3	497	511	522		
516		Taxes, Fees and Fines	599	531	-11	547	563	585		
844		User Charges	376	873	132	875	902	934		
47		Interest Received	67	47	-30	27	27	27		
83		Other Revenue	83	86	4	86	86	86		
1,961		Operating Receipts	1,596	2,022	27	2,032	2,089	2,154		
		Payments								
500		Related to Employees	569	515	-9	566	573	581		
75		Related to Superannuation	77	78	1	79	80	81		
1,254		Related to Supplies and Services	818	1,285	57	1,244	1,299	1,362		
98		Other	98	101	3	101	101	101		
1,927		Operating Payments	1,562	1,979	27	1,990	2,053	2,125		
34		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	34	43	26	42	36	29		
34		NET INCREASE/ (DECREASE) IN CASH HELD	34	43	26	42	36	29		
1,619		CASH AT BEGINNING OF REPORTING PERIOD	1,562	1,596	2	1,639	1,681	1,717		
1,653		CASH AT THE END OF THE REPORTING PERIOD	1,596	1,639	3	1,681	1,717	1,746		

Independent Competition and Regulatory Commission
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
1,029		Opening Balance	1,616	1,626	1	1,649	1,671	1,700		
		Accumulated Funds								
10		Operating Result for the Period	10	23	130	22	29	22		
		Reserves								
10		Total Income And Expense For The Period	10	23	130	22	29	22		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
1,039		Closing Balance	1,626	1,649	1	1,671	1,700	1,722		
Notes to the financial statements
Significant variations are as follows:
Operating Statement
•	taxes, fees and fines:  the increase of $0.083 million in the 2008-09 estimated outcome from the original budget and the decrease of $0.068 million in the 2009-10 Budget from the 2008-09 estimated outcome relates to the collection of licence fees in 2008-09 which were not budgeted.
•	user charges — ACT Government:
•	the decrease of $0.468 million in the 2008-09 estimated outcome from the original budget is attributable to the reduction of revenue for the conduct of reviews during 2008-09; and
•	the increase of $0.497 million in the 2009-10 Budget from the 2008-09 estimated outcome is attributable to the return to a more usual level of review activity.
•	interest:
•	the increase of $0.020 million in the 2008-09 estimated outcome from the original budget is attributable to a higher than budgeted interest returns on cash reserves; and
•	the decrease of $0.020 million in the 2009-10 Budget from the 2008-09 estimated outcome is attributable to reduced expectations for interest returns on cash reserves.
•	employee expenses:
•	the increase of $0.069 million in the 2008-09 estimated outcome from the original budget is attributable to the requirement for additional temporary staffing resources; and
•	the decrease of $0.058 million in the 2009-10 Budget from the 2008-09 estimated outcome is attributable to the return to normal staffing levels.
•	supplies and services:
•	the decrease of $0.436 million in the 2008-09 estimated outcome from the original budget is largely attributable to a decrease in the use of consultants associated with a reduced level of review activity during 2008-09; and
•	the increase of $0.467 million in the 2009-10 Budget from the 2008-09 estimated outcome reflects a return to normal levels of activity.
Balance Sheet
•	cash and cash equivalents:  the decrease of $0.057 million in the 2008-09 estimated outcome from the original budget is mainly due to the refund of unspent licence fees collected in 2007-08 for energy sector utilities.
•	receivables current:  the increase of $0.611 million in the 2008-09 estimated outcome from the original budget is attributable to a higher level of collections from debtors.
•	payables current:  the decrease of $0.060 million in 2008-09 estimated outcome from the original budget is due to the reduced use of consultants.
•	employee benefits current:  the decrease of $0.027 million in the 2008-09 estimated outcome from the original budget is due to the use of leave entitlements by employees during the financial year.
•	employee benefits non current:  the increase of $0.054 million in the 2008-09 estimated outcome from the original budget is due to the transfer of liabilities associated with employee movements and the normal accrual of leave entitlements.
Cash Flow Statement
Variances in the statement are explained in the notes above.