The 2005 QCA report on GAWB’s pricing policies
and practices endorsed GAWB’s proposed commercial framework
which is designed to achieve sustainability by balancing GAWB’s
requirement to achieve returns commensurate with its risk
profile and the "good" use and management of water. GAWB is
assessed to be a low risk business by the QCA, and therefore
entitled to relatively lower rates of return. GAWB’s imperative
is to ensure that it is mindful of the risk/return balance as
its risk profile changes through the lifecycle of its major
investments.
This endorsement underpins GAWB’s efforts to
more precisely describe the service and product that it has for
sale.Clarity around such matters is important, because it helps
to identify the parameters within which GAWB is able to act to
meet the requirements of its customers.
GAWB has two broad forms of contract, a storage
contract detailing the terms and conditions upon which GAWB will
provide agreed quantities of water and a transportation contract
detailing the terms and conditions upon which GAWB will deliver
the water through its pipeline infrastructure to the point of
supply to the customer. GAWB is seeking to transition all
customers from their existing arrangements to new agreements
that are consistent with its standard terms and conditions.
Where required through commercial negotiation the terms of the
agreements may be tailored to reflect specific customer
requirements.
