Top down efficiency review of SA water

This project provides analysis of how SA Water’s historical costs and outputs compare with water and sewerage utilities across Australia in terms of its efficiency. This comparison is expected to form one part of ESCoSA’s considerations in regards to the efficiency of future expenditure projections, in conjunction with a detailed bottom-up analysis of SA Water’s costs.

We build on work undertaken within the Essential Services Commission (ESC) of Victoria, comparing performance across urban water utilities in Australia. We consider unit costs, productivity measures and statistical efficiency measures to consider the relative performance of SA Water’s capital and operating expenditures to provide water and wastewater services to customers within Adelaide, compared to other Australian utilities. Each method has merit and provides insights. Equally, each method has limitations, and these are also highlighted.

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