WELS Cost Recovery Implementation Statement

We asked for feedback on the 2022-23 Water Efficiency Labelling and Standards (WELS) scheme Cost Recovery Implementation Statement (CRIS). The CRIS outlines the recovery of costs under the WELS scheme. It includes:

• financial and non-financial information about the WELS scheme
• financial forecasts for 2022/23 and 3 forward years.

We value your feedback. This is what you told us.

How you had your say

We invited feedback from WELS registrants, the plumbing and white goods sectors, consumer advocates and state and territory governments.

You gave feedback through:

• an online survey
• written submissions.

Who engaged

Thirteen organisations commented on the CRIS. Participants identified as manufacturers, suppliers, retailers, consultants, a sourcing agent and a testing laboratory. All organisations were from Australia or New Zealand.

Over 200 individuals viewed the information on the CRIS Have Your Say page. Of these, 79 downloaded the draft CRIS and 13 provided comment either using the survey or by submission.

Survey

Eleven organisations responded through the survey. The majority being from manufacturers or suppliers.

Submissions

Two written submissions were received from an industry body and a manufacturer/supplier.

What you said

Views you raised on the 2022/23 WELS scheme CRIS

Seven respondents provided varied views on the 2022-23 WELS scheme CRIS. The views were that:

• industry (plumbing and fire industry) supported the draft CRIS and acknowledged the WELS scheme’s role in the broader regulatory framework
• a tiered fee structure based on the number of registered models creates inequity
• the current fee structure presents a barrier to business. This occurs as a registrant needs to assume they will sell at least one or more products, when in fact none may be sold
• registration fees paid are excessive or not recoverable.

Views you raised on the future review of WELS scheme cost recovery

Nine respondents provided views on the future review. The views were:

• the WELS scheme cost recovery does not recognise other costs associated with scheme participation. For example, costs incurred from labelling or ensuring product compliance. In determining a future cost recovery model, the total cost to industry for scheme compliance should be considered.
• consideration should be given to other cost recovery models to ease perceived inequity between small and large registrants. For example, basing the fee structure on other metrics (number of WELS products sold, or actual turn-over value of WELS products or a fee per item basis).
• consideration should be given to previous independent review recommendations about WELS scheme cost recovery.
• provide a more efficient payment process in relation to the annual renewal of product registrations. While waiting for the receipting of renewal payments, products keep their expiring status which can create uncertainty for customers.
• consideration be given to a fee structure to support longer durations of product registration.
• the WELS scheme is known as a national scheme delivering a benefit to the Australian community and consumers, but the scheme is largely funded by industry sources. Considering this funding base, industry needs opportunities and avenues to have a greater say in its operation.

What happens next

We will review your feedback and use it to finalise the draft 2022-23 WELS scheme CRIS.

After the Minister for Water approves the 2022-23 WELS scheme CRIS, we will publish it on our Water Rating web site.

We will consider your feedback about future cost recovery as part of the full review of the WELS scheme cost recovery arrangement. We will invite all respondents who commented on the future CRIS to expand on their views directly. We will continue to engage with you and the broader stakeholder community as part of this future review.