21 April 2009
PRICE REVIEW SUPPORTS WATER PROJECTS
The Essential Services Commission today released its draft determination on the Melbourne metropolitan water price review.
The review examines proposed price increase for services provided by Melbourne’s three water retailers as well as the wholesale water and sewage services provided by Melbourne Water.
Managing Director of Melbourne Water, Rob Skinner, said the Commission’s draft determination supports the need for major infrastructure projects in building a sustainable water future. The draft determination also acknowledges the need for higher prices to fund this investment.
“Our water storages are repeatedly testing new lows despite people’s outstanding efforts to use less,” said Mr Skinner.
“We must diversify our water sources in response to climate uncertainty, and the major projects we’re helping deliver will do that. Increasing the price for water services is crucial to paying for the infrastructure that Melbourne needs,” he said.
Melbourne Water is delivering several elements of the Victorian Government’s major water projects, plus three major sewage-related upgrades. This includes:
- reconnecting Tarago Reservoir, which will provide an additional 15 billion litres of drinking water a year from mid-2009
- building the Sugarloaf Pipeline, which will bring up to 75 billion litres of drinking water saved from irrigation upgrades from 2010
- integrating water from the desalination plant into Melbourne’s supply from end-2011
- upgrading the Eastern Treatment Plant to significantly improve the quality of treated water it produces and increase recycling opportunities for non-drinking purposes.
“These projects are the building blocks of a sustainable water future for Melbourne, and in time they will become as significant as the Thomson Dam is today,” added Mr Skinner.
The Commission has recommended a slightly reduced average price increase for Melbourne Water’s services of 20.3% instead of 21.9% over the next four years, which largely reflects lower costs of borrowing.
Since submitting its proposed price increase, and in light of continuing changes in climate and customer demands, Melbourne Water has provided the Commission updated information to assist with its draft determination. Melbourne Water will make a further submission to the Commission to help inform their final decision on pricing, which is due mid-year.
Melbourne’s reservoirs are currently at 28.1% compared with 31.9% at the same time last year.
Media Contact: Andrew McGinnes +613 9235 7277 +61 (0)403 930 846