Media Release

12 Oct 2009

Desalination statement

When the desalination plant starts delivering water this summer it will operate at full capacity for a two year proving period. This is needed to assure its performance and reliability.

Whether or not the plant operates after this two years will depend on dam levels and climatic outlook.

The plant’s operating rules will be considered in the context of the NSW Government’s Metropolitan Water Plan.

For our customers the costs associated with the plant’s construction and two-year proving period were included in the price determination announced by the Independent Pricing and Regulatory Tribunal (IPART) for the four years from 2008-09 to 2011-12.

Desalination makes up just less than half of the price increase.

The decision meant that the typical water bill over the four-year program of prices would be:

	2008/09	2009/10	2010/11	2011/12
200 kL/year household	$878	$933	$974	$997
% increase	16.7%	6.3%	4.4%	2.4%
$ increase	$126	$55	$41	$23

(Figures to be adjusted for CPI)

Sydney’s desalination plant remains on time and on budget to start delivering water this summer.

The figures referred to for 2012-13 and 2013-14 represent an assumption for financial planning purposes to ensure that all financial outcomes were covered.

The financial planning numbers do not forecast any specific operating regime for the desalination plant.

In the past few months the project has celebrated two significant milestones – the completion of the underwater pipe across Botany Bay between Kurnell and Kyeemagh, and the laying of the final piece of aboveground pipe at Tempe.

Sydney Water and its construction partners – the Blue Water Joint Venture which is building the desalination plant at Kurnell, and the Water Delivery Alliance which is building the pipeline from Kurnell to Erskineville – have done and are doing very impressive work.

Learn more about the NSW Government's Metropolitan Water Plan.

 

Return to Media Releases