Bulk Recycled Water
We provide recycled water from our two sewage treatment plants to Melbourne’s retail water businesses and some regional water authorities, as well as a private company. These companies then supply recycled water directly to users.
Our recycled water customers include:
- City West Water
- South East Water
- Southern Rural Water
- Yarra Valley Water
- Water Infrastructure Group
- Barwon Water
- Western Water
According to our pricing principles, recycled water prices should:
- Consider the price of any substitutes and customers’ willingness to pay.
- Cover the full cost of providing the service (with the exception of services related to specified obligations or maintaining balance of supply and demand).
- Include a variable component.
Where we do not propose to fully recover the costs associated with recycled water, we must demonstrate to the Essential Services Commission that:
- We have assessed the costs and benefits of pursuing the recycled water project.
- We have clearly identified the basis on which any revenue shortfall is to be recovered.
- If the revenue shortfall is to be recovered from non-recycled water customers, either the project is required under the Statement of Obligations which applies to Melbourne Water or pursuant to other Government policies that apply to Melbourne Water or there has been consultation with the affected customers about their willingness to pay for the benefits of increased recycling.
These prices were reviewed through a public process, where the Essential Services Commission:
- Completed extensive analysis of Melbourne Water’s proposed 2009 Water Plan. The Water Plan sets out the expected costs to deliver planned capital works programs, service standards and forecast volumes for each prescribed service.
- Reviewed capital expenditure, operating expenditure and forecast demand.
- Consulted with stakeholders, including a review of submissions made by interested parties.
The 2009 Water Price Review covers a four year regulatory period from 1 July 2009 to 30 June 2013. The prices set through the review reflect the efficient cost of providing water services and will increase annually during the regulatory period.
Related information: