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.
Recycled water customers
Our recycled water customers include:
- City West Water
- South East Water
- Southern Rural Water.
Pricing principles for recycled 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, we must demonstrate that 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
there has been consultation with the affected customers about their willingness to pay for the benefits of increased recycling.