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:
- Greater Western Water (formerly City West Water)
- South East Water
- Southern Rural Water.
Pricing principles for recycled water
According to our pricing principles recycled water prices should:
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consider the price of any substitutes and customers’ willingness to pay
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cover the full cost of providing the service (with the exception of services related to specified obligations or maintaining balance of supply and demand)
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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:
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we have assessed the costs and benefits of pursuing the recycled water project
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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:
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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
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there has been consultation with the affected customers about their willingness to pay for the benefits of increased recycling.