Bulk recycled water

We produce Class A recycled water at our two sewage treatment plants and supply this to several water retailers, who then distribute it directly to customers.

Recycled water customers

Our recycled water customers include:

• Greater Western Water 
• Southern Rural Water.
• South East Water
• Trility

Pricing principles for recycled water

Melbourne Water is regulated by the Essential Services Commission (ESC). The Essential Services Commission’s pricing principles require that 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 recycled water.