We are reviewing the charges associated with the Sydney Desalination Plant Pty Ltd (SDP) for the first time since 2011. Prices set in this review will apply from 1 July 2017.
The desalination plant at Kurnell provides an additional source of drinking water for residents of greater Sydney when dam levels are low. No drinking water has been supplied from the plant since 2012. In determining prices, we will assess whether SDP’s expenditure program is efficient given the plant’s operating environment, as outlined in the NSW Government’s Metropolitan Water Plan. We must also comply with a range of pricing principles set out in the Terms of Reference issued by the NSW Government.
Concurrent to this price review, we are also reviewing our 2012 Methodology Paper outlining our approach to the energy and efficiency adjustment mechanisms that apply to SDP.