We received submissions to our Issues Paper for this review
IPART is reviewing the maximum prices that Sydney Desalination Plant Pty Ltd (SDP) can charge Sydney Water for its water supply and security services in the Greater Sydney region from 1 July 2023. Sydney Water passes on these prices to its customers.
SDP is the only major rainfall-independent source of drinking water in the region and can supply up to 15% of Greater Sydney’s daily water needs.
Since our last review, SDP’s role has expanded beyond just drought response. The NSW Government’s Greater Sydney Water Strategy identified the need for it to contribute to the region’s water security by remaining operational both in and outside of droughts. We will assess whether SDP’s proposal is consistent with its new role of helping improve the region’s water resiliency and adaptability. We will also assess whether it represents good value for money for customers and the community.
SDP has proposed higher costs and moderate price increases over the next 4 years to support its expanded role. It has also proposed changes to existing incentive mechanisms and introduced new mechanisms to incentivise good performance and limit its exposure to risk.
The Issues Paper sets out our proposed approach to determining the prices. A number of stakeholders provided feedback on our paper and their submissions can be accessed here.