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Summary

We have released 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 we will publish these submissions shortly.

We will hold a Public Hearing on 21 February

The public hearing will give stakeholders another opportunity to have their say on our price review for SDP before we release our Draft Report in April 2023. The public hearing will be in-person at the Sydney Masonic Centre on 21 February 2023. An online option will be available for those that cannot attend in-person. You can register for this event here.

We will consider your views in our price review

In April 2023, we will release a Draft Report with our draft prices for SDP. In setting draft prices, we will consider stakeholders’ submissions to our Issues Paper and feedback provided during the public hearing. All stakeholders, including SDP, will have another opportunity to provide comments on our draft prices before we make our final decisions. We plan to release our Final Report in late June 2023.

Key contact
Matthew Mansell
02 9113 7770