Question regarding the cost, lifespan, energy considerations, and cost recovery plans for the Southern Seawater Desalination plant at Binningup. The Minister provides specific cost and lifespan figures, addresses energy considerations vaguely, and confirms cost recovery is factored into pricing recommendations.

AnsweredQoN 3685Legislative Council
Asked
15 March 2011
Portfolio
Water

QuestionView source ↗

I refer to the $1 billion Southern Seawater Desalination plant currently under construction at Binningup, and ask -
(1) What will be the cost per kilolitre of water produced from the plant, including in the calculation, -
(a) both the costs of construction and operating the plant; and
(b) just operating costs?
(2) What is the plant’s expected operating life span?
(3) Have projected rising costs for energy been factored into the projected operating costs for the plant, please provide details of the assumptions that have been used?
(4) Does the Government intend to pursue full cost recovery for the water through water pricing, either now or at any point in the future?

AnswerView source ↗

Answered
12 April 2011
Responded by
Minister for Mental Health representing the Minister for Water
Response time
28 days
The Minister for Water has provided the following response.
(1a) $2.46/kL.
(b) 94c/kL.
(2) 25 years.
(3) The costs of energy has been factored in using the best estimate of renewable energy and associated environmental credits over the duration of the plant's operating life span. The Water Corporation is unable to advise further until contractual arrangements are finalised.
(4) The full cost of the Southern Seawater Desalination Plant has been included in the Economic Regulation Authority's (ERA) price recommendations in the August 2009 Final Report from its
Inquiry on the tariffs of the Water Corporation, AQWEST and Busselton Water Board 2008/09
.
The Government will consider the ERA's recommendations when determining the Water Corporation's prices as part of the annual State Budget process.
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