Answers to Questions

SA WATER

3 Dr McFETRIDGE (Morphett) (1 June 2010).

1. What has been the total percentage and volume reductions in water consumption for the greater Adelaide Metropolitan Region since the introduction of water restrictions and how has this impacted on SA Water revenue?

2. What costs have been associated with each of the water conservation campaigns undertaken by the government?

The Hon. P. CAICA (Colton—Minister for Environment and Conservation, Minister for the River Murray, Minister for Water): I am advised that:

1. The actual impact of water restrictions on consumption can only be an estimate as there have been a number of demand management strategies running concurrently since water restrictions were introduced in 2003.

SA Water's investigation on the impact of restrictions is yet to be completed.

The indicative evidence is that permanent water conservation measures and water restrictions have had an impact on water consumption. Preliminary investigations reveal that the average state-wide sale of pre-permanent water conservation measures was about 230GL per annum, but for the last three years state-wide water sales were about 190GL or less. Note that SA Water does not segment its business by the Greater Metropolitan Region.

It is important to note that over this same time period the Government has implemented various demand management strategies that includes rebates for water saving measures, education programs and targeted audits on high usage companies, all of which contribute to reduced consumption.

SA Water has taken into account, for budget and pricing purposes, an estimate of the impacts of water restrictions on sales volume.

The 2010-11 Transparency Statement (TS) provides information on the estimated impact of water restrictions on total SA Water sales volume. The TS highlights that water prices are set based on 'normal' consumption and not the restricted volume.

The TS indicates that water restrictions are estimated to reduce total water sales by 27GL in 2009-10.

SA Water budgeted sales revenue for 2009-10 has been reduced by $48m to take this into account. As a comparison, in 2008-09 the budget took into account reductions in water sales of 27GLs with an estimated reduction in revenue of $36m. The actual reduction in water sales was subsequently determined to be 36GL with a reduction in revenue of $45m.

2. Since the introduction of water restrictions in October 2003, SA Water has undertaken campaigns to advise the community of the restrictions in place, raise general awareness about the impacts of drought and encourage ongoing water efficiency.

The total costs of all water conservation campaigns to date has been $5.658 million which includes advertising, printing, and educational literature and campaigns.

In 2009-10, SA Water also signed a memorandum of understanding with the then Department of Water, Land and Biodiversity Conservation to undertake communication and education campaigns relating to water security and conservation. To date $0.55m has been contributed.