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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-09-09 Daily Xml
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DESALINATION PLANT

Mrs REDMOND (Heysen—Leader of the Opposition) (14:38): My question is for the Minister for Water Security. Since the government's decision to double the size of the Port Stanvac desalination plant, is it still proposed that the plant will be switched on and off in response to the relative availability of water from the Hills catchments and the River Murray; and, if so, what impact has this had on the price tendered by AGL to supply electricity?

The Hon. K.A. MAYWALD (Chaffey—Minister for the River Murray, Minister for Water Security) (14:38): I thank the Leader of the Opposition for her Dorothy Dixer. The contract that we have with AGL is not a take or pay contract; it will be based on how much electricity is consumed. We will pay for the electricity that is consumed at the rate that we have negotiated in the contract for the next 20 years.

It is a good contract. If we were to run the plant at its full capacity of 100 gigalitres year in, year out it would cost about $75 million a year. However, if we do not run it at that full capacity it will, of course, cost less for the electricity.

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