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Legislative Assembly for the ACT: 2001 Week 5 Hansard (3 May) . . Page.. 1533 ..

ACTEW also has six houses in various parts of Canberra disconnected from the sewage system where local effluent reuse has been implemented. ACTEW installed small treatment plants at these six sites, and the house owners re-use effluent on their own block. This project has been running since December 1994.

2. What tariff is used to set the price for grey water?

The ACT's Independent Competition and Regulatory Commission (ICRC) regulates general water usage rates. There is no set tariff for effluent reuse-prices are negotiated on an individual contract basis because the cost of delivering effluent varies substantially from customer to customer. For example, the cost of pumping effluent from Lower Molonglo to the golf course and winery in Holt is substantially different to the cost of running the North Canberra Effluent Re-use Scheme. Also, in the case of Woodhaven Green, the customer owns, operates and maintains the infrastructure (pumps and pipework) whereas in other schemes ACTEW supplies effluent to the block as it would potable water (ie at pressure, at the block).

Reuse and its environmental benefit was considered during development of the 5-year Price Direction for water and sewerage charges.1 It was recognised that although prices should discriminate between water of various qualities wherever possible, the costs of supplying recycled water was a disincentive. The ICRC recommended that ACTEW Corporation be allowed to negotiate with customers to provide recycled water on the basis that customers pay at least the avoidable costs (ie treatment and distribution costs). Both ACTEW and the Government concurred with the recommendation.

3. Why are rates for grey water 'commercial in confidence' when other water usage rates are not?

Contracts for effluent reuse are commercial in confidence because they have been made between ACTEW and private citizens or companies. However, ACTEW would be willing to seek the agreement of customers for the release of this information and to seek to avoid future contracts on a commercial in confidence basis. At present, rates vary from $0.075 per kL for a customer who owns, operates and maintains their pump, pipeline and associated delivery infrastructure, to 75% of the potable water charge for the NCERS customers (equivalent to $0.72 per kL). Most customers will be on this latter charge, with only Woodhaven Green and BRL-Hardy on a cheaper rate.

The rates for effluent are negotiated according to individual circumstances such as costs of connection and supply, time of use, draw down capacity, capital contribution and maintenance arrangements between customer and provider, and risk and indemnity provisions. They are generally "take or pay" contracts. This means the customer pays a fixed lump sum. This lump sum is based on their average use (over the preceding five years) and a rate of 75% of the potable water charge. ACTEW then sets limits on the instantaneous rate effluent can be taken from the scheme to fit the hydraulic design parameters of the scheme. Within these limits the customer can then take as much effluent as they wish.

ACTEW Corporation uses the following approach to evaluate recycled water projects:

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