Urban Water
Frequently asked questions – Water Industry Competition licences awarded
What is the Water Industry Competition Act (WICA)?
The WICA establishes a clear access regime for the water industry in much the same way as the telecommunications, energy and transport industries over recent years.
This framework will provide even more opportunities for the private sector to become involved in the NSW water industry.
Why have a WICA?
The Act aims to encourage competition in the water industry and to foster innovative recycling projects and dynamic efficiency in the provision of water and wastewater services.
Increasing competition in the metropolitan water market and water recycling are key actions in the NSW Government's Metropolitan Water Plan and State Plan.
When did WICA come into effect?
The Water Industry Competition Act 2006 and the Regulations supporting its implementation (the Water Industry Competition (General) Regulation 2008 and the Water Industry Competition (Access to Infrastructure Services) Regulation 2007) commenced on 8 August 2008.
What does WICA consist of?
The core reforms introduced by the Act are:
- the establishment of a new licensing regime for private sector providers of reticulated drinking water, recycled water and sewerage services
- provisions to authorise IPART to arbitrate certain sewer mining disputes
- the establishment of a third-party access regime for water and sewerage infrastructure.
Key aspects of General Regulation include:
- ensuring new entrants and the public water utilities face similar obligations, where like services are provided
- strict licensing rules to ensure that drinking water meets Australian standards, that recycled water is 'fit for purpose' and that all services are delivered in a safe, reliable manner with minimal environmental impacts
- provisions to prevent retailers from disconnecting small customers for non-payment of debt and to require the implementation of NSW Government social policies, such as pensioner rebates.
Who has a licence to produce recycled water?
The Minister for Water, Phillip Costa has awarded the first ever licences under the Water Industry Competition Act 2006 to Veolia Water Australia and a new water division of Jemena Limited.
The first licence permits Veolia Water to construct, maintain and operate a new recycled water plant at Fairfield.
The second licence permits Jemena to build, own, manage and operate a recycled water network that will initially transport up to 4.3 billion litres of recycled water a year from Veolia Water's recycled water plant to industrial and irrigation customers in Western Sydney.
Veolia Water Australia's and Jemena's proposals were assessed by the Independent Pricing and Regulatory Tribunal and were open to a transparent public consultation process.
What is the Rosehill–Camellia Recycled Water Scheme?
It is a major industrial recycled water scheme for Western Sydney.
The Rosehill–Camellia Recycled Water Scheme will initially supply around 4.3 billion litres per year of recycled water to industry and there is potential for the project to be expanded by a further 3 billion litres a year to customers in Westmead, Parramatta, Wetherill Park, Fairfield and Liverpool.
The $100 million scheme will be built, owned and operated by AquaNet Sydney Pty Ltd and Veolia Water Australia.
A new recycled water plant will be built next to the sewage treatment plant at Fairfield. The recycled water plant will draw secondary treated effluent from Sydney Water's new Liverpool to Ashfield pipeline and treat it by reverse osmosis and ultrafiltration to a high quality suitable for irrigation, use in cooling towers and as boiler feed. A 20 kilometre pipe network will connect the recycled water to customers' properties.
A proportion of the pipe network will consist of re-used gas mains already in the ground.
What customers will use the recycled water?
Major industrial customers, Visy Paper, Marubeni Australia Power Services, Basell Australia and Shell have signed supply agreements with Sydney Water as well as Sydney Turf Club, which owns the iconic Rosehill Gardens Racecourse.
Agreements are expected to be signed with Boral and James Hardie.
When will construction start on the plant?
Construction of the plant is expected to commence later this year, following planning approval, with recycled water on tap as early as 2011.
Why are industrial companies taking up recycling?
To reduce the demand placed on drinking water supplies.
Initially just less than 1 per cent of Sydney's drinking water will be saved by this project and this saving will increase as the scheme expands.
In fact, once a number of major recycling projects are commissioned, ten of Sydney Water's largest industrial customers will be using recycled water instead of drinking water.
Where did this come from?
These include major projects at BlueScope Steel, Port Kembla, Caltex and Continental Carbon at Kurnell, Orica, and this scheme.
Over four years between 2002/03 and 2006/07, Sydney Water's top 50 water users – all industries – reduced their consumption by 17 per cent.
To date, large-scale schemes and individuals' efforts have boosted Sydney's recycling volume to over 25 billion litres a year.
Recycling 25 billion litres of water is a lot. It is more than the total amount of water supplied to the residents of the Illawarra in a year – enough to supply close to 100,000 households.
By 2015 greater Sydney will be recycling 70 billion litres a year, nearly three times the current volume.
For more information
The Minister's Notice of Decision is available on the Independent and Regulatory Tribunal's website at www.ipart.nsw.gov.au
More information on the Act and Regulation is available on the Department of Water and Energy's website please visit www.dwe.nsw.gov.au
More information on the Rosehill-Camellia Recycled Water Scheme is available on Sydney Water's website at www.sydneywater.com.au and go to 'Major Projects'.