5th December, 2006 -- Media Release

Independence of Pricing Tribunal tested by Dam decision

The surprise announcement last month that Hunter Water Corporation would build a massive new dam at Tillegra near Dungog will test both IPART and Hunter Water Corporation existing pricing and demand management policies in order to build a dam that both organizations have stated is not needed.

The Independent Pricing and Regulatory Tribunal (IPART) will hold a workshop in Newcastle today to discuss innovative demand-management strategies, planned before the shock dam announcement.

The Hunter Community Environment Centre claims that the Premier’s announcement of Tillegra Dam took water management experts and the public by surprise and has sidelined established urban water planning processes designed to protect consumers and the environment, and allow public input.

Hunter Water’s latest Integrated Water Resource Plan in 2003, concluded that “a new water source would not be required within the next 30 years” and went on to state that “building a new dam at Tillegra would be far less cost effective than many demand management and water conservation initiatives.”

The proposed dam will have significant environmental and social impacts, the Upper Williams being the healthiest remaining river in the Hunter.

If IPART approves the dam, the $300 million needed to build it will be recovered from new and existing water customers in the Hunter and through water sales to the Central Coast.

HCEC spokesperson, Paul Winn said, “Hunter Water Corporation’s submissions to their water license review in October this year did not mention Tillegra and in fact identified augmentations to Grahamstown Dam as the next most cost-effective supply option.”

“The proposed Tillegra Dam is a test for the independence of IPART who will now be under pressure to loosen its water pricing requirements and allow a levy to be imposed on water user.  Why should water-users pay for a dam we don’t need, at the expense of environmentally-friendly strategies that have already been prepared?”

“IPART and Hunter Water must stand firm and not pander to the political motivations of the State Government.”

The Workshop will be held today at 10:30am at the Crown Plaza Hotel.