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Industry data reveals Adelaide has lowest combined operating costs for water

07/09/2009

Industry data reveals Adelaide has lowest combined operating costs for water.

Data recently published by the Water Services Association of Australia (WSAA) in its National Performance Report points to Adelaide having the lowest operating costs for water services.

The WSAA 2007/08 National Performance Report indicates an average operating cost per property for the period of $481, with Adelaide well below the average at $361.

The report provides evidence that since 2002, Adelaide has enjoyed the lowest operating cost per property in 6 out of 7 years, missing out on the lowest ranking by only $1 in 2005/06.

An extract from the report states: "SA Water (Adelaide) had the lowest operating cost per property for the third consecutive year. SA Water notes that this is despite the Commonwealth Grants Commission finding that SA Water faced a cost disadvantage in treating and transporting water."*1

The report goes on to explain larger utilities generally record lower operating costs due to a number of factors including economies of scale, spreading costs over a large customer base and the benefits of contracting out services such as maintenance to third parties which can result in cost efficiencies.

The WSAA is the peak industry body for urban water utilities in Australia.

The National Performance Report is a project of the National Water Initiative (NWI), which was signed by all the States and Territories and the Australian Government. The NWI sets the objectives, outcomes and actions for the ongoing process of national water reform. Through the NWI, the States and Territories agreed to report on the performance of urban water utilities independently, publicly, and on an annual basis with reporting to begin for the 2005-06 financial year.

Copies of the report - the most relevant being Part A - Comparative Analysis can be downloaded via the following link:

https://www.wsaa.asn.au/Publications/Pages/PerformanceReports.aspx

1. South Australian Government 2008, Transparency Statement Water and Wastewater Prices in Metropolitan and Regional South Australia 2008-09, Appendix 5: 2005-06 Annual Efficiency Report (SA Government 2008), p. 23