Goulburn-Murray Water releases Water Plan
Goulburn-Murray Water has submitted its first Water Plan to the Essential Services Commission ( ESC ).
Goulburn-Murray Water Chairperson Don Cummins said the plan covers pricing and services for 2006/07 to 2007/08, which are now regulated by the ESC.
""We are targeting a range of improvements in our service levels and environmental performance, whilst achieving significant cost savings, water savings, and meeting all our statutory obligations,"" Mr Cummins said.
""The Board 's Financial Intent is to limit real price rises to 3% in any one year and I am pleased to announce that for most services this has been achieved.
""Our key focus has been on continuous improvement, delivering cost reductions and more stable prices.
""The Board has targeted 12% cost savings over the next five years, with 5% to be achieved in the first three years.""
Goulburn-Murray Water commissioned consultants Frontier Economics to conduct an independent review of its pricing policies. Their key recommendation, to discontinue the renewals annuity and replace it with a Return on Regulatory Asset Base (RAB) approach, has been adopted by the Board and forms the basis of the Water Plan.
""Combined with a new initiative, an Advanced Maintenance Program, we expect the RAB approach to deliver more stable prices in the long term,"" Mr Cummins said.
""We also expect, in partnership with Water Services Committees, that better long-term asset management decisions will be made, which is particularly important when future infrastructure needs in a given area are not always clear.""
""A range of new key performance indicators have been introduced to help drive continuous improvement of our service levels.
""We will improve our environmental performance and commit to achieving ISO 14001 certification of our Environmental Management System during the period of this plan and continue to encourage innovation by investing $1 million per year in research and development to deliver benefits to the irrigation community.
Mr Cummins also said Goulburn-Murray Water will deliver on State Government's initiatives as outlined in its Our Water Our Future white paper. This includes initiatives to unbundle irrigator entitlements, return water savings to the environment, return Lake Mokoan to wetlands, and improve our natural resource management by better monitoring and understanding our scarce water resources.""
Capital expenditure of $128 million over the next two years is planned, including the delivery of projects designed to achieve water savings that can be returned to the environment. We have also budgeted for projects to increase the safety of our dams, replace ageing infrastructure, and construct new drainage works to provide salinity benefits.""
""I am excited by the challenges we have set ourselves in our first Water Plan, and I encourage all customers and interested community members to read it and provide their comments on it,"" Mr Cummins said.
All stakeholders will have the opportunity to comment on the Water Plan. For further details, visit the ESC web site, www.esc.vic.gov.au , from 3 October 2005 . A copy is also available via the following link:
