Water Conservation and Recycling Implementation Report · response time to main breaks. In 2007-08 detection and repair work was completed in 137 supply zones covering 19,600 kilometres

Water Conservation and Recycling Implementation Report 2007-08

Sydney Water 2007-08 Water Conservation and Recycling Implementation Report i

SW51 09/08

Executive summary

Introduction

Under its Operating Licence, Sydney Water must provide by 1 September each year a report to the Independent Pricing and Regulatory Tribunal (IPART) on the implementation of its Water Conservation Strategy. The Operating Licence also requires Sydney Water to report on progress in meeting the water conservation target. These requirements are the basis for this report.

This report provides a detailed update on the progress of Sydney Water’s water conservation activities and initiatives, which include demand management, leak reduction and recycling programs.

Key achievements in 2007-08

Sydney Water’s customers have made significant efforts to use water efficiently in 2007-08. Water efficiency programs are now saving 76,163 ML a year compared to last year's figure of 58,026 ML (Figure 1). Program highlights for individual water efficiency initiatives are presented in Table 1.

Metropolitan Water Plan

The 2006 Metropolitan Water Plan sets out how the NSW Government will provide a secure supply of water to meet the needs of Sydney through to 2015 and beyond. The plan adopts a multi-faceted approach to ensure water demand will be met through existing water storages and a combination of recycling, water saving measures (reducing demand) and additional supplies.

Sydney Water is one of many agencies responsible for implementing the 2006 Metropolitan Water Plan. Sydney Water’s responsibilities include continuing to implement water efficiency initiatives, and to build a desalinisation plant. The plant will be operational in the summer of 2009-10.

Water Conservation Strategy

Water conservation includes demand management, leak reduction and recycling programs targeting the residential, business and

industrial sectors. Sydney Water first developed a water conservation strategy in 1995 to reduce demand and meet targets set in the 1995 Operating Licence. The strategy was significantly expanded in late 1999 and has continued to evolve through an adaptive management approach. Due to the strategy and other actions, total water consumed by Sydney is now similar to the early 1970s, despite a population increase of about 1.3 million.

Since 1999 Sydney Water has invested over $370 million in operating and capital expenditure and almost $129 million alone in the last year. This money was spent on water conservation initiatives including those in the NSW Government's 2006 Metropolitan Water Plan. In 2007-08 Sydney Water continued to implement water efficiency initiatives and worked with various agencies to develop regulatory processes and knowledge to ensure the sustainable use of water resources.

Progress against target

Under the Operating Licence Sydney Water is required to take action to reduce per person demand by 35% from a 1991 baseline of 506 litres per person per day. This target is to be met by June 2011 and is equivalent to a demand of 329 litres per person per day.

In 2007-08, total demand was 481,701 ML or 306 litres per person per day. Sydney Water’s Operating Licence also requires that “reasonable adjustments are to be made for the effects of weather on water usage”. Weather correction removes the year-to-year variation in water use relating to changes in weather conditions. This gives a truer picture of the real usage trend in consumption. On a climate corrected basis, demand in 2007-08 was 308 litres per person per day. This climate corrected figure includes savings from water restrictions. However, Sydney is currently in Level 3 water restrictions. If restrictions were not in place, water use would have been significantly higher.

Sydney Water 2007-08 Water Conservation and Recycling Implementation Report ii

SW51 09/08

Figure 1: Yearly water savings achieved since 1999

It is estimated that had restrictions not been in place consumption would have been about 378 litres per person per day. This is a reduction of 11 litres per person per day on last year’s estimate of 389 litres per person per day without restrictions.

Water use is expected to increase when temporary level 3 restrictions are lifted. However, the extent to which water saving behaviours are retained by customers and over what period of time is difficult to predict. In September 2007, the NSW Government announced long term water savings rules would be put in place once level 3 restrictions are lifted. These long term rules will remain in place regardless of the dam levels. It has not been decided when restrictions will be lifted, however, for this report it has been assumed that temporary restrictions will be lifted in the summer of 2009/10. From this time, there will be a gradual increase in water use as households/people adapt to the lifting of restrictions. It is estimated that there will be up to 30% retention of savings achieved by level 3 water restriction savings at June 2011 (refer to Figure 2).

Planned strategy to 2010-11

Sydney Water has continued to review the Water Conservation Strategy to ensure it is on track to meet the Operating Licence target and 2006 Metropolitan Water Plan requirements.

Sydney Water has updated estimated water savings and costs for existing programs as well as future programs. These savings and costs have been used, along with other factors, to evaluate and rank the programs. This will help to develop a revised strategy to deliver the required outcomes in the most cost effective manner.

Sydney Water will continue the current programs plus a number of new initiatives. The key initiatives are water conservation programs for businesses (EDC Business Program) and residential/ household gardens (Love Your Garden) as well as Rainwater Tank Rebates, leak reduction in Sydney Water's distribution system and recycled water projects. Ongoing strategy and program reviews will continue to identify the best ways to reach the target. Figure 2 illustrates the key components of the strategy.

Sydney Water 2007-08 Water Conservation and Recycling Implementation Report iii

SW51 09/08

Figure 2: Contribution of program areas to meeting target

Sydney Water 2007-08 Water Conservation and Recycling Implementation Report iv

SW51 09/08

Table 1: Water efficiency initiatives

Program Description Program highlights

1. WaterFix

(residential)

WaterFix formally started in 2000. The program

offers the installation of water efficient 3 star rated

showerheads, tap flow regulators, toilet cistern

flush arrestors and the repair of minor leaks to

residential households. The service is offered to

residents from $22 and to low-income concession

cardholders for free.

� 32,038 homes participated in the program in 2007-08, bringing the total to 392,610.

� Water savings of 8,206 ML/year to date.

� Average saving of $55 a year in energy and water bills for each household.

2. WaterFix

(Department of

Housing)

Launched in November 2004, the Department of

Housing WaterFix Program is similar to the main

WaterFix Program. It is available at no charge to

residents and is jointly funded by Sydney Water

and Department of Housing.

� 3,592 Department of Housing homes were fitted with WaterFix devices in 2007-08, bringing the total to 73,732.

� Water savings of 1,541ML/year to date.

3. Do It Yourself

Water Saving

Kits

Developed as an alternative to the full service

WaterFix, the free kits contain two flow regulators

for showers, two flow regulating aerators for

bathroom basin taps and one flow regulating

aerator for kitchen taps.

� 60,353 kits were distributed in 2007-08, bringing the total number of kits distributed to 187,970.

� Water savings of 911 ML/year to date.

4. Washing

Machine Rebate

From 1 March 2006, $150 rebates have been

available to residential customers and tenants who

buy washing machines with a 4-star water

efficiency rating.

� 63,047 rebates were paid in 2007-08, bringing the total to 117,287.


5. Rainwater

Tank Rebate

The program offers residential customers a rebate

for installing a new rainwater tank. Rebates range

from $150 for a 2,000 litre capacity tank to $500

for tanks with capacity equal to or greater than

7,000 litres. Customers qualify for an additional

$500 (one internal connection) or $1,000 (two

internal connections) rebate if a licensed plumber

connects the tank for indoor use.

� 10,828 rebates were paid in 2007-08, bringing the total to 47,670.


� Rebate increased to up to $1,500 for internal connections from 1 July 2007.

6. Love Your

Garden

The program involves a qualified horticultural

expert visiting a customer's home and evaluating

the amount of water the garden needs.

� 5,890 properties participated in the program in 2007-08, bringing the total to 10,822.


7. Outdoor water

Conservation

This program involves an ongoing campaign of

community education combined with regulatory

measures such as pricing reform and water saving

measures. The effect of these programs is

currently masked by drought restrictions.

� Restrictions have achieved significant reductions in demand and demonstrate the savings that can be achieved by reducing outdoor water use.

8. Every Drop

Counts Business

Program

Commencing in 2001, the program involves

working with businesses and government

organisations to establish cooperative

partnerships, advocate technical water

management solutions and encourage corporate

citizenship.

� This year the Every Drop Counts Business Program won a NSW Government Sustainability Green Globe Award and was named as a finalist in the education category of the Banksia Award.

� 23 business customers signed up to Every Drop Counts Business Program in 2007-08, bringing the total to 392.

� As at 30 June 2008, water savings of 13,838 ML/year have been achieved. This includes the NSW Government Water Efficiency and Pilot Water Saving Fund.

9. Every Drop

Counts in

Schools

This program involves reducing water use in

schools by increasing awareness of water

conservation through education resources, teacher

professional development and monitoring school

water use to detect leaks.

� Smart water monitoring and alarm systems were installed in 41 schools and 49 schools attended the teacher professional development day.

� 151 schools received education resources to support water conservation in 2007-08.


Sydney Water 2007-08 Water Conservation and Recycling Implementation Report v

SW51 09/08

Program Description Program highlights

10. Rainwater

Tank in Schools

Rebate

This program offers schools a rebate of up to

$2,500 towards the cost of buying and installing a

rainwater tank. To receive a rebate, each school

must complete a water conservation education

program.

� 29 schools received a rebate in 2007-08 year, bringing the total to 289.


11. Leak

reduction

This program contributes to reducing leaks from

Sydney’s water distribution system by actively

detecting and repairing leaks, managing pressure

to reduce high pressure areas and improving the

response time to main breaks.

� In 2007-08 detection and repair work was completed in 137 supply zones covering 19,600 kilometres of mains.

� Water savings of over 23,000 ML/year achieved to date.

� For the second year in a row, very high compliance was achieved with repair response time targets.

12. Water

recycling

Water recycling projects are being delivered as

part of the 2006 Metropolitan Water Plan.

Recycling projects implemented to date include

recycling at Sydney Water STPs, urban and

agricultural irrigation projects, residential dual

reticulation and industrial projects.

� Total savings from all recycling projects are about 11,397 ML/year. This is for projects commencing from 1999.

13. Sewer mining

Sydney Water has detailed guidelines in place for

sewer mining proposals and a standard sewer

mining agreement has been developed. Many

schemes have received funding from the Climate

Change Fund.

� A sewer mining scheme has been commissioned at Pennant Hills Golf Course.

� There are numerous sewer mining projects currently in planning phase.

14. Pilot

programs

A number of water conservation pilot programs

began or were completed in 2007-08. These pilot

programs target reductions in residential and

business use, and leaks.

� The pilots include: Expanded WaterFix, Toilet Replacement Program, Multi Unit Metering and Business Water Saver Grants.

� Trials commenced on four new technologies targeting leaks.

� New pilots under investigation include: remote sensing irrigation, irrigation, maintenance and design, accredited garden centres and reducing water loss from pools.

15. Community

education

Community and industry groups are being actively

engaged via demand management programs,

such as EDC Business Program and community

events.

� During 2007-08, visitor numbers to Sydney Water’s water saving web pages included: ‘Saving Water in Your Home’ - more than 260,000 visitors and ‘Saving Water in Your Business’ - almost 50,000 visitors.

16. Research &

development

Sydney Water has an active ongoing research

program that focuses on water efficiency and

providing a sustainable water service.

� Research projects in 2007-08 include reviews of water efficiency programs, using recycled water for washing clothes, health risk assessments, customer research and climate change.

Note: In some cases the work completed in 2007-08 has been slightly adjusted to ensure the total figure reported in 2007 matches the total to date.

Sydney Water 2007-08 Water Conservation and Recycling Implementation Report vi

SW51 09/08

Table of contents 1 Introduction and context ........................................................................................................1

1.1 The purpose of this report ..................................................................................................................................1

1.2 Metropolitan Water Plan.....................................................................................................................................1

2 Planning approach..................................................................................................................2

2.1 History ................................................................................................................................................................2

2.2 Strategy objective ...............................................................................................................................................2

2.3 Planning approach .............................................................................................................................................2

2.4 Target areas .......................................................................................................................................................2

3 Achievements and progress ..................................................................................................4

3.1 Water use in greater Sydney..............................................................................................................................4

3.2 Program success................................................................................................................................................5

3.3 Water savings.....................................................................................................................................................7

3.4 Investment ..........................................................................................................................................................9

4 Water conservation activities and initiatives 2007-08 .......................................................11

4.1 Overview...........................................................................................................................................................11

4.2 Residential water efficiency..............................................................................................................................11

4.3 Business water efficiency .................................................................................................................................13

4.4 School programs ..............................................................................................................................................15

4.5 Leak reduction ..................................................................................................................................................16

4.6 Water recycling.................................................................................................................................................17

4.7 Pilot programs ..................................................................................................................................................21

4.8 Regulatory measures .......................................................................................................................................21

4.9 Externally managed projects ............................................................................................................................22

4.10 Community education.....................................................................................................................................24

4.11 Research and development activities ............................................................................................................24

5 Water Conservation Strategy 2008-11.................................................................................26

5.1 Introduction.......................................................................................................................................................26

5.2 Planning process..............................................................................................................................................26

5.3 Demand forecasting .........................................................................................................................................26

5.4 Sensitivity analysis ...........................................................................................................................................28

5.5 Program evaluation and ranking ......................................................................................................................28

5.6 Programs to be delivered in 2008-09 ...............................................................................................................28

5.7 Planned strategy to 2010-11 ........................................................................................................................29

5.8 Forecast water savings to 2010-11 ..................................................................................................................30

5.9 Forecast expenditure to 2010-11 .....................................................................................................................32

Sydney Water 2007-08 Water Conservation and Recycling Implementation Report vii

SW51 09/08

Appendix 1 Reporting requirements reference ................................................................34

Appendix 2 Managing supply deficiencies .......................................................................35

Appendix 3 Water use trends.............................................................................................36

Appendix 4 Residential water use in Australia.................................................................43

Appendix 5 Correcting for climate.....................................................................................44

Appendix 6 Water conservation reporting schedule........................................................45

Appendix 7 Community education ....................................................................................49

Appendix 8 Water leakage (water balance).......................................................................52

Appendix 9 Water recycling-reducing discharges ...........................................................54

Appendix 10 Water savings assumptions...........................................................................58

Appendix 11 Sensitivity analysis .........................................................................................61

Appendix 12 Program evaluation and ranking ...................................................................65

Appendix 13 Glossary...........................................................................................................67

Appendix 14 List of acronyms and units ............................................................................69

Appendix 15 References.......................................................................................................70

Sydney Water 2007-08 Water Conservation and Recycling Implementation Report viii

SW51 09/08

List of figures and tables

Figure 1: Yearly water savings achieved since 1999 ................................................................................ ii Figure 2: Contribution of program areas to meeting target....................................................................... iii Figure 3: Breakdown of total water consumed by key customer segments .............................................. 3 Figure 4: Breakdown of water use within residential sector (in the absence of water restrictions)............ 3 Figure 5: Per person demand trends 1991-2008 (12 month rolling average) ........................................... 4 Figure 6 Yearly water savings achieved since 1999 ................................................................................ 6 Figure 7: Planning Process.....................................................................................................................26 Figure 9 Total water demand since 1952................................................................................................36 Figure 10: Per person water demand since 1952 ...................................................................................36 Figure 11: Residential sector water demand - volumetric .......................................................................37 Figure 12: Residential houses water demand – per property ..................................................................37 Figure 13: Residential units water demand – per unit .............................................................................38 Figure 14: Industrial water demand – per property .................................................................................38 Figure 15: Commercial water demand – per property .............................................................................39 Figure 16: Government and institutional water demand – per property...................................................39 Figure 17: Water leaks ...........................................................................................................................40 Figure 18 Residential sector water demand forecast ..............................................................................41 Figure 19: Business sector water demand forecast ................................................................................41 Figure 20: Forecast of non revenue water ..............................................................................................42 Figure 21 Climate Correction..................................................................................................................44 Figure 22: Recycled water usage by sector ............................................................................................54 Figure 23: Drinking versus recycled water use in STPs ..........................................................................56 Figure 24 Total program water saving sensitivity analysis ......................................................................64 Table 1: Water efficiency initiatives.......................................................................................................... iv Table 2: Yearly water savings 1 (ML/year) ............................................................................................... 7 Table 3: Sydney Water Program Investment (gross $’000)...................................................................... 9 Table 4: Performance highlights of residential sector program ...............................................................11 Table 5: Performance highlights of the EDC Business Program and Schools Program ..........................14 Table 6: Performance highlights of leak detection programs...................................................................16 Table 7: Performance highlights of recycling programs ..........................................................................18 Table 8: Drinking water savings in 2007-08 for recycled water schemes since 1999 ..............................19 Table 9: Collaborative research..............................................................................................................25 Table 10: Forecast water savings 1 (ML/year).........................................................................................30 Table 11: Forecast Sydney Water yearly program investment ($’000)....................................................32 Table 12: Reporting guide for auditors....................................................................................................34 Table 13: Average annual residential water supplied (kL/property) 2001-02 to 2006-07.........................43 Table 14: Water conservation reporting schedule – Actual Performance 2007-08 ..................................45 Table 15: Water conservation reporting schedule – Expected Performance 2008-09 .............................47 Table 16: Community water conservation education activities 2007-08 ..................................................49 Table 17: Water balance 2007-08 (ML) .................................................................................................53 Table 18: Sectoral consumption 2007-08 (ML) .......................................................................................53 Table 19: Water recycling schemes in operation ....................................................................................55 Table 20: Recycled water use by 2010-11..............................................................................................57 Table 21: Water saving assumptions to 2010-11 and sensitivity around the forecast..............................58 Table 22 Individual program water saving sensitivity analysis ................................................................61

SW51 09/08

Sydney Water 2007-08 Water Conservation and Recycling Implementation Report 1

SW51 09/08

1 Introduction and context

1.1 The purpose of this report

The 2007-08 Water Conservation and Recycling Implementation Report is required under Part 9 of Sydney Water’s 2005-2010 Operating Licence.

The report describes the following:

� Sydney Water’s Water Conservation Strategy.

� Progress towards meeting the Operating Licence water conservation target.

� Implementation of water efficiency initiatives for the 2007-08 financial year.

� Future plans for water efficiency programs.

Appendix 1 provides a cross reference to specific Operating Licence reporting requirements contained within the report.

1.2 Metropolitan Water Plan

The 2006 Metropolitan Water Plan sets out the NSW Government’s plan for a secure supply of water to meet the needs of Sydney and beyond.

Sydney’s water supply and demand balance will be met through existing dam supplies and a combination of recycling, water saving measures and additional supplies. The planned recycling schemes alone will increase recycling to 70 GL a year by 2015. A comprehensive range of water saving initiatives is expected to save 145 GL a year by 2015. Appendix 2 provides detail on managing supply deficiencies.

Sydney Water is one of many agencies responsible for implementing the 2006 Metropolitan Water Plan. Sydney Water’s responsibilities include continuing to implement demand management, leak reduction, recycling activities and building a desalination plant.

A review of the current plan has started in preparation for developing the 2010 Metropolitan Water Plan. Sydney Water is participating in this process.

Sydney Water continues to review its own Water Conservation Strategy every year within the context of the 2006 Metropolitan Water Plan.


SW51 09/08

2 Planning approach

2.1 History

Sydney Water has implemented water efficiency activities since the early 1990s. Quarterly meter reading and usage based pricing was introduced in 1990. The usage based component has steadily increased over time. In January 1995, Sydney Water was established as a State Owned Corporation, and the new corporation’s Operating Licence included demand reduction targets for 2000-01 and 2010-11.

A Demand Management Strategy was developed in 1995. This strategy is now a Water Conservation Strategy that includes demand management, leak reduction and recycled water programs. Sydney Water’s program relies on an adaptive management process and learning from experience, involving a planning, delivery, evaluation and review cycle.

2.2 Strategy objective

The objective of the strategy is to meet the Operating Licence target in the most cost effective manner. Sydney Water is required to reduce the per person quantity of water drawn from all sources (excluding recycled water) by 35% from June 1991 to June 2011. This is a reduction from 506 litres per person per day in 1991 to 329 litres per person per day by 2011. Based on current population estimates, this per person target converts to a volumetric target of almost 533,670 ML/year by June 2011. Sydney Water’s Water Conservation Strategy is also a key part of the demand and supply balance under the 2006 Metropolitan Water Plan.

2.3 Planning approach

Sydney Water’s approach to planning the Water Conservation Strategy involves forecasting demand, assessing the strategy's progress against the target, then developing and evaluating water conservation options to meet the target.

A baseline forecast is developed that represents a ‘do nothing’ situation. The savings achieved by the water conservation options are subtracted from this baseline to develop the forecast demand.

A levelised cost planning approach is used to evaluate, on an economic basis, the options to reduce demand. Levelised cost takes into account the capital and operating costs and water savings for each year over the 30 year analysis period. Yearly costs and water savings are discounted to provide a unit cost for each kilolitre of water saved.

The levelised cost is one criterion used to rank the options being considered. Other criteria include social, environmental and implementation considerations. Sydney Water has analysed more than 200 demand and supply options in developing the strategy to date.

As the programs are implemented, Sydney Water reviews and evaluates the strategy to confirm the effectiveness of the programs, and to develop further programs if required.

2.4 Target areas

The programs in the Water Conservation Strategy target all the major areas of water use. In developing the strategy, Sydney Water considers the programs and products to best address targeted areas of water use.

Figure 3 shows a breakdown of total water supplied by key customer segments. The majority of the water supplied was for the residential sector making up 72%. The remaining 28% was for the business and government sectors.

Figure 4 shows a breakdown of water use within the residential sector. The largest uses within the sector are showering and outdoor (garden watering), typically accounting for 48% of the residential use. Programs have been implemented to target these uses. Water use reductions can be achieved through incentives, regulation, education and structural solutions such as water recycling, leak repairs and pressure reduction. A combination of these methods is required for effective program delivery, supported by an underlying program of research, demand analysis and program evaluation.


SW51 09/08

Government & Other

8%

Commercial

10%

Industrial

10%

Residential Single dwelling

50%

Residential Multi-unit

22%

Figure 3: Breakdown of total water consumed by key

customer segments

Key programs in the Water Conservation Strategy:

� residential indoor programs – private and public housing.

� residential outdoor education and advisory programs.

� residential rebate programs – rainwater tanks and washing machines.

� business sector programs – all non-residential customers, for example commercial, industrial and government.

� leak reduction programs – leak detection

and repair, pressure reduction, and response time improvements.

� Recycled water programs – recycled water use by industrial, residential and irrigation customers.

� Regulations – Building Sustainability Index (BASIX), Water Efficiency Labelling Standards (WELS) and Water Efficiency Standards (WES).

Sydney Water implements most of these programs except for some regulatory and business sector programs that are being implemented by other government agencies. The level of private sector involvement is also increasing, particularly in providing recycled water.

Sydney Water has mostly targeted its water efficiency programs at the existing customer base, primarily through incentive and education programs and reducing leaks. However, development and building approval processes provide a mechanism to ensure water efficiency practices are incorporated into all new and renovated homes through the BASIX scheme. The NSW Government’s water use reduction targets for new developments will significantly reduce the incremental demand on existing water supplies.

1%

4%

14%

16%

18%

24%

24%

0% 5% 10% 15% 20% 25% 30%

Dishwasher

Pools, car washing,hose down

Toilet

Kitchen, laundry,bathroom taps, leaks

Washing machine

Lawn and gardenwatering

Shower

Figure 4: Breakdown of water use within residential sector (in the absence of water restrictions)


SW51 09/08

3 Achievements and progress

3.1 Water use in greater Sydney

The introduction of voluntary restrictions in November 2002, in conjunction with the Go Slow on the H2O outdoor campaign, reduced demand through the following summer with diminishing impact through the 2003 winter. Following the introduction of mandatory restrictions on 1 October 2003, per person demand fell sharply by a further eight per cent by June 2004 and another six per cent by June 2005. In June 2005, Level 3 restrictions were introduced. Total demand for 2005-06 was similar to total demand in 2004-05, in spite of the second half of the year having significantly below average rainfall, and higher than average temperatures. In 2006-07, per person demand fell a further four per cent. In 2007-08, per person demand fell an additional 6.7%. Detailed water use trends are provided in Appendix 3.

In 2006-07, it was estimated that Sydney Water supplied the average residential customer 199 kL. The National Water Commission compared yearly residential water supplied by Sydney Water and other major utilities around Australia. For more information see Appendix 4.

The water savings generated by the water conservation programs are estimated to have reduced per person climate corrected demand by 48 litres per person per day since 1999. The observed and climate corrected per person demand trends from 1991 to 2008 are shown in Figure 5.

Observed per person demand is represented as a 12-month rolling average of total water supplied per day divided by the estimated daily population. The climate corrected trend adjusts the observed data to remove (as far as practical) the influence of weather and shows what demand would have been under ‘average’ climate conditions. It includes the savings gained from mandatory water restrictions.

Figure 5: Per person demand trends 1991-2008 (12 month rolling average)


SW51 09/08

In Figure 5 the red line indicates actual demand, the blue line indicates climate corrected demand and the green line indicates climate corrected demand without the presence of water efficiency programs. All lines include the impact of drought restrictions on demand. The climate corrected figure of 308 litres per person per day includes the savings due to drought restrictions. It is estimated that without restrictions demand would have been 378 litres per person per day or about 594,700 ML. This figure is calculated by subtracting the estimated savings from the water conservation programs from an estimated baseline demand. Baseline demand (excluding savings from water conservation programs and restrictions) is estimated to be 426 litres per person per day. This figure is climate corrected. From this figure Sydney Water deducts the estimated savings from water conservation programs of 48 litres per person per day to arrive at the figure of 378 litres per person per day.

As at 30 June 2008, observed per person demand is 306 litres per person per day, down from 328 litres per person per day at 30 June 2007. To evaluate progress against the water conservation target, Sydney Water’s Operating Licence requires that reasonable adjustments be made for the effect of weather on water use. According to Sydney Water’s Climate Correction Model, climate corrected demand for 2007-08 is 308 litres per person per day. Climate correction calculations are in Appendix 5.

Since implementing the Water Conservation Strategy in 1999, Sydney Water estimates that water savings of 76,163 ML per year have been achieved. These savings have primarily been from:

� leak reduction (over 23,000 ML/year)

� the EDC Business Program (13,838 ML/year)

� residential indoor and outdoor programs (16,076 ML/year)

� drinking water substitution from water recycling (11,397 ML/year since 1999).

Table 2 and Table 3 show detailed program savings and costs to date, respectively. Figure 6 shows the growth in water savings from water efficiency programs over the past nine years.

During the past year, water conservation programs increased water savings by an estimated 18,137 ML/year with an expenditure of almost $129 million. The increase in expenditure from 2006-07 to 2007-08 is largely due to the increased expenditure on recycled water projects. As more recycled water projects are implemented, expenditure will continue to rise.

3.2 Program success

Leak reduction, the Every Drop Counts (EDC) Business Program and WaterFix continue to be the most successful programs, achieving high levels of water savings. Due to the success of the EDC Business Program, Sydney Water won the Government Water Award in the 2008 NSW Government Green Globe Awards. This award was for developing the Best Practice Guidelines for Water Conservation in Commercial Office Buildings and Shopping Centres. The EDC Business Program was also named as a finalist in the education category of the Banksia Award.

The Wollongong Recycling scheme, providing high grade water to BlueScope Steel, continues to contribute to significant water savings. Savings from recycling will continue to increase as further schemes are commissioned.

Sydney Water has played a major role in implementing WELS and BASIX, though these are not managed by Sydney Water. The water savings from these schemes are beginning to be realised and provide an important long-term contribution to the strategy.


SW51 09/08

Figure 6 Yearly water savings achieved since 1999


SW51 09/08

3.3 Water savings

Table 2: Yearly water savings 1 (ML/year)

Program 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

Residential

WaterFix (residential) 765 2,525 3,559 4,285 4,889 5,734 6,643 7,536 8,206

WaterFix (Department of Housing, includes expanded program) 167 627 1,466 1,541

DIY water saving kits 40 180 618 911

Washing Machine Rebate (includes 2003 pilot) 10 118 118 260 1,172 2,430

Rainwater Tank Rebate 31 155 481 928 1,394 1,868

Love Your Garden 5 157 198 524 1,150

Education, water saving measures and pricing2

Business

Business programs3 680 2,298 4,307 5,767 8,116 11,842 19,538

NSW Government Water Efficiency 408 520

Smart Rinse Program (includes 2007 pilot) 1 260

Business Amenity Retrofit (2007 pilot) 12 12

Every Drop Counts in Schools 102 102

Rainwater Tanks in Schools 3 21 38 43

Leak reduction

Active Leak Detection 949 5,439 9,089 12,374 15,148 16,790 18,506 20,915 21,974

Pressure Management 0 0 0 0 0 0 102 161 840

Improved leak/break response times 0 0 0 0 0 0 0 730 730

Recycled water

Operational schemes

Existing STP reuse and minor recycling4 5 5 5 5 626 671 1,838 2,101 2,047


SW51 09/08

Program 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

Rouse Hill 313 1,337 1,370 1,698 1,652 1,402

Wollongong Stage 1 (BlueScope Steel) 4,335 6,652

Botany - Orica (non Sydney Water scheme) 200 529

SOPA (non Sydney Water scheme) 850 778 588 599 723 767

Regulatory measures

WELS 431 1,139 1,774

BASIX 949 2,854

Pilots5

Expanded WaterFix 0

Toilet Replacement Program 7 14

Multi Unit Metering 0

Business Water Saver Grant 0

Total savings 1,719 7,969 13,333 20,166 27,364 31,885 40,147 58,026 76,163

1 - Only water savings achieved since 1999 are included.

2 - No savings are attributed to this program as they are included in the savings from the current drought restrictions, and cannot be separately differentiated.

3 - This includes savings from the One to One Partnerships, Pilot Water Savings Fund and Enhanced Water Savings Fund, Climate Change Fund and Water

Saving Action Plans.

4 - Based on the 1998-99 drinking water use at STPs as baseline (2,555 ML/year).

5 - Savings from pilots subject to further evaluation.


SW51 09/08

3.4 Investment

Table 3: Sydney Water Program Investment (gross $’000)

Program 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

Residential

WaterFix (residential) 45 4,000 12,068 6,508 4,609 4,133 5,264 5,965 6,200 7,731

WaterFix (Department of Housing, includes expanded program) 1,204 2,973 5,356 539

DIY water saving kits 1,296 2,926 1,839 753

Washing Machine Rebate (includes 2003 pilot) 474 796 18 1237 7,381 10,642

Rainwater Tank Rebate 374 1,386 3,687 3,926 4,225 5,249

Love Your Garden 249 181 865 954 2,089 2,967

Education, long term water saving rules and pricing 230 750 185 2,047 818 1,621 174 94 1,723

Business

Business programs 841 1,000 393 1,884 2,142 2,491 2,639 3,517 4,270

Climate Change Fund (former Water Saving Fund) 12,847 25,478 6,339

Pilot Water Saving Fund 1,235 636 428 6

NSW Government Water Efficiency 16 1,030 595

Smart Rinse Program (including pilot) 228 563

BizFix (pilot) 5 200 2

Recycled water program development and managing existing schemes 1 450 537 918

Every Drop Counts in Schools 10 127 261 238

Rainwater Tanks in Schools 153 446 299 244

Leakage reduction

Active Leak Detection 500 1,400 1,100 1,681 2,482 2,455 4,838 5,491 5,561

Pressure Management 135 256 1,828 4,953 9,757


SW51 09/08

Program 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08

Improved leak/break response times 4,000 4,000 4,000

Recycled Water

Operational schemes

Existing STP reuse and minor recycling 231 342 4,727 1021 519 330

Rouse Hill – stage 1 2,000 2,000 1,667

Wollongong – stage 1 (BlueScope Steel) 260 7,507 10,968 5,148 1,000 1,000 1,114

Schemes under development2

Rouse Hill – stage 2 1,600 2,912 49,500

Wollongong – stage 2+3 261 12,002

Hoxton Park 266 240 749

Quakers Hill – stage 1 150

Other irrigation 125

Pilots

Expanded WaterFix 899 323

Toilet Replacement Program 454 18

Outdoor Residential Programs 518

Business Water Saver Grant 474

Program management

Program management 516 796 1,315 893 1130 992 883 943 894

Totals

Total investment 45 6,087 16,014 9,896 20,205 24,378 31,432 52,731 83,618 128,937

1 - This is the cost to Sydney Water for developing recycled water programs within the business sector.

2 - Costs for schemes under development only include costs incurred by Sydney Water such as planning and some capital costs. Many of these projects

involve significant investment by developers or the private sector, which is not captured in this table.


SW51 09/08

4 Water conservation activities and initiatives 2007-08

4.1 Overview

The water conservation activities and initiatives in 2007-08 include programs in the areas of:

� residential water efficiency

� business water efficiency

� school programs

� leak reduction

� water recycling

� pilot programs

� regulatory measures

� externally managed projects

� community education

� research and development

The savings, expenditure and key performance indicators for these activities and initiatives in 2007-08 are shown in Appendix 6. Also shown are the planned programs for 2008-09.

4.2 Residential water efficiency

The residential water efficiency programs include:

� WaterFix (formerly ‘Retrofit’)

� WaterFix for Department of Housing properties

� Do It Yourself (DIY) Water Saving Kits

� Washing Machine Rebate

� Rainwater Tank Rebate

� Love Your Garden

� outdoor water conservation.

Table 4 lists performance highlights for residential sector programs.

WaterFix

The WaterFix Program offers householders the opportunity to have a qualified plumber visit their home to provide a new water efficient (3-star rated) showerhead and tap flow regulators, a toilet cistern flush arrestor for single flush toilets and the repair of minor leaks. The service has a retail value of $180. The WaterFix Program is offered free to low-income households holding a Pensioner Concession Card, a Health Care Card or a Veterans’ Affairs Gold Card. It is provided to other customers from $22. If requested, additional showerheads are $22 each for the basic range and $66 each for the premium range.

WaterFix for Department of Housing

A second component to the WaterFix Program involves a WaterFix service for Department of Housing (DoH) properties. The service was offered to DoH tenants for free, and was funded jointly by Sydney Water and the Department of Housing.

Table 4: Performance highlights of residential sector program

Program Program highlights

WaterFix

466,342 homes (including Department of Housing) in Sydney Water's area of operation

have now participated saving 9,747 ML of water a year. The number of participants is

equivalent to 29% of all households in Sydney Water's area of operation.

DIY Water Saving Kits 187,970 kits have been distributed saving 911 ML of water a year.

Washing Machine Rebate 117,287 rebates have been paid saving 2,430 ML of water a year. .

Rainwater Tank Rebate 47,670 rebates have been paid saving 1,868 ML of water a year.

Love Your Garden 10,822 properties have participated in the program, achieving savings of 1,150 ML of

water a year.


SW51 09/08

The combined programs of WaterFix and WaterFix for DoH have serviced 466,342 households, including 73,732 DoH properties. This is the equivalent to 29% of all households in Sydney Water’s area of operations. During 2007-08, Sydney Water serviced a total of 35,630 households, including 3,592 properties owned by DoH.

Since the program commenced, 517,051 water efficient showerheads have been installed or have had inline regulators inserted to make existing showerheads water efficient. This total also includes installations from the initial pilot program. It is estimated that the WaterFix Program, including DoH, has resulted in a reduction in residential water use of about 9,747 ML/year.

DIY Water Saving Kits

The DIY Water Saving Kit Program was developed as an alternative to the full service WaterFix Program (see above). The kits provide householders with the opportunity to modify their existing inefficient showerheads and taps so that they provide a similar flow rate to water efficient models. The program also provides easy access to water efficiency for householders who would prefer to organise their own installation.

More than 187,970 kits have been distributed since the program began, with 60,353 distributed in 2007-08. It is estimated that savings of 911 ML/year have been achieved.

More than one third of all homes in Sydney Water's area of operation have participated in the WaterFix Program or have a DIY Water Saving Kit.

DIY Water Savings Kits

Washing Machine Rebate

A rebate of $150 was available to residential customers who bought a new washing machine with at least a 4-star water efficiency rating. The rebate was initially offered for one year (March 2006 to February 2007). Due to the success of the program, it was extended until 31 July 2008. A new rebate was offered from 1 August 2008. This is discussed in section 5.6.

As at 30 June 2008, Sydney Water had paid 117,287 rebates since the start of the program, with 63,047 paid in 2007-08. It is estimated that savings of 2,312 ML/year have been achieved since March 2006. The market share of 4-star water efficient washing machines has increased from around seven per cent to almost 51.2% in May 2008

1.

Rainwater Tank Rebate

The Rainwater Tank Rebate Program offers customers a rebate for installing and connecting a new rainwater tank, excluding properties that have to install a tank to comply with BASIX. To encourage the maximum water saving yield from a tank, the program offers rebates ranging from $150 for a 2,000-litre capacity tank to $500 for tanks with a capacity equal to or greater than 7,000 litres. An additional rebate is available if a licensed plumber connects the tank for indoor use to supply washing machines or toilets. This additional rebate, which was $150 from July 2006, was increased in October 2006 to $300 to further promote indoor connections and increase savings. In July 2007, the NSW Government announced a further increase in this rebate to $500 for a connection to a washing machine or toilet and $1,000 for a connection to both.

In 2007-08 Sydney Water paid 10,828 rebates to customers, more than 900 a month. A total of 47,670 rebates have been paid since the program commenced in October 2002. The program has saved an estimated 1,868 ML/year.

Love Your Garden

The Love Your Garden Program provides tailored advice about a garden's specific watering needs. The program is targeted at customers who use significant amounts of water on their garden. The service involves a qualified horticultural expert visiting a customer’s home and evaluating the amount of water the garden needs. Tools such as tap timers, rain gauges

1 Market share of 51.2% only applies in NSW.


SW51 09/08

and tap tags are provided along with a detailed report. This service costs an estimated $180 but is provided to customers for $33 or $55 for a large garden (more than 1,200m2).

At 30 June 2008,10,822 properties have participated in the program with 5,890 properties participating in 2007-08. It is estimated that savings of 1,150 ML/year have been achieved through better watering practices and smart water tools. Landscape assessments are planned for about 8,000 additional properties by 2009.

A horticultural expert working in the Love Your Garden

Program

Outdoor water efficiency

Outdoor water use is one of the largest end uses of water in Sydney. The demand for water outdoors is more discretionary than indoor water use, providing greater potential to influence behaviour through education, marketing and other initiatives.

Sydney Water campaigns raised community awareness of outdoor water conservation practices. This is evident from the high level of customer interest shown at Sydney Water promotions, events and visits to the Sydney Water website. Customer research undertaken by Sydney Water also supports this.

Through the education and drought restriction promotion campaigns, customers were encouraged to adopt water efficient gardening and outdoor water use practices and to participate in the Rainwater Tank Rebate Program. An outline of the education activities and community events for 2007-08 are provided in Appendix 7.

Sydney Water offered a range of water efficient products for sale on the website and at community events to encourage behavioural

changes. Throughout the year, customers placed 248

2 orders for water efficient products,

sold at cost price through the Sydney Water website. The total value was about $9,129.

The website also contains the Sydney Water Plant Selector. This tool enables residents to choose plants suited to their local soil and weather conditions, helping them save water without restricting their choice of garden design.

The Smart Approved WaterMark scheme is Australia’s water saving labelling program for products and services that help reduce water use around the home. The National Water Commission has provided $1.3 million for the scheme through the Water Smart Australia Programme which was established by four associations closely involved with water use: the Water Services Association of Australia (WSAA); the Australian Water Association (AWA); Nursery & Garden Industry Australia and the Irrigation Association of Australia. The scheme complements the Water Efficiency Labelling and Standards (WELS) Scheme for indoor fittings and appliances (see section 4.8).

Sydney Water will continue implementing a range of education and community activities that promote water conservation and mandatory restriction measures while the drought continues. In September 2007, the NSW Government announced the long-term water saving rules to be introduced when drought restrictions are lifted. These long-term rules will remain in place regardless of the dam levels. Sydney Water will implement a promotion and education campaign to support these measures.

4.3 Business water efficiency

Every Drop Counts Business Program

The EDC Business Program is based on a continual improvement process, where key business managers commit to improving the management and use of drinking water to achieve best practice.

The non-residential customer sector used about 28% of the water supplied to customers in 2007-08 (Figure 3). This year, the EDC Business Program won the Government Water Award in the 2008 NSW Government Green Globe Awards. This award was for developing the Best Practice Guidelines for Water

2 Total from May 2007 to April 2008.


SW51 09/08

Conservation in Commercial Office Buildings and Shopping Centres. The EDC Business Program was also named as a finalist in the Banksia Awards-education category.

Table 5 lists performance highlights for the EDC Business Program.

Through the EDC Business Program, Sydney Water has been helping to improve water efficiency since 2001. In 2007-08 the EDC Business Program continued to work with large water using customers using over 80 KL/day through one-to-one partnerships. The program also implemented three projects aimed at accelerating water savings, including NSW Government Water Efficiency, Pilot Water Savings Fund and Enhanced Water Savings Fund.

In 2006, the EDC Business Program began working with small to medium water users using between 20-80 KL/day through targeted water efficiency projects. In 2007-08 the EDC Business Program implemented two projects including Business Water Saver Grant Pilot (more detail in section 4.7) and Smart Rinse.

The EDC Business Program has reached a total of 392 customers and savings now total about 13,838 ML/day.

One-to-one partnerships

This project involves working closely with large water using organisations in the manufacturing, commercial, hospitality, education, health and Government sectors. Over the years, this project

has been extensively refined to accommodate Sydney Water’s growing understanding of the specific water management needs of these customers. In 2007-08, 37 water efficiency audits and six reuse trials were completed at customer sites. There are currently 15 reuse trials in progress. This program has achieved savings of 12,487 ML/year.

Additionally, 92 customers completed water diagnostics in 2007-08. These diagnostics help customers identify ways to continually improve water management. The focus on improving water management has been a key reason for the success of the EDC Business Program in achieving sustainable water savings.

NSW Government water efficiency

The NSW Government has developed a policy on Sustainable Water and Energy Use. The target is to reduce overall government agency water use by 15% by 2010-11 (NSW Government 2006).

In 2007-08 the EDC Business Program audited 46 government owned sites. These audits identified 840 ML/year of water savings. In total this initiative has conducted 73 audits with identified savings of 1572 ML/year of which 520 ML/year has been implemented. Sydney Water will continue working with the various government agencies to implement the water saving projects.

Table 5: Performance highlights of the EDC Business Program and Schools Program


One to One Partnerships The program reached an outstanding milestone of 392 members.

NSW Government Efficiency 73 audits have been completed at government owned sites.

EDC in Schools 41 schools have a monitoring system installed to detect leaks.

Rainwater Tank in Schools Rebate 289 schools have received rebates.


SW51 09/08

Pilot Water Savings Fund

This fund was introduced to provide NSW Government organisations with grants for projects to achieve sustainable water savings of more than five kilolitres a day.

Twenty five projects were funded. Of those, 24 have been completed and water savings equivalent to 571 ML/year have been achieved. This program will not continue beyond 2007-08. In future, similar projects will be able to apply for funding through NSW Government funding programs.

Smart Rinse

After working with customers in the hospitality industry, the EDC Business Program identified that using low flow pre-rinse spray valves in commercial kitchens was a good opportunity for businesses to save water.

This program involves replacing existing pre-rinse spray valves, that use about 11 litres a minute, with low flow valves that use only six litres a minute and which have a more targeted spray pattern to improve efficiency. The program is targeting 3,250 customers and is expected to achieve savings of 956 ML/year by June 2011. The pilot was undertaken in 2006-07 and the full program was rolled out in 2007-08. In the full program, 1,028 valves were installed, achieving water savings of 260 ML/year.

EDC Business Program initiatives

A range of initiatives supported the EDC Business Program including:

� the 2007 EDC Business Program Water Conservation Awards recognised companies and individuals that showed leadership in water efficiency in 2007-08. Awards were given to organisations for largest volume reduction, highest percentage reduction, highest percentage key performance indicator (KPI) reduction, innovation and sustainable practices and processes. Another 15 individuals were recognised for their personal commitment to water efficiency.

� producing the industry water conservation magazine ‘The Conserver’, which showcases water efficiency success stories.

� creation of co-branded posters that feature a selection of water conservation messages for display in workplace kitchens and bathrooms. Business partners attach their company logo and a contact number to report leaks in the work place.

� developing a web based application that enables EDC Business program staff to analyse, track, monitor and report on water saving initiatives achieved by customers participating in the program. Customers can track their progress through the program and can access current and historical water use data from Sydney Water's billing system. The website is linked to monitoring data, where available, so that customers and Sydney Water can view water use in near real time basis.

4.4 School programs

Two water conservation programs specifically target schools - Every Drop Counts (EDC) in Schools and the Rainwater Tanks in Schools Rebate.

EDC In Schools

EDC in Schools is a collaborative program between Sydney Water and the Department of Education and Training (DET).

The program provides:

� access to education material and teacher professional development to support water efficiency and develop water responsible citizenship in the school.

� water monitoring and alarm systems in 40 selected schools each year. The target schools are high water using schools and those making water efficiency a priority.

� materials to help schools identify leaks by regularly monitoring water use through water meter readings.

Throughout 2007-08, 151 schools have received resources and support. The water monitoring and alarm systems and teacher professional development was launched in January 2008. Forty one schools have had the monitoring system installed and 49 have received professional development. It is estimated that savings of 102 ML/year have been achieved.


SW51 09/08

School students doing a water audit as part of the EDC in

Schools Program

Rainwater Tanks in Schools

Sydney Water’s Rainwater Tanks in Schools Rebate was introduced as an extension of the successful Rainwater Tanks Rebate Program for residential properties. The program offers schools a rebate of up to $2,500 toward the cost of buying and installing a rainwater tank in the school and connecting to toilets or a fixed irrigation system. To receive a rebate, a school must also have completed a water conservation education program with students in the past two years or have committed to completing one in the next 12 months. This program includes conducting a water audit and developing a school water conservation plan.

Since its introduction in April 2004, 289 schools have received a rebate, including 29 in 2007-08. It is estimated that savings of 43 ML/year have been achieved. The program will continue until June 2012.

4.5 Leak reduction

Sydney has around 21,000 kilometres of pipes which carry water to customers. Like all water pipe networks around the world, this system has leaks and breaks. Leaks can be caused by many things, including deterioration of joints and fittings and cracks in the pipes caused by movement or pressure changes.

Sydney Water’s Leak Reduction Program commenced in 1999 as a key component of the strategy to reach the Operating Licence water conservation targets. Table 6 lists performance highlights for leak programs.

To develop an appropriate target for the Leak Reduction Program, Sydney Water has studied the economic level of leakage (ELL). In 2004, Sydney Water completed the first formalised examination of its economic level of leakage, following the process in the Best Practice Principles in the Economic Level of Leakage Calculation report published by the UK Water Industry Regulator, Office of Water Services, in 2002. Sydney Water’s ELL was estimated to be 105 ML/day.

This value of 105 ML/day has been incorporated in the 2005-10 Operating Licence (clause 4.11.1). The licence states “Sydney Water must ensure that, by 30 June 2009, the amount of water leakage from its drinking water supply system does not exceed 105 ML/day”.

Sydney Water has used the water balance approach (see Appendix 8) to determine the level of leakage from the drinking water system.

Table 6: Performance highlights of leak detection programs


Active leak detection and repair 1,235 pipe leaks and 4,589 leaks on valves, fittings and service connections were

detected and repaired in 2007-08.

Flow meters 90 flow meters have been installed.


SW51 09/08

The Leak Reduction Program has reduced leaks from over 180 ML/d to 117 ML/day or less than 9% of supply since the beginning of the program. This is internationally recognised as a good result. Reducing leaks further becomes increasingly difficult and uneconomic.

The Leak Reduction Program consists of a number of elements that will contribute to meeting the leak reduction target:

� Active leak detection and repair.

� Pressure management to reduce high pressure areas.

� Improved response time to main breaks.

� Improved flow metering.

In addition, Sydney Water has a water mains renewal program that ensures the integrity and performance of the water system.

Active Leak Detection and Repair

The Active Leak Detection Program involves acoustically scanning for leaks and repairing identified leaks. This program progressively targets Sydney Water’s supply zones on an assessed priority basis. Leaks are found on water mains, connections to the mains, and on fittings such as hydrants and valves.

Sydney Water completed leak detection and repairs in 137 supply zones during 2007-08, totalling 19,600 km of mains. Sydney Water is continuing to inspect over 18,000 km of pipe a year. To maximise leak reduction, leak inspection is targeted in areas of highest leaks. In 2007-08, this program achieved savings of almost 22,000 ML/year. It is estimated that savings of almost 24,000 ML/year will be achieved by June 2009. Sydney Water will continue the program to maintain the leak reduction achieved.

Pressure Management Program

The Pressure Management Program involves installing pressure reducing valves in high-pressure areas to reduce system pressure and hence system leaks and main breaks.

Sydney Water expects to implement about 140 pressure reduction schemes between 2005 and 2011. At June 2008, 14 schemes have been established, with three having had full pressure reduction. It is estimated that savings of over 800 ML/year have been achieved from this program so far. When the 140 installed schemes

are reduced to the intended pressure levels, the total savings are estimated at over 10,000 ML/year.

Improved leak/break response time

Sydney Water is required by Clause 4.133 of the

Operating Licence to meet specified response times for water main breaks and leaks. This reduces water loss from leaks and breaks. It is estimated that savings of over 700 ML/year are being achieved by this initiative.

Flow meters

Accurate measurement of flows into supply zones is important as the leak levels reduce and leaks become harder to find. In conjunction with other measurement devices, flow meters provide information on the relative level of leaks across the network. This enables leak investigation teams that scan the pipes acoustically searching to target potential leaks.

Sydney Water has developed a flow meter program to target leak reduction. By June 2008, 61 new flow meters were installed and 29 existing flow meters were renewed.

4.6 Water recycling

The combination of population pressures, climate change and increasing environmental awareness by the broader community have led to water recycling becoming a key component of securing Sydney’s water supply in the future. Recycled water contributes to drinking water savings where it substitutes for an existing or future drinking water demand.

As part of the NSW Government’s 2006 Metropolitan Water Plan, 70 GL of water will be recycled by 2015. Sydney Water is working with relevant government agencies to deliver many of the water recycling projects identified in the Plan. Sydney Water is also supporting a number of emerging sewer mining and stormwater harvesting schemes being planned or developed by local councils, businesses and developers. Table 7 lists the performance highlights for recycled water projects in 2007-08.

This section outlines Sydney Water’s current and future recycled water initiatives that substitute drinking water demand.

3 Clause 4.13.4 of the Operating Licence recognises that 100% compliance within 5 days

is not possible. All exceptions are reported as required by this clause.


SW51 09/08

Current recycling

Sydney Water operates a range of different recycled water schemes (listed in Appendix 9). Six of these schemes substitute demand from drinking water storages. Along with the Sydney Olympic Park Authority's (SOPA) and Botany Orica recycled water scheme, they have saved an estimated 11,397 ML in 2007-08. Schemes that contribute to water savings include the residential dual reticulation scheme at Rouse Hill, BlueScope Steel, golf course irrigation schemes at Dunheved and Liverpool golf courses and a playing field irrigation scheme at Penrith. Sydney Water STPs have also continued to reduce their drinking water use (Table 8). Significant gains in recycling were achieved in 2007-08 with the continuation of the major BlueScope Steel scheme savings 6,652 ML/year.

Over 17,000 homes have now connected to stage one of the Rouse Hill recycling scheme, supplying around 1.4 GL of recycled water a year to flush toilets, water gardens, wash cars and other outdoor uses.

The Wollongong Recycled Water Plant is producing up to 20 ML of high quality recycled water each day for BlueScope Steel.

Construction of the recycled water pipeline from West Camden STP to Elizabeth Macarthur Agricultural Institute is now complete. Pipeline testing is in progress and over one million litres of recycled water is being delivered each day. Once the pipeline is fully operational, it will deliver up to five million litres of recycled water each day. Further details on current recycling schemes are provided in Appendix 9.

Future recycling

Sydney Water will continue to work to deliver the major recycled water initiatives identified in the 2006 Metropolitan Water Plan. These include recycling initiatives for homes, industry, irrigation and replacement of flow releases from Warragamba Dam to the Hawkesbury Nepean River.

Recycling for homes

Sydney Water is in the process of expanding the Rouse Hill Recycled Water Plant. Ultimately, this plant will have the capacity to service 36,000 new homes in Rouse Hill and surrounding areas.

Construction has commenced for the Hoxton Park Recycled Water Scheme and should be completed in 2011-12. By 2015, this scheme will supply 2.1 ML/day of recycled water to around 13,000 new homes. Recycled water for the scheme will come from a recycled water plant being built at the existing Glenfield STP and will be delivered to new land release areas across the Liverpool and Campbelltown local government areas.

A recycled water scheme providing water primarily for residential use is also under development at Ropes Crossing near St Marys. This scheme should be completed in 2011-12 and will provide recycled water to 1,800 new residential lots for toilet flushing and outdoor use. Recycled water will also be used for open space irrigation and in industrial areas.

Table 7: Performance highlights of recycling programs


Rouse Hill Over 17,000 homes connected. The Rouse Hill Recycled Water Plant is also about to

double in size.

Rosehill/ Camellia Scheme to be completed in 2010-11. This scheme will service seven industrial

customers.

Hoxton Park Recycled Water

Scheme Construction has commenced and is expected to be complete in 2011-12.

North West Early Release

Precincts

Environmental Assessment has been displayed and tender for the Design and Construct

has been released.


SW51 09/08

Table 8: Drinking water savings in 2007-08 for recycled water schemes since 1999

Scheme Type of use Source (STP) Scheme in

operation

Drinking water

savings (ML/year)

Sydney Water STPs Industrial Local Various 2,022

Dunheved Golf Irrigation St Marys 2000 3

Liverpool Golf Irrigation Liverpool 2004 18

Penrith Stage 1 Irrigation Penrith 2007 4

Rouse Hill Stage 1 & 2 Residential Rouse Hill 2001 1,402

Wollongong Stage 1 (BlueScope

Steel)

Industrial Wollongong 2006 6,652

Botany Orica (non Sydney Water

scheme)

Industrial Ground Water 2007 529

SOPA (non Sydney Water

scheme)

Residential/irrigation WRAMS/\Sewer mining 2000 767

Total 11,397

Sydney Water, with government agencies, has planned for the construction and operation of the Western Sydney Recycled Water Initiative. One component of this initiative is to provide recycled water via dual reticulation to around 180,000 new homes to be built in new suburbs in Sydney's north west and south west growth centres. The Environmental Assessment for the early release precinct of the north west growth centre was placed on public exhibition from February to April 2008. The tender for Design and Construct has also been released.

Recycled water being used at a residential property

Recycling for industry and irrigation

The Rosehill/ Camellia Recycled Water Project will serve industrial customers in the Smithfield and Camellia area. This scheme will provide

savings up to 12 ML/day of drinking water by 2010-11. The scheme will also provide water for irrigation.

The Hoxton Park Recycled Water Scheme will provide recycled water to 185 hectares of new industrial development in the Hoxton Park area. This scheme is due for completion in 2013-14 and should provide 2 ML/day of recycled water.

The Wollongong Recycled Water Scheme that currently provides recycled water to BlueScope Steel will service additional industrial and irrigation demands. Wollongong stage 2 will increase recycled water use by 1.6 ML/day and is planned for commissioning in 2008-09. Stage 3 is also planned and will produce additional reverse osmosis quality recycled water for BlueScope Steel and other industrial customers. Discussions are being held between Sydney Water and BlueScope Steel on this scheme.

A recycled water scheme at Ropes Crossing near St Marys will also provide recycled water for open space irrigation and in some industrial areas in the new Ropes Crossing and Dunheved industrial areas.

Recycling for the Environment

Another component of the Western Sydney Recycled Water Initiative is the Replacement Flows project. This scheme will substitute up to 50 ML/day of drinking water currently being released each year from Warragamba Dam into the Hawkesbury-Nepean River with highly


SW51 09/08

treated recycled water. This is a major element of the Western Sydney Recycled Water Initiative outlined in the 2006 Metropolitan Water Plan. The project will help meet Sydney’s water needs by retaining the dam water that would otherwise be released to the Hawkesbury-Nepean River while also maintaining river health. It does not contribute to the Operating Licence target as the target has been defined in terms of customer use. However, it does contribute to ensuring Sydney's long term water supply-demand balance.

Recycled water used to irrigate a Golf Course

Recycled Water Grid

In February 2007, the NSW Premier announced the development of a recycled water grid for Sydney to provide recycled water to new homes and industries across the Sydney metropolitan area. Developing such a grid would enable recycled water use to increase to about 100 GL a year over the next 25 to 30 years. Sydney Water’s Liverpool to Ashfield Pipeline will be the central carrier for the grid.

Sewer mining

The NSW Government is facilitating the development of smaller sewer mining and stormwater harvesting schemes. Many of these schemes are receiving funding from the Climate Change Fund (former Water Savings Fund). Sydney Water has issued guidelines that detail approvals required for a sewer mining proposal. Sydney Water developed a standard sewer mining agreement and it is available on the Sydney Water website.

Sydney Water has processed in excess of 30 sewer mining applications, but does not control all the factors that determine whether or not these proposals proceed.

In April 2008 a sewer mining project was commissioned at Pennant Hills Golf Club. The club will be tapping into Sydney Water's sewer to produce recycled water to irrigate its golf course. The club will save up to 100 ML of drinking water each year and received $1,100,000 funding from the former Water Savings Fund.

Kogarah City Council and Sydney Water signed a sewer mining agreement in February 2008. Kogarah Council was the first council in Sydney to pilot sewer mining and recycling treated wastewater to irrigate its parks, playing fields and the Beverley Park Golf Course. This project will recycle 125 ML of wastewater each year.

Caltex and Koppers at Kurnell accepted an offer of more than $5 million from the former Water Savings Fund for a sewer mining project. Treated effluent will be extracted from the Cronulla STP outfall pipeline and further treated for industrial uses. This project could save up to 2,000 ML of water a year.

The University of Technology, Sydney (UTS) has also been offered funding from the Climate Change Fund - NSW Green Business Program for a sewer mining project. Wastewater will be recycled from the central plant cooling tower into the toilet flushing system throughout a 28 storey building complex. This project could save 5 ML of water a year.

Macquarie University was offered funding of $350,000 funding from the former Water Savings Fund for a sewer mining project. Wastewater will be extracted from the sewer and further treated to irrigate sporting fields. This project could save up to 50 ML of water a year.


SW51 09/08

A development near Sydney’s casino known as Workplace 6 has a sewer mining facility under construction which should save 16 ML/ year. Another is under construction at Blackmore’s new manufacturing site at Warriewood which is set to save up to 32 ML/year.

Others who are progressing sewer mining proposals include Ku-Ring-Gai Council (100 ML/year), Canada Bay Council (180 ML/year), Canterbury Racecourse (180 ML/year) and City Of Sydney Council, Cook & Phillip and Hyde Parks (100 ML/year).

Stormwater harvesting

Stormwater harvesting projects in Sydney are primarily developed and managed by local councils. The Climate Change Fund (former Water Savings Fund) has supported 28 stormwater harvesting projects in the Sydney region to the value of over $7.4 million.

Sydney Water is supportive of such stormwater harvesting projects and is assisting local councils across the metropolitan area to investigate stormwater reuse opportunities.

Sydney Water has recently established a stormwater harvesting agreement allowing external parties to harvest stormwater from Sydney Water’s stormwater system. There are currently a number of harvesting agreements being negotiated with local councils in the metropolitan area.

4.7 Pilot programs

Sydney Water trialled a number of pilot programs in 2007-08. These pilot programs target water savings in residential and business use as well as leaks.

Expanded WaterFix programs includes a range of smaller projects encouraging customers to take up the WaterFix offer to reduce water use within the home and garden. These include replacing taps and trigger nozzles in the garden, WaterFix in high-rise residential units, cross selling and increased marketing of the WaterFix Program.

The Multi-Unit Metering Program is investigating individual metering and usage billing for new multi-unit buildings. The Multi-Unit Metering Program initially involved trial installations to investigate the technical issues, costs to install and monitor meter readings, and billing issues. Meters have been installed in two new multi-unit

buildings at Rhodes and Hornsby to separately trial manual and remote meter reading systems. Metering data is currently being collected.

The Business Water Saver Grant project involved awarding grants between $2,000 and $20,000 to businesses categorised as Small to Medium Water Users (SMWU) (20-80KL/day) to save 135 ML/year. The aim of the project is to help businesses implement practical and cost-effective measures to reduce water use. The pilot provided 38 grants across the hospitality, commercial and manufacturing sectors in the Sydney region. Grants were provided to install water efficient equipment in areas such as amenities, kitchens, irrigation systems, or business specific technologies. The pilot is being extended in 2008-09.

Leak detection on large pipes is expensive and technically difficult. In 2006-07 the 'SAHARA' technology was successfully trialled. In 2007-08 trials started on four other new technologies. Results will be known in early 2008-09.

Sydney Water has commenced investigations on new outdoor residential programs in the areas of remote sensing irrigation, irrigation, maintenance and design, accredited garden centres and reducing water loss from pools. These investigations will continue in 2008-09.

4.8 Regulatory measures

As well as taking direct action to reduce water demand, Sydney Water has helped develop and implement a range of regulatory processes to support the sustainable use of water resources.

Some forms of regulation are highly effective in reducing water demand at a relatively low cost to the community. Sydney Water is a service provider working within a regulatory framework and participates fully in reviews by regulators, including:

� pricing reforms

� ongoing outdoor water saving measures appliance rating, labelling and minimum performance standards

� urban planning regulation – BASIX.

In addition to these measures, the NSW Government is investigating a range of regulatory measures for commercial and industrial premises, and possible measures to provide information on a dwelling’s water efficiency when it is sold.


SW51 09/08

Pricing reforms

IPART has set Sydney Water prices from 2008-09 to 2011-12. The recent price increase includes both water and sewer services. In 2008-09 there will be a 17% rise, plus CPI. In the next year, 2009-10, the price rise will be 6.3%, plus CPI, and by 2011-12 the total increase will be 30% plus CPI.

The impacts of the new pricing regime on water use, particularly outdoor water use are difficult to measure during a drought when restrictions are in place. Even after the drought ends, ongoing rules and restrictions may make it difficult to differentiate the impact of price. For this reason, savings from pricing are jointly reported with savings for outdoor water conservation measures (see section 4.2).

In addition to changing the price structure, the NSW Government and Sydney Water are investigating mechanisms to increase the number of properties that receive pricing signals through individual metering. For example, few strata units and flats are individually metered. As a consequence, most unit owners in multi-residential developments pay for a share of the building’s total water use, rather than paying for their unit’s actual use. Sydney Water’s multi-unit metering trial (see section 4.7) is one measure to address this issue.

National Water Conservation Rating and Labelling Scheme

The Water Efficiency Labelling and Standards (WELS) scheme is a national scheme that involves mandatory ratings and labelling for a range of appliances and fittings, and developing minimum performance standards for these products. The products covered by the scheme are clothes washing machines, dishwashers, showers, taps and flow controllers, toilet equipment and urinals. The water efficiency scheme is managed by the Australian Government’s Department of the Environment, Water, Heritage and the Arts - the same government department that has responsibility for the national energy labelling scheme.

The mandatory standards are currently in place for toilets and it is anticipated that mandatory standards for other products will be introduced in 2009-10.

Sydney Water estimated savings of 1,774 ML/year have been achieved to the end of June

2008 through consumers purchasing more efficient appliances. The WELS scheme should increase the availability and market share of more efficient appliances, leading to increased savings in future years. Savings of 8,813 ML/year are expected by 2010-11.

Building Sustainability Index (BASIX)

The NSW Government introduced BASIX, the Building Sustainability Index, in 2004. BASIX is a state-wide planning policy that ensures new residential dwellings are designed to use less drinking water and are responsible for fewer greenhouse gas emissions by setting energy and water reduction targets.

BASIX for new homes uses a NSW benchmark to set a reduction target. The water benchmark equals 90,337 litres per person a year and is based on average NSW per person water use in 2002-03. From this benchmark, a reduction target of 40% is required for all new homes. There are a range of options to meet the BASIX reduction target, including using recycled water, rainwater tanks, water efficient devices and water efficient appliances.

BASIX for alterations and additions differs from BASIX for new homes in that there is no set reduction target. Instead, the scheme sets specific requirements for building work, based on the type of project. These requirements have some flexibility and apply only to the section of the home that is being renovated.

Sydney Water has provided data and advice to the Department of Planning to develop BASIX. Sydney Water and the Department of Planning are currently progressing a joint monitoring and evaluation program for BASIX. The monitoring program will assess the performance of BASIX compliant homes against reduction targets and inform the BASIX policy, assumptions and calculations.

It is estimated that the BASIX program is now saving about 2,854 ML/year, and that this will increase to 10,258 ML/year by 2010-11.

4.9 Externally managed projects

Other water efficiency projects or initiatives currently being managed by external government agencies include:

� Water Savings Action Plans


SW51 09/08

� Climate Change Fund

� Enhanced Water Savings Fund

� National Rainwater and Greywater Initiative

� Australian Government Water Fund- Community Water Grants Programme.

Water Savings Action Plans

240 business and 40 government sites using more than 50 ML of water a year, and all 44 councils in Sydney, Blue Mountains and the Illawarra are required to prepare Water Savings Action Plans. The NSW Government expects that these high water users will implement cost effective actions to realise water and cost savings and contribute to more sustainable operations. It is expected that organisations that implement Water Savings Action Plans, will achieve average water savings of 20%. In total, 203 of the 240 sites required to develop plans are represented in the EDC Business Program, as are all 44 councils and 39 of the 40 government sites.

Climate Change Fund

As of 1 July 2007, the Climate Change Fund replaced the Water Savings Fund. The Water Savings Fund was initially established in 2005 to provide $30 million a year for four years to deliver significant water savings across Sydney. Businesses, councils and NSW Government agencies were able to apply to the fund for monies to support water saving initiatives. Many of the projects were identified through Sydney Water's EDC Business Program. An additional $10 million was allocated to the Water Savings Fund in 2006 to fund applications specifically from large water users.

The then Department of Energy, Utilities and Sustainability (DEUS) administered the Water Savings Fund. This department was abolished in April 2007, and the responsibility for administering the Water Savings Fund was transferred to Department of Environment and Climate Change (DECC).

The Climate Change Fund incorporates the expanded Water and Energy Savings Funds, the Climate Action Grants Program and some funding from the Environmental Trust. It will total $340 million over five years (www.environment.nsw.gov.au).

Applications for the Climate Change Fund for the Sydney region closed in December 2007.

Eight water saving projects were funded under the Green Business Program worth over $2 million dollars. It is estimated that these projects will save 164 ML of drinking water (www.environment.nsw.gov.au).

Enhanced Water Savings Fund

The Department of Environment and Climate Change manages the Water Savings Fund. This fund was used to provide a subsidy to eligible businesses to implement water savings identified in the EDC Business Program.

To support this initiative the EDC Business Program conducted 23 reuse investigations and three reuse trials at large water using customer sites. This program will not continue in 2008-09.

National Rainwater and Greywater Initiative

As part of the National Water Plan, Water for the Future, the NSW Government is delivering the $250 million National Rainwater and Greywater Initiatives to help people use water efficiently.

The National Rainwater and Greywater Initiative will help households and surf lifesaving clubs save drinking water by installing rainwater tanks and greywater systems.

The Australian Government is providing rebates of up to $500 for households to install rainwater tanks or greywater systems and grants to surf lifesaving clubs of up to $10,000 to install a rainwater tank or undertake a larger water saving project (www.environment.gov.au).

Rainwater tank in a residential property


SW51 09/08

Australian Government Water Fund - Community Water Grants Programme

The Australian Government’s Community Water Grants Programme offers funding to help local community organisations save, recycle or improve the health of their local water resources.

Grants are available for projects related to water saving and efficiency, water recycling and water treatment by improving surface and groundwater health. Community Water Grants, is one of the three national program in the $2 billion Australian Government Water Fund (www.nwc.gov.au).

4.10 Community education

A key component of all Sydney Water’s water conservation initiatives is changing community attitudes and behaviours towards water conservation. During 2007-08, both broad based and targeted water conservation education activities were delivered. These included:

� a campaign at the beginning of summer to remind the community that level 3 restrictions were still in place.

� a water conservation campaign in January and February that aimed to educate customers about simple ways to save water inside the home. The television, print and radio advertisements focused on the two biggest users of household water (showers and toilets) and provided easy water saving tips for both of these areas. Water saving behaviours such as taking shorter showers and using the half flush button were at very high levels throughout the campaign.

A pilot water conservation campaign tailored to Arabic and Chinese communities was rolled out in March and April through Arabic and Chinese radio, press and online. Campaign results showed a positive impact on knowledge, attitudes, beliefs and actions from the community.

In September 2007, Sydney Water ran a recycled water campaign to educate the community about recycling and its benefits, and to provide information on key recycled water projects. Campaign results showed that 54% of people were aware of the ads.

Multi-faceted campaigns to encourage participation in our water conservation programs

and to further promote water saving messages included:

� a small scale WaterFix campaign from January – March testing direct mail, radio, online, press advertisements and inserts. This campaign saw almost 3,000 visitors to the WaterFix pages on Sydney Water’s website. There was also an increase in WaterFix awareness of almost nine per cent.

� a small scale pilot at local council level for Love Your Garden including direct mail, press advertisements and inserts.

Further details on individual campaigns are contained in Appendix 7.

4.11 Research and development activities

Sydney Water carried out a range of water conservation research and development activities in 2007-08. The key areas for water efficiency research included:

� assessing the reliability of existing data and baseline assumptions of water use

� identifying and developing new options to reduce drinking demand, including alternative servicing solutions

� improving understanding of customer behaviours about the impacts of future water efficiency initiatives

� understanding the impacts of climate change on supply and demand

� reviewing the performance of water conservation projects.

This section reports on some of the highlights and significant projects completed this year relevant to the themes outlined above.

Measuring baseline flows in residential properties

A study looking at leakage in 200 residential properties is underway. The study uses Tiny Tag data loggers which are placed on residential water meters for short periods (10 days) to record water use at frequent intervals of 1-2 minutes. The data will be used to detect household leaks. This information will provide a more accurate measure of baseline flows to forecast residential demands for water.


SW51 09/08

Identifying alternative water servicing options

A research project into the use of recycled water in washing machines was completed this year. The study involved assessing the impacts of using recycled water from both a public health and washing efficiency perspective. Key findings are that recycled water is not a human health concern when used in washing machines. The study also found that detergents are more likely to impact washing efficiency and machine durability than recycled water would.

Improving understanding of customer behaviours

Two projects target improved understanding of customer behaviour - the smart metering trial and the small to medium non-residential water users survey.

The smart metering trial is a pilot program to test the effectiveness of using smart meters in residential properties. The meters include a data logger, which is fitted to the customer's water meter, and an in-house display which can inform the customer about current water use. The purpose of the trial is to observe customer behaviour through in-house displays and to record household leaks through more frequent collection of water use data. The trial will run over 12-18 months and will involve about 500 residential properties.

Sydney Water commissioned the survey of small to medium non-residential water users to develop a greater understanding of their water using practises, as well as drivers and barriers for water efficiency and benchmarked water use.

Understanding the impacts of climate change on supply and demand

Sydney Water is participating in a climate change study with the Department of Water and Energy (DWE), the Sydney Catchment (SCA) Authority, DECC, Commonwealth Scientific and Industrial Research Organisation (CSIRO), University of NSW, and the Department of Climate Change (formerly the Australian Greenhouse Office).

This study models future climate change scenarios and assesses the potential impacts of climate change on water demand in response to various temperature and rainfall scenarios. This study was commissioned in 2006 and is planned to be complete by the end of 2008.

Sydney Water is also undertaking collaborative research in conjunction with the Sydney Metropolitan Catchment Management Authority, CSIRO and others to investigate the impacts of climate change on the intensity, frequency and duration of rainfall to more accurately predict future water supply and demand in Western Sydney.

Collaborative research

Sydney Water has collaborative research agreements in place with a number of industry associations and centres of excellence as shown in Table 9. This plays a key role in helping Sydney Water access a broad research portfolio. This investment gives Sydney Water access to external research capabilities and important links to national and international R&D developments.

Several projects within Sydney Water’s R&D portfolio attract significant external co-funding from industry partners, universities, centres of excellence and other State and Federal sources such as the Australian Research Council.

Program reviews

An independent review of Sydney Water’s Every Drop Counts (EDC) Business Program found that:

� the methodology used by Sydney Water to account for water savings under the EDC program was considered to be robust

� Sydney Water is achieving the drinking water savings claimed from the program.

Table 9: Collaborative research

Research agencies Areas of focus

Water Quality Research

Australia

Water treatment, quality and

public health

Water Services

Association of Australia

(WSAA)

Water quality, public health,

water and energy efficiency

and climate change

American Water Works

Association Research

Foundation (AWWARF)

Water quality and public

health and climate change

Water Environment

Research Foundation

(WERF)

Wastewater treatment, quality

and reuse

Water Filtration Plant

BOO Partners

Water quality, treatment and

new technologies


SW51 09/08

5 Water Conservation Strategy 2008-11

5.1 Introduction

Sydney Water’s 2008-2011 Water Conservation Strategy has been developed to meet the Operating Licence water conservation target, 2006 Metropolitan Water Plan and NSW State Plan outcomes. The strategy includes:

� continuation of existing programs

� further investigation and implementation of recycled water programs

� piloting, developing and implementing new water conservation programs.

To ensure the strategy is successfully implemented, it is supported by:

� research and development projects aimed at better understanding demand

� program reviews to optimise existing programs

� pilots to assess potential new water conservation programs

� an ongoing review of the demand forecast to ensure it is as accurate as possible.

5.2 Planning process

The Water Conservation Strategy is developed and reviewed using an adaptive management process. The process involves a cycle of reviewing progress towards the Operating Licence target and the effectiveness of programs being implemented as part of the strategy. The process is informed and supported by customer feedback and a range of research and development projects. Figure 7 outlines the planning process.

The first step in the process is to review the strategy in the context of drivers such as the 2006 Metropolitan Water Plan, Operating Licence and the NSW State Plan.

Program savings, costs and associated assumptions are reviewed and a 2010-11 revised forecast will be developed to determine how Sydney Water is tracking against the target.

Review of drivers/assumptions

Operating Licence,Metropolitan Water Plan,

NSW State Plan, performance of programs

forecast assumptions

Revise demand forecastBaseline forecast,

forecast program savings,

demand forecast

Assess progress against

Operating Licence target

Refine programOptimise existing programs,

assessment and implementation of new water saving measures

Re

se

arc

h a

nd

De

ve

lop

me

nt:

* Robustn

ess a

nd re

liability

of d

ata

and a

ssu

mptio

ns

* Unders

tandin

g fa

cto

rs w

hich

influ

ence d

em

and

* Exte

rnal s

cannin

g to

identify

and d

evelo

p p

ote

ntia

l new

wate

r savin

g m

easure

s

* Custo

mer re

searc

h

* Impact o

f clim

ate

change

Documentation of revised

strategyDevelop, implement and report

Figure 7: Planning Process

5.3 Demand forecasting

Demand is forecast by subtracting, from a baseline, estimated savings from existing programs, proposed programs and savings from restrictions.

In 2007-08, total demand was 481,701 ML or 306 litres per person per day. However, Sydney is currently in level 3 water restrictions and had these restrictions not been in place, water use would have been significantly higher at 380 litres per person per day.

Water use is expected to increase when temporary level 3 restrictions are lifted. However, the extent to which water saving behaviours are retained by customers and over what period of time is difficult to predict.


SW51 09/08

Figure 8 Contribution of program areas to meeting the Operating Licence target

In September 2007, the NSW Government announced long term water savings rules would be put in place once level 3 restrictions are lifted. These long term rules will remain in place regardless of the dam levels. It has not been decided when restrictions will be lifted, however, for this report it has been assumed that temporary restrictions will be lifted in the summer of 2009/10. From this time, there will be a gradual increase in water use as households adapt to the lifting of restrictions. It is estimated that there will be up to a 30% retention of savings achieved by level 3 water restriction savings at June 2011 (refer to Figure 8)

Baseline forecast The baseline demand forecast estimates the trend of average yearly demand excluding savings from water efficiency programs and restrictions. It represents a ‘do nothing’ forecast, assuming the observed historical trends would continue into the future. The baseline forecast is used as a benchmark for planning, options assessment and evaluation of program effectiveness. In September 2003, NSW Government agencies agreed on a baseline forecast for the 2006 Metropolitan Water Plan, by applying average water use of 426 litres per person per day to current Department of Planning projections of population growth

adjusted to Sydney Water’s supply area.

The baseline demand estimate has been reviewed by carrying out a detailed analysis of sectoral baseline demands. The review was limited by the fact that only restricted demand data was available from November 2002. The review indicated that the 426 litres per person per day baseline is a reasonable estimate. On this basis it will be used until more data becomes available after restrictions are lifted.

Sydney Water uses its end use model to assess the impact on demand of different water efficiency options. These impacts are then compared against the agreed baseline.

Water saving assumptions The water saving assumptions for each of the major water efficiency programs are listed in Appendix 10.

Where possible, assumptions are based on measured consumption from existing programs. Water saving assumptions about WaterFix, the business efficiency program, and leak reduction are based on quantified savings gained through the implementation of the program. Sydney Water measures the outcomes of these programs and updates saving assumptions as new information becomes available.


SW51 09/08

Where recycled water schemes substitute drinking water use, savings are based on existing consumption data for the relevant customers or similar projects (eg. Rouse Hill data is used for dual reticulation projects).

Where measured data is not available, conservative assumptions are made based on available research. Projected savings include programs that are already being implemented and those that are being planned. The latter have higher margins of uncertainty relating to timing, costs and water savings.

Option interaction Realised savings may be less than estimated because some options may be competing for water savings from the same market sector or customer group.

Sydney Water minimises this issue by targeting discrete customer segments to avoid overlap. Where this is not possible, and there is a risk of possible interaction between selected options, water saving assumptions are reduced accordingly.

5.4 Sensitivity analysis

A sensitivity analysis was done to gain an indication of the magnitude of uncertainty associated with the water savings for the demand management, leak reduction and recycled water programs.

The method used for the sensitivity analysis included:

� a review of past assumptions. Analysing programs to identify the difference between planned and actual water savings

� forecasting high, medium and low water savings for each program to 2010-11.

Preliminary results indicate that water saving forecasts for mature programs (four year or more) have an error of 10% or less. Water savings forecasts for immature programs (three years or less) typically have an error of 20-100%.

Forecast high, medium and low water savings to 2010-11 were based on experience from programs and customer feedback. The sensitivity analysis on the water savings for each program is detailed in Appendix 11.

5.5 Program evaluation and ranking

When a gap between forecast demand and the target is identified, new measures can be developed and implemented if required. Developing new programs first involves scanning both internally and externally for potential programs. Investigations, pilots and trials are then undertaken for measures that appear to have good potential. These processes enable Sydney Water to quickly deploy new programs if required.

Sydney Water then evaluates both new and existing programs. The evaluation involves preliminary screening of the programs for social impacts followed by a multi-criteria analysis (MCA) of all the programs. MCA involves developing a ranked list of options (programs), based on their performance against a number of criteria. The criteria used to evaluate the programs include utility levelised cost, implementation certainty, magnitude of drinking water savings and environmental benefit. Further information on the criteria and evaluation procedures are provided in Appendix 12.

5.6 Programs to be delivered in 2008-09

New programs to be implemented in 2008-09 include:

� revised washing machine rebate was extended from 1 August 2008. The minimum water efficiency rating for washing machines qualifying for the rebate will be 4½ star

� a single flush toilet program will be delivered in 2008-09 following a successful trial in 2006-07. This involves a subsidised service for a qualified plumber to replace single flush toilets in residential properties with a water efficient dual flush model

� monitoring the top 100 businesses by installing data loggers on water meters to track water use at 100 high water using sites over the next two years to improve water use efficiencies

� BizFix (Business amenity retrofit) will be based on a 50/50 co-funding arrangement with participating businesses for the supply


SW51 09/08

and installation of flow restrictors and other cost effective hardware for use in amenities.

Pilot programs to be implemented in 2008-09 include:

� Business Water Saver Grant scheme- offering grants between $2,000 and $20,000 to small business owners to implement water efficient measures

� Commercial high rise project - a trained contractor to assess commercial buildings for water efficiency and leaks

� Spray nozzle retrofit - identifying businesses using spray nozzles where a retrofit would lead to significant water efficiencies.

� Small to Medium Water User Council Project - working closely with 10 councils to achieve water efficiencies in 40 small to medium water using businesses in each council area.

New water saving initiatives

A number of initiatives have been identified for further development and evaluation. These include pilots to:

� expand the Love Your Garden Program to address evaporation from pools, design and maintenance of irrigation systems and irrigation controllers

� to develop alternative servicing or decentralised servicing options. Sydney Water is working with developers, other agencies and research organisations on this initiative. This includes investigating on-site recycling in residential and commercial developments, potential for stormwater/rainwater use in infill developments and the quality of rainwater collected in urban areas to identify and clarify suitable uses.

The ‘Water Conservation and Restrictions Tracking’ project provides ongoing monitoring of consumer sentiment so that Sydney Water can refine and tailor its Water Conservation Strategy to best meet the needs of its customers.

5.7 Planned strategy to 2010-11

The programs that form Sydney Water’s

2008-11 Water Conservation Strategy are presented in Table 10 and Table 11. This strategy is expected to increase savings to around 142,253 ML of drinking water by 30 June 2011 at a cost to Sydney Water of over $650 million including contributions to the Climate Change Fund.

The strategy includes programs that target:

� the residential sector to improve water efficiency within the household and in the garden

� the business sector, including programs that help private and government business sectors reduce drinking water demand

� leaks from the distribution system, including active leak detection and pressure management programs

� recycled water substitution, including dual reticulation schemes for new growth areas and industrial recycled water projects.

A diversified strategy of programs that target different sectors will enable the 2010-11 water conservation target to be met in a timely and more risk averse manner. It will also ensure that particular sectors are not unfairly targeted.

Looking forward, all sectors are expected to contribute further to the water conservation target. The residential sector will continue to achieve savings through improvements to indoor and outdoor water efficiency. The Love Your Garden Program will be especially critical in reducing outdoor use during non-restricted periods. The EDC Business Program will continue to partner with businesses and government to improve water efficiency within the business sector and accelerate water savings achieved.

Pressure management schemes will be implemented over the coming three years to reduce the frequency of main breaks and further reduce leaks. Sydney Water will continue to actively detect leaks within the distribution system to improve and maintain the savings achieved to date.

Recycled water will increasingly contribute to drinking water savings, with major industrial recycled water schemes due to come online in the later years of the strategy. A number of dual reticulation schemes in new growth areas will also begin in the coming years, as well as the continued expansion of the Rouse Hill scheme.


SW51 09/08

5.8 Forecast water savings to 2010-11

Table 10: Forecast water savings 1 (ML/year)

Program 08-09 09-10 10-11

Residential

WaterFix (residential) 9,893 10,039 10,185

DIY water saving kits 984 1,056 1,129

Washing Machine Rebate2 2,836 3,323 3,323

Rainwater Tank Rebate 2,181 2,494 2,807

Love Your Garden 1,947 2,744 3,541

Education, water saving measures and pricing 3 0 19,000 19,000

Toilet Replacement Program 243 507 725

Business

Business programs4 22,349 23,586 24,825

Smart Rinse 577 894 956

Monitoring top 100 businesses 0 302 604

BizFix (Includes Business Amenity Retrofit) 172 493 734

Every Drop Counts in Schools 161 219 277

Rainwater Tanks in Schools 46 50 54

Leak reduction

Active Leak Detection5 23,871 23,214 22,557

Pressure Management 4,981 7,850 10,392

Improved leak/break response times 730 730 730

Recycled water

Operational schemes:

Existing STP reuse and minor recycling 6 2,047 2,047 2,047

Rouse Hill – stage 1 1,402 1,402 1,402

Wollongong – stage 1 7,300 7,300 7,300

Botany - Orica (non Sydney Water scheme) 2,263 2,263 2,263

SOPA (non Sydney Water scheme) 850 850 850

Schemes under development:

Rouse Hill Stage 2 153 263 372

Rosehill/Camellia Recycled Water Project6 0 0 4,380

Wollongong – stage 27 0 584 584

STP Onsite (Bondi and Malabar STP) 0 219 219

Colebee Golf Course 110 220 220


SW51 09/08

Program 08-09 09-10 10-11

Kurnell (non Sydney Water scheme) 0 1,095 2,190

Regulatory measures

WELS 3,878 5,953 8,813

BASIX8 5,122 7,830 10,455

Pilots

Business water saver grant scheme II 136 399 399

Commercial high rise project 44 88 131

Spray nozzle retrofit 13 13 13

SMWU Council Project 0 602 602

Multi Unit Metering

Total savings 94,289 127,629 144,080

1 - Only water savings achieved since 1999 are included.

2 - Includes savings from 4 star washing machine rebate purchases to end July 2008 and 4½ star washing machine rebate

purchases from 1 August 2008.

3 - These savings take into account the effect of the current restrictions for 2006-07. Also, some savings from education

campaigns are captured in other residential programs.

4 - This includes savings from the One-to-One Partnerships, Climate Change Fund, Water Saving Action Plans, Pilot Water

Savings Fund, NSW Government Buildings and Enhanced Water Savings Fund.

5 - From 2009-10, it is anticipated that the length of pipeline inspected will decrease in line with the latest estimate of economic

level of leakage.

6 - Based on the 1998-99 drinking water use at STPs as baseline (2,555 ML/year).

7 - Figures provided are savings at the end of year. The scheme will be operational for part of the first year, therefore actual

savings for the full year are 50% of the end of year figure.

8 - The savings for BASIX have been adjusted to avoid double counting with recycled water schemes.


SW51 09/08

5.9 Forecast expenditure to 2010-11

Table 11: Forecast Sydney Water yearly program investment (gross $’000)

Program 08-09 09-10 10-11

Residential

WaterFix (residential) 2,260 2,260 2,260

DIY water saving kits 280 280 280

Washing Machine Rebate1 4,530 4,800 0

Rainwater Tank Rebate 4,100 4,100 4,100

Love Your Garden 2,760 2,760 2,760

Education, water saving measures and pricing 1,540 1,580 1,620

Toilet Replacement Program 5,880 6,820 6,100

Business

Business programs2 3,110 3,130 3,200

Contestable contributions to Climate Change Fund (former

Water Savings Fund) 15,000 15,000 15,000

Recycled water program development and managing

existing schemes3 830 860 880

Smart Rinse 1,160 1,240 540

Monitoring top 100 Businesses 350 470 260

BizFix (Business Amenity Retrofit) 1,020 1,550 1,320

Every Drop Counts in Schools 310 320 320

Rainwater Tanks in Schools 230 240 240

Leakage reduction

Active Leak Detection 6,600 4,600 4,000

Pressure Management 12,720 17,890 19,070

Improved leak/break response times 4,000 4,000 4,000

Recycled water

Operational schemes

Existing STP reuse and minor recycling 4 330 330 330

Rouse Hill – stage 1 (releases 1 and 2) 1,680 1,710 1,750

Wollongong – stage 1 1,120 1,140 1,150

Schemes under development

Rouse Hill – stage 2 15,100 4,400 4,400

Wollongong – stages 2 &3 18,010 720 720

Rosehill/ Camellia Recycled water project 3,550 6,900

STP Onsite (Bondi and Malabar) 6,200 270 270

Pilots

Business Water Saver Grant Scheme II 1,100 0 0

Commercial High Rise Project 370 380 390


SW51 09/08

Program 08-09 09-10 10-11

Spray Nozzle Retrofit 130 0 0

Small Medium Water User Council Project 1,300 100 0

Residential R&D pilot programs 160 170 170

Program management

Program management 720 740 760

Totals

Total Investment 112,900 85,410 82,790

1 – Includes costs for 4 star washing machine rebate purchases to end July 2008 and 4½ star washing machine rebate

purchases from 1 August 2008

2 - Includes the One-to-One Partnerships, and development costs.

3 - The cost for developing recycled water programs within the EDC Business Program.

4 - Costs for recycling schemes include costs expected to be incurred only by Sydney Water such as planning, operating and

some capital costs. Many of these projects involve significant investment by developers or the private sector, which is not

captured in this table.


SW51 09/08

Appendix 1 Reporting requirements reference

Table 12 provides a guide to auditors on how the Water Conservation and Recycling Implementation Report meets the reporting requirements of Section 9 of Sydney Water’s Operating Licence and Ministerial requirements arising from previous Operating Licence audits.

Table 12: Reporting guide for auditors

Reporting requirement Subject Location in Report

Operating Licence

Clause 9.1.1 Actions taken to reduce the quantity of water

drawn

Sections 3, 4 and 5

Clause 9.1.2 Climate correction Appendix 5 – Correcting for Climate

Clause 9.1.3 Report on progress This report

Clause 9.1.2 Demand side planning Sections 1, 2, 3, 4 and 5

Clause 9.2.2 Annual report on progress This report

Clause 9.2.3 (a) Past present and projected water uses Appendix 3 – water use trends

Clause 9.2.3 (b) Supply deficiencies Appendix 2 – Managing supply deficiencies

Clause 9.2.3 (c) Conservation measures practised Section 4

Clause 9.2.3 (d) Evaluate additional measures Section 5

Clause 9.2.3 (e) Future initiatives Sections 4 and 5

Clause 9.2.3 (f) Evaluate future plans in terms of cost and

contrast with alternative water supplies

Sections 1, 2 and 5

Clause 9.2.3 (g) Prioritisation of initiatives Section 5

Clause 9.2.3 (h) Reducing water leakage Section 4, Appendix 8 – water leakage

Clause 9.2.3 (i) Water balance table Appendix 8 – water leakage

Clause 9.2.3 (j) Consumption of water across sectors Appendix 8 – water leakage

Clause 9.2.3 (k) Schedule Appendix 6 – water conservation reporting

schedule

Clause 9.3.1 & 9.3.2 Reducing discharges Appendix 9 – water recycling – reducing

discharges

Clause 9.4.1 & 9.4.2 Rating and labelling Section 4


SW51 09/08

Appendix 2 Managing supply deficiencies

This appendix addresses the requirement in clause 9.2.3(b) of Sydney Water’s Operating Licence to describe the frequency and magnitude of supply deficiencies, including those arising as a result of wastage or loss, drought or emergency.

The regulatory framework The regulatory framework establishes the parameters within which Sydney Water and the SCA operate in relation to drought and expected supply deficiencies.

SCA Operating Licence The SCA's Operating Licence requires that the SCA provide an estimate of yield. The water supply system yield is the maximum annual average demand that can be supplied by the water supply system whilst conforming to the SCA’s design criteria. The SCA estimates yield using the Water Headworks Network (WATHNET) model. The SCA is required to report to the Minister, IPART and the public on the current estimate of the water supply system yield within 12 months of the commencement date of its Operating Licence. It must also report on yield when significant events occur such as the end of a drought, or major modifications to catchment infrastructure works.

Demand – Supply balance The 2006 Metropolitan Water Plan addresses the medium term demand-supply balance and ensures that Sydney is well placed to meets its water needs in the long term.

The plan is currently being reviewed and will ensure an optimal set of programs are in place to maintain the demand-supply balance.

Sydney Water is participating in this review. A revised plan will be developed for 2010.

Responding to drought Drought management As described in the 2006 Metropolitan Water Plan, drought in Sydney is managed by a range of actions to increase supplies or reduce demand. During the current drought these have included (NSW Government 2006):

� Imposing restrictions on demand (Levels 1 to 3 in the current drought) in response to decreasing storage levels

� Transfers from the Shoalhaven system

� Constructing works to access deep storages in Warragamba and Nepean Dams

� Establishing the feasibility of desalination and groundwater

� Increasing recycling and water savings measures to reduce demand

� Halving interim environmental flows from dams on the Hawkesbury-Nepean when storages reached 40%.

The 2006 Metropolitan Water Plan outlines a new approach to managing high impact droughts. This approach focuses on non-rainfall dependent options such groundwater and desalination. These options provide a safety net for water supply.

Responding to emergency In the event of an emergency such as the physical loss of storage or transfer systems, individual supplies may be affected.

Sydney Water and the SCA have detailed business continuity plans and procedures for responding to incidents and emergencies.

Responding to wastage or loss Sydney Water has prepared a detailed response to wastage and loss through Sydney Water’s Leak Reduction Program. This is described in section 4.5.


SW51 09/08

Appendix 3 Water use trends

Long term water demand trends Total water demand since 1952

0

100

200

300

400

500

600

700

800

1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012

Year ending 30 June

To

tal w

ate

r su

pp

lied

(G

L)

0.0

0.6

1.2

1.8

2.4

3.0

3.6

4.2

4.8

Po

pu

lati

on

su

pp

lied

(m

illio

ns)

Total water supplied Population supplied Figure 9 Total water demand since 1952

Per person water demand since 1952

0

100

200

300

400

500

600

700

800

1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012

Year ending 30 June

Per

cap

ita c

on

su

mp

tio

n (

litr

es/c

ap

ita

/day

)

0.0

0.6

1.2

1.8

2.4

3.0

3.6

4.2

4.8

Po

pu

lati

on

su

pp

lie

d (

millio

ns

)

Per capita consumption Population supplied

Figure 10: Per person water demand since 1952


SW51 09/08

Sector water demand trends Residential sector water demand – volumetric

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year ending 30 June

Meg

ali

tre

s

Flats & Units Houses Total

Figure 11: Residential sector water demand - volumetric

Residential houses water demand – per property

0

60

120

180

240

300

360

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year ended June

Av

era

ge

co

ns

um

pti

on

(k

L/p

rop

ert

y)

0

200

400

600

800

1,000

1,200

Nu

mb

er

of

pro

pe

rtie

s (

'00

0s

)

Average consumption Number of properties

Figure 12: Residential houses water demand – per property


SW51 09/08

Residential units water demand – per unit

0

30

60

90

120

150

180

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year ended June

Av

era

ge

co

nsu

mp

tio

n (

kL

/pro

pe

rty

)

0

100

200

300

400

500

600

700

Nu

mb

er

of

dw

ellin

gs

('0

00

s)

Average consumption Number of dwellings

Figure 13: Residential units water demand – per unit

Industrial water demand – per property

0

1,000

2,000

3,000

4,000

5,000

6,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year ended June

Av

era

ge

co

ns

um

pti

on

(k

L/p

rop

ert

y)

0

5

10

15

20

25

30

Nu

mb

er

of

pro

pe

rtie

s (

'00

0s

)


Figure 14: Industrial water demand – per property


SW51 09/08

Commercial water demand – per property

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year ended June

Av

era

ge c

on

su

mp

tio

n (

kL

/pro

pe

rty

)

0

4

8

12

16

20

24

28

32

36

40

Nu

mb

er

of

pro

pe

rtie

s (

'00

0s

)


Figure 15: Commercial water demand – per property

Government and institutional water demand – per property

0

600

1,200

1,800

2,400

3,000

3,600

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year ended June

Av

era

ge

co

ns

um

pti

on

(k

L/p

rop

ert

y)

0

2

4

6

8

10

12

Nu

mb

er

of

pro

pe

rtie

s (

'00

0s

)


Figure 16: Government and institutional water demand – per property


SW51 09/08

Note: The increase in 2005-06 of the number of properties in the government and institutional sector is due to the inclusion of public hospitals and state schools in this category of customers. The decrease of average consumption in 2003-04 was due to the introduction of water restrictions and reclassification of some properties previously included in this sector.

Water leaks

0%

5%

10%

15%

20%

25%

Ju

n-9

3

Ju

n-9

4

Ju

n-9

5

Ju

n-9

6

Ju

n-9

7

Ju

n-9

8

Ju

n-9

9

Ju

n-0

0

Ju

n-0

1

Ju

n-0

2

Ju

n-0

3

Ju

n-0

4

Ju

n-0

5

Ju

n-0

6

Ju

n-0

7

Ju

n-0

8Non-metered water Unaccounted for water Real losses

Figure 17: Water leaks

Note: Percentages from 2005-06 are calculated using a base of total water supplied in 2005-06.


SW51 09/08

Sector water demand forecasts The following charts show forecast demand in each major sector and the impact of water conservation programs on future demand in that sector.

Residential sector water demand forecast

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2008 2009 2010 2011

Year ending June

ML

Baseline demand Demand with DM program

Figure 18 Residential sector water demand forecast

Business sector water demand forecast

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

2008 2009 2010 2011

Year ending June

ML


Figure 19: Business sector water demand forecast


SW51 09/08

Forecast of non-revenue water

0

25,000

50,000

75,000

100,000

2008 2009 2010 2011

Year ending June

ML


Figure 20: Forecast of non revenue water


SW51 09/08

Appendix 4 Residential water use in Australia

Table 13 provides information on the volume of water supplied by major utilities around Australia to residential areas. These utilities provide water to over 100,000 residential customers (National Water Commission 2008).

Table 13: Average annual residential water supplied (kL/property) 2001-02 to 2006-07

Major Utility State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Water Corporation- Perth Western Australia 289* 260* 285* 277* 268* 281*

ACTEW Corporation Australian Capital

Territory

325 320 248 240 261* 240*

SA Water - Adelaide

Metropolitan

South Australia 252 273 245* 235* 233* 235*

Sydney Water New South Wales 251 255 224* 211* 203* 199*

Hunter Water Corporation New South Wales 209 222 208 197 204 192

Gold Coast Water Queensland 250* 202* 198* 244 200* 183*

Yarra Valley Water Victoria 215 225* 204* 193* 198 178*

Barwon Water Victoria 200 219 218 206 216* 169*

South East Water Ltd Victoria 210 209* 186* 184* 187 167*

City West Water Victoria 212 214* 188* 187* 183 163*

Brisbane Water Queensland 268 256 258 264* 185* 153*

* This data is affected by water restrictions.

In 2005-06 and 2006-07, there was a decline in the water supplied by major utilities. This reflects the effects of ongoing drought conditions and the consequent

impact of water restrictions and conservation efforts.


SW51 09/08

Appendix 5 Correcting for climate

Climate correction Climatic conditions have a strong influence on the levels of customer water use, predominantly through their impact on residential outdoor use. Water use by residential customers is seasonal with higher use over the summer months and the lowest use during the colder winter months. Short term fluctuations in water use significantly above or below the seasonal trend can also result from day to day, and week to week changes in the weather.

The purpose of climate correction of demand is to remove, as far as practicable, the impact of the climatic variations to determine how much water would have been used under 'average weather conditions'. This is important, as year-to-year total demand figures may show significant variation. Climate correction is necessary for monitoring and identifying the underlying demand trends.

The climate correction model used by Sydney Water does not remove the seasonal variations in demand. Corrections, however, are made for weather conditions (temperature, rainfall and an evaporation index) that are significantly above or below average for that period of the year. Sydney Water will review its climate correction model in 2008-09.

Measuring against an ‘average year’ Sydney Water uses a climate correction model that reports ‘average year’ demand as a 365 day rolling average of water use in litres per person per day.

Results from the climate correction model at 30 June 2008, as shown in Figure 21, estimate an upward correction to demand (i.e. under normal weather conditions we would have used more water than actual). The 365-day moving average of demand at 30 June 2008 was 306 litres per person per day with a climate correction of +2.1 litres per person per day. This gives a climate corrected demand of 308 litres per person per day at 30 June 2008, a 39% reduction on 1991 base year consumption (506 litres per person per day). Climate corrected per person demand has been decreasing since early 2002 with the trend decline steepening since mandatory restrictions were introduced in October 2003. The margin of climate correction has been in a relatively narrow band of around ± 5 litres per person per day since December 2003. This reflects the fact that the restrictions remove much of the variation in demand that is due to climatic changes.

Figure 21 Climate Correction


SW51 09/08

Appendix 6 Water conservation reporting schedule Table 14: Water conservation reporting schedule – Actual Performance 2007-08

Water savings (ML/yr) Net expenditure

($'000)

Results Program

Planned Actual Planned Actual

Sydney Water performance

indicators

Planned Actual1

Residential indoor

WaterFix (Residential) 732 670 4,657 6,470 Number of households serviced 35,000 32,038

WaterFix (Department of Housing and expanded

DoH) 105 75 336 480 Number of households serviced 5,000 3,592

DIY Water Saving Kits 242 293 -65 466 Number of kits distributed 50,000 60,353

Washing Machine Rebate 515 1131 7,498 9,850 Number of rebates paid 47,000 63,047

Residential outdoor

Education, water saving measures and pricing 0 0 2,450 1,723 Communications design

developed 1 1

Love Your Garden 1,063 626 2,622 2,717 Targeted landscape

assessments completed 10,000 5,890

Rainwater Tank Rebate 553 474 8,763 5,249 Number of rebates paid for tanks

installed 12,500 10,828

EDC Business Program

One to One Partnerships 1,344 1,629 2,542 4,270 Number of MoUs signed 20 23

NSW Government Water Efficiency 188 112 764 595 Total number of audits

completed 64 73

Smart Rinse 126 259 636 563 Number of valves fitted 500 1,028

Every Drop Counts in Schools2 9 0 200 238 Number of schools participating

in the leakage component 40 41

Rainwater Tank in Schools Rebate 6 5 100 244 Number of rebates paid for tanks

installed 20 29


SW51 09/08

Water savings (ML/yr) Net expenditure

($'000)

Results Program



indicators

Planned Actual1

Leak reduction

Active Leak Management 1,095 1,059 5,500 5,600 Number of kms of watermain

inspected for leaks 19,500 19,600

Pressure Management 4,166 679 12,024 9,757

Number of pressure

management schemes

established

25 2

Leak/break response time 0 0 4,000 4,000

Enabling programs

Residential customer research

Number of research activities

conducted into customer

attitudes towards water

conservation

22

Program management 810 894

1- Actual work completed in 2007-08 has been slightly adjusted to ensure the total figure reported in 2007 matches the total to date.

2- This program now includes detecting leaks in schools.


SW51 09/08

Table 15: Water conservation reporting schedule – Expected Performance 2008-09

Water savings

(ML/yr)

Net expenditure

($'000)

Results Program



indicators

Planned Actual

Residential indoor

WaterFix (Residential) 146 1,980 Number of households serviced 7,000

DIY Water Saving Kits 73 220 Number of kits distributed 15,000

Washing Machine Rebate (4 Star until 31 July

and 4.5 star from 1 August onwards)

406 4,200 Number of rebates paid 26,500

Toilet Replacement Program 229 980 Number of toilets replaced 9,000

Residential outdoor

Love Your Garden 797 2,540 Number of properties participated 7,500

Rainwater Tank Rebate 313 4,090 Number of rebates paid for tanks

installed

7,000

EDC Business Program

One to One Partnerships 1,460 3,010 Number of MoUs signed 10

Smart Rinse Program 317 1,160 Number of valves fitted 1,250

Every Drop Counts in Schools 58 310 Number of schools contacted 40

Rainwater Tank in Schools Rebate 4 200 Number of rebates paid for tanks

installed

25

Leak reduction

Active Leak Detection 1,897 6,600 Number of kms of watermain

inspected for leaks

21,000

Pressure Management 4,142 12,720 Number of pressure management

schemes established

43

Leak/break response time 0 4,000 N/A


SW51 09/08

Water savings

(ML/yr)

Net expenditure

($'000)

Results Program



indicators

Planned Actual

Water recycling

Recycled water program development and

management

N/A

Enabling programs

Program management N/A 720 N/A


SW51 09/08

Appendix 7 Community education

Community education activities that Sydney Water participated in throughout 2007-08 are listed in Table 16. The table also outlines activities undertaken to actively engage key

industry groups via the Every Drop Counts Business Program. Sydney Water also attended community events, which provided opportunities for face-to-face interaction with customers.

Table 16: Community water conservation education activities 2007-08

Initiative Outcomes

DIY Water Saving Kit campaign

Community events and promotions at railway stations were

the main way DIY water saving kits were distributed in 2007-

08.

About 30,000 kits were distributed at more than 20 railway

stations.

Community events included The Royal Easter Show,

Cabramatta Moon Festival, Ingleburn Alive Fair, Wellbeing

Festival at Canada Bay and Granny Smith Festival at

Eastwood.

DIY Water Saving Kit – Events with Every Drop Counts

Business Program partners

Our Every Drop Counts Business Program conducted water

conservation awareness events for staff at customer sites.

Events included Bovis LendLease, IAG, Multiplex, Investa,

Boral, ING and Qantas.

School education activities

The Every Drop Counts in Schools Program targets schools

for the purpose of increasing awareness, commitment and

action on water conservation. There are three main elements

to the program:

Installation of water monitoring and alarm systems in 40

schools each year. Targeted schools are those that are high

water using and/or those making water efficiency a priority

A program of voluntary water meter readings to monitor water

use and identify leaks

Development and distribution of education material to support

water conservation and education and develop water

responsible citizenship in schools.

A Rainwater Tank rebate is also available for schools. This

program supports schools to install a rainwater tank

connected to fixed irrigation or internal plumbing.

49 schools signed a Memorandum of Understanding (MOU)

with targets including 15% water saving by Dec 08.

Water monitoring and alarm systems were installed in 40

schools

Teacher professional development was provided for

principals, teacher and general assistants of 49 schools

The Kids Design Challenge was sponsored. This is a joint

initiative of DET and Technology in Primary Schools teacher

network. It involves 25 schools in a 10-week curriculum based

program of evaluating water use in their environment and

proposing solutions to improve water conservation and

efficiency.

Classroom resources for schools were developed and

distributed to 151 schools in Sydney Water’s area, including a

water audit DVD, curriculum resources, a ‘Water Wise

Challenge’ play, award and book label stickers, and dominoes

and memory card games.

Taronga Zoo

Each year, our partnership with Taronga Zoo gives us the

opportunity to educate 1.2 million people, including more than

80,000 school children, about key water saving messages.

Each year, Sydney Water runs a month long promotion at

Taronga Zoo. The 2008 promotion centred on interactive

activities for children through a water wise passport activity,

interactive displays and giveaways. The promotion focused on

water recycling and conservation and highlighted the range of

initiatives Sydney Water is undertaking under the 2006

Metropolitan Water Plan.

Over 15,000 Waterwise passports were handed out to children

during April. The passports contained interactive activities

designed to increase awareness and knowledge of water

conservation and recycling.

More than 10,000 children were rewarded with an educational

backpack after finishing the passport activity.

1.359 free DIY water saving kits were distributed.


SW51 09/08

Initiative Outcomes

Sydney Water also sponsors an on-site sustainable house,

which educates visitors about ways to limit the impact of their

everyday activities on the environment and water use.

Sculpture by the Sea

Sydney Water was the Founding sponsor of Sculpture by the

Sea. Sydney Water’s participation in the event in November

2007 included promoting water recycling, handing out free DIY

water saving kits and handing out cups of drinking water.

The event attracted about 500,000 people during the three

week period. 656 DIY water saving kits were handed out.

Sydney Water’s website

The website has water conservation pages that target both

residential and business customers.

More than 260,000 people visited the saving water at home

pages of our website. Almost 50,000 visited the saving water

in your business pages.

Media coverage – general water conservation

Sydney Water provided information to the community through

a number of paid and unpaid media items. These media items

included press advertisements, local advertorials and radio

interviews.

More than 300 stories were included in local papers promoting

our rebates and offers and providing water conservation tips.

Love Your Garden direct mail

The Love Your Garden Program aims to educate customers

about how to be water wise in the garden. As part of the

program, a horticultural expert provides advice about elements

that affect a garden’s watering needs including watering

behaviour, soil types and plant species. Detailed reports are

sent to customers following their assessment with tailored

gardening advice and recommendations.

90,000 press inserts as well as a follow up advertisement

were included in suburbs with a high uptake rate. Direct mail

was also used to increase awareness and encourage

participation in the program.

WaterFix

The WaterFix Program provides customers with the

opportunity to have a qualified plumber install a water efficient

showerhead and other water saving devices in their home.

A trial campaign incorporating radio, online, press and press

inserts was implemented in conjunction with direct mail in

2008.

Water Conservation Seminars

One water conservation seminar was held for Every Drop

Counts Business customers. The seminar provided an

opportunity for industry representatives to listen to new

developments in water saving initiatives as well as offer advice

and share experiences.

One Council workshop was held in April 2008.

Every Drop Counts Water Conservation Awards

The Every Drop Counts Business Program conducts an

annual awards ceremony to recognise exceptional

achievements in water conservation and improve the public

profile of the business program.

There were five category award winners and 16 individual

award winners.

Coverage of award winners was promoted in the major

metropolitan newspapers.

The Conserver Newsletter

The Conserver newsletter is published three times a year and

offers advice and solutions to common water use problems

within businesses. It showcases water conservation success

stories from the Every Drop Counts Business Program

participants.

About 2300 copies are mailed directly to customers every

edition. Additional hard copies (about 1,000) are distributed

face to face to customers and key stakeholders.

Copies of The Conserver are also downloaded from Sydney

Water’s website. Combined with email alerts about The

Conserver’s publication, this is becoming an increasingly


SW51 09/08

Initiative Outcomes

important way of distributing the magazine. There were 292

downloads of Conserver in 2007-08.

Co-branded posters

The Every Drop Counts Business Program helps our business

partners communicate water conservation messages to their

staff through the distribution of co-branded posters and

stickers. The posters and stickers include water conservation

messages and are customised for each business with the

addition of company logos and a contact number for reporting

leaks in each workplace.

Companies on the Every Drop Counts Business Program

were provided with posters and stickers to educate their staff

about water conservation.

Media coverage of Every Drop Counts Business Program

Sydney Water’s Every Drop Counts Business Program

received media coverage in a range of newspapers, trade

magazines and online media forums.

Media items included:

� Water conservation awards and case studies of successful companies

� The program won a NSW Government Sustainability Green Globe Award and has been named as a finalist for the Banksia Award for the education category.

� Articles originally published in The Conserver were also reprinted in other publications.


SW51 09/08

Appendix 8 Water leakage (water balance)

Estimation of leaks or real losses Sydney Water uses the global water balance approach (Table 17) to determine the leakage from the drinking water system. The water balance is a reconciliation of the volume of water produced by Sydney Water’s water filtration plants with all known and estimated end uses, with the remainder deemed to be leakage.

For 2007-08, leakage or real losses is estimated to be 42,995 ML/year. This is slightly lower than the previous year’s result. However small movements from year to year should be treated with caution. All data and calculations have errors that need to be borne in mind when interpreting results. As leakage volumes calculated via a water balance are proportionally small, residual errors tend to be magnified. The uncertainty band on leakage as calculated by an annual water balance is estimated to be ± 25% (95% confidence limit).

Reliable long-term trends require at least three years of trending with five years preferred. This serves to smooth any errors that have occurred during any particular year.


SW51 09/08

Water balance

Table 17: Water balance 2007-08 (ML)

Billed metered

consumption

422,904

Billed authorised

consumption

425,825

Revenue water

425,825

Billed unmetered

consumption

2,922

Unbilled metered

consumption

192

Authorised consumption

430,938

Unbilled authorised

consumption

5,113 Unbilled unmetered

consumption

4,921

Unauthorised

consumption

483 Apparent losses

8,941 Customer meter under-

registration

8,458

Water supplied

482,874

Water losses

51,936

Real losses

42,995

Non revenue water

57,049

Real losses from

distribution system

42,995

Table 18: Sectoral consumption 2007-08 (ML)

Single residence 209,090

Multi Unit 90,830

Residential Billed metered Consumption

Other 0

Industrial 44,040

Commercial 43,890

Government 14,850

Primary producers 4,720

Non -residential Billed metered consumption

Other 15,480

Billed unmetered 2,920 Residential and non-

residential Unbilled metered and

unmetered consumption

5,110

Effluent 25,460 Recycled

Stormwater -


SW51 09/08

Appendix 9 Water recycling-reducing discharges

Regulatory requirements Section 27 of the Sydney Water Act, 1994 requires Sydney Water to adopt as an ultimate aim the prevention of all dry weather discharges of sewage to waters, including from ocean outfalls, except to the extent that this is necessary to safeguard public health or prevent environmental degradation or both. This section also requires Sydney Water to develop five yearly projections of the amount of sewage or effluent that it proposes will be reused, intercepted or otherwise prevented from discharge.

Sydney Water’s Operating Licence requires Sydney Water to take action to re-use, intercept or otherwise prevent from discharge into the ocean, waterways and other waters, sewage or effluent of customers and consumers by way of non-drinking reuse. Sydney Water is also required to meet recycling targets set by the Minister from time to time. There is no formal water recycling target set by the Minister for the current period of the Operating Licence. However, the 2006 Metropolitan Water Plan includes a target for recycling 70 GL of water by 2015.

In addition, under Clause 7.3.2 of the Operating Licence, Sydney Water must ensure that all sewage treatment plants (other than Malabar, North Head and Bondi, and storm flow sewage treatment plants at Fairfield, Bellambi and Port Kembla) use at least 85% recycled water for treatment processes by 30 June 2009.

Reduction in wastewater discharged projection Public comment on the 2005 to 2015 wastewater discharge projection was sought from 1 November to 4 December 2006. No comments were received. It is projected that in 2015, 126 GL/year of treated wastewater will be prevented from entering the waterways. Recycling is expected to contribute 70 GL/year and water conservation programs 56 GL/year.

Current water recycling As shown in Figure 22, since 1995 recycled water use from existing sewage treatment plants has increased from 17 ML/day to 41 ML/day. The volumes of recycled water supplied by the various recycled water schemes in 2007-08 are shown in Table 19, and Figure 23 shows the volume of recycled water used at the STPs per day.

Figure 22: Recycled water usage by sector


SW51 09/08

Table 19: Water recycling schemes in operation

Scheme

Type of use

Source (STP)

Scheme in

operation

Effluent

reused in

2007-08

(ML/annum)

Existing STP reuse Industrial Local -- 14,917

Richmond Golf Irrigation Richmond 1967 55

Ashlar Golf Irrigation Quakers Hill 1974 77

Warwick Farm Race Course Irrigation Liverpool 1980 31

UWS Hawkesbury Irrigation Richmond 1996 169

Castle Hill Golf Irrigation Castle Hill 1983 66

Hickeys Lane Reserve Irrigation Penrith 1994 2.6

Kiama Golf Irrigation Bombo 1998 75

Picton Irrigation Picton 1999 418

Dunheved Golf Irrigation St Marys 2000 56

Rouse Hill Stage 1 Residential Rouse Hill 2001 1,402

Gerringong Gerroa Irrigation Gerringong (Gerroa) 2002 71

Liverpool Golf Irrigation Liverpool 2004 24

Wollongong stage 1 Industrial Wollongong 2006 6,652

Penrith – stage 1 Irrigation Penrith 2007 4

Elizabeth Macarthur Agricultural Scheme Irrigation West Camden 2007 143

SOPA (non Sydney Water scheme) Irrigation/ Residential WRAMS 2000 767

Botany Orica (non Sydney Water scheme) Industrial Groundwater 2007 529

Total 25,460


SW51 09/08

Figure 23: Drinking versus recycled water use in STPs4

4 Based on the 1994-95 drinking water use at STPs as baseline (4380 ML/year)


SW51 09/08

Operating Licence Clause 7.3.1 requires Malabar, North Head and Bondi STPs to reduce drinking water use by 80%. Planning is progressing to deliver the Malabar STP scheme by 2009 and it is anticipated that Bondi STP will be able to meet the requirements through water efficiency measures. Operating Licence Clause 7.3.2 requires all STPs (other than Bondi, Malabar, North Head and storm flow sewage

treatment plants at Fairfield, Bellambi and Port Kembla) use at least 85% recycled water for treatment. This target has now been met or exceeded at most of Sydney Water’s sewage treatment plants.

Table 20 details the planned total water recycled by 2010-11 and the commencement dates for the various recycled water schemes.

Table 20: Recycled water use by 2010-11

Scheme Type of use Source (STP) Scheme

commence

Volume water

recycled 2010-11

(ML/year)

Existing Schemes

Existing STP reuse and minor

recycling

Various Local - 14, 917

Rouse Hill - Stage 1 Residential Rouse Hill 2001 1,402

Wollongong – stage 1 Industrial Wollongong 2006 7,300

Elizabeth Macarthur Agricultural

Scheme Irrigation West Camden 2007 730

Botany - Orica (non Sydney Water

scheme) Industrial Groundwater 2007 2,263

SOPA (non Sydney Water scheme) Residential/urban irrigation WRAMS/sewer mining 2000 850

Subtotal 27,462


Rouse Hill Stage 2 Residential Rouse Hill 2007-08 365

Rosehill/Camellia Recycled Water

Project 1 Industrial/irrigation Sewer mining 2010-11 4,667

Wollongong – stage 2 1 Industrial Wollongong 2008-09 584

Replacement Flows Project Replacement flows Penrith, St Marys, Quakers Hill 2010-11 17,520

STP Onsite (Bondi and Malabar STP) STP Reuse Local 2009-10 219

Other Irrigation (Colebee GC) Irrigation Local 2008-09 220

Other Local Recycling Various Local Various 3,194

Subtotal 26,769

TOTAL 54,231

1 - Figures provided are savings at the end of year. The scheme will be operational for part of the first year, therefore actual

savings for the full year are 50% of the end of year figure.


SW51 09/08

Appendix 10 Water savings assumptions Table 21: Water saving assumptions to 2010-11 and sensitivity around the forecast

Program Description and key assumptions

Residential Indoor

WaterFix (Residential)

Average water savings per household participating in the WaterFix program is assumed to be 20.9

kL/hh/year.

High degree of certainty about water saving estimates.

WaterFix (Department of

Housing and expanded

DoH)

Conservatively assumes 20.9 kL/hh/year average water savings based on Sydney Water WaterFix

Program. However, savings could be higher as DoH dwelling water use was higher than Sydney

average.


DIY Water Saving Kits Average water savings for households participating in the DIY program is 6.73 kL/hh/year.


Washing Machine

Rebate

The rebate for 4 star machines was expected to deliver 24.3 kL/hh/year per household. The new

rebate program for 4.5 star rated machines will deliver 3.5 kL/hh/year in addition to that a 4 star

machine. This is based on the assumption of an average load capacity of 7.1 kg and each

household doing 300 loads per year.

High uncertainty about water savings.

Residential outdoor

Outdoor education,

water saving measures

and pricing

Ongoing outdoor water saving measures supported by ongoing community education campaigns

similar to Sydney Water’s previous ‘Every Drop Counts’ and ‘Go Slow on the H2O’ campaigns.

Savings are estimated at 19,000 ML/year once water restrictions are lifted.


Love Your Garden

The Love Your Garden program targets water users who use at least 267 kL/year. Once the

program is implemented it is expected to reduce this outdoor demand by 47%,



Based on results to date the expected average water savings for each rainwater tank rebate

ranges from 35 to 60 kL/year, depending on installation arrangements and conditions.


Business

Every Drop Counts

Business Program

Forward water saving and investment assumptions for the EDC Business Program are based on

results to date and assessment of market potential. In 2007-08 water saving 5.25 ML/d. It is

expected to save about 4 ML/d in 2008-09 and 3 ML/d between 2009-10 and 2011-12.

Medium to high certainty of water savings - conservative assumptions based on experience to

date.

Every Drop Counts in

Schools

Installation of permanent smart monitoring and alarm systems is expected to save 5% of total

water use at each participating school. It is assumed that the average water use per school is 12.4

kL/d.


Rainwater Tanks in

Schools rebate

Installation of a rainwater tank is expected to save between 138.6 kL/year – 187.9 kL/year at each

participating school, depending on tanks size and water end use.



SW51 09/08


Leak reduction

Active leak detection and

repair

Assumes Active Leak Detection will be 21,000 km of mains inspected and repaired in 2008-09 and

then maintained at a rate consistent with the Economic Level of Leakage beyond that year.

Conservative assumptions about water savings based on experience to date.

Break/leak response

time

Aims to achieve compliance with Clause 4.13 of the 2005-10 Operating Licence.

Savings are based on recorded response times and leakage rates available.

Conservative assumptions about water savings based on experience to date.

Pressure reduction

Assumes about 140 pressure reduction schemes installed over six years with associated water

system adjustments to isolate new pressure zones.

Forecast savings have been estimated by the Asset Planning Pressure Management Team based

on international accepted algorithms to forecast leakage reduction. Experience in-house and from

other pressure management programs within Australia was used to give estimates of the impact of

pressure management on customer demand.

Conservative assumptions about water savings based on international and Australian experience.

Water Recycling

Sydney Water STP

reuse

It is assumed that increases in recycling at Sydney Water STPs contribute to a reduction in

drinking water use at the STPs.

The water savings are calculated from the reduction in measured drinking water use at the STPs.

Rouse Hill

Stage 1 over 17,000 lots have been connected.

Stage 2 commenced in 2006-07, with gradual increase in lot production.

Savings for stage 1 are based on measured volumes of water recycled.

Savings for stage 2 are estimated using a dwelling forecast and an estimate of average recycled

water used per dwelling.

Wollongong Recycled

Water Scheme – stage 1

– BlueScope Steel

Highly treated recycled water supplied to BlueScope (Port Kembla) from Wollongong STP – 20

ML/day.

Non-Sydney Water

industrial/irrigation

schemes (SOPA, Botany

– Orica, Kurnell)

Water savings for all these schemes are based on numbers estimated by the developers or

operators of these schemes.

The SOPA WRAMS scheme involves sewer mining and stormwater harvesting for irrigation and

residential non-drinking water uses at Sydney Olympic Park and Newington.

The Botany-Orica scheme involves treatment of contaminated groundwater and provision of the

treated water to industrial and irrigation users.

The Kurnell scheme involves sewer mining of effluent from Cronulla STP for further treatment and

use.

Industrial/irrigation

schemes under

development

(Wollongong stages 2,

Rosehill/Camellia and

Replacement flows

project)

Water savings for all these schemes are based on estimates of customer’s drinking water usage

and recycled water usage.

Wollongong stage 2 involves recycling of tertiary treated effluent to local irrigation and industrial

customers.

The Rosehill/ Camellia recycled water project involves provision of recycled water to industrial and

irrigation users in the Camellia and Smithfield areas.

Replacement flows project will substitute drinking water currently being released from

Warragamba Dam into the Hawkesbury-Nepean River with highly treated recycled water.


SW51 09/08


Irrigation schemes

(including existing and

schemes under

development)

Water savings for the irrigation schemes are estimated based on estimates of how much drinking

water would have been used for irrigation as a proportion of recycled water use. In many cases the

availability of recycled water allows additional water to be used for irrigation.

Existing schemes that contribute water savings are Dunheved Golf Course, Liverpool Golf Course

and Penrith Stage 1. Future schemes are West Camden Recycled water scheme and Colebee

Golf Course.

Schemes under development (other irrigation) include schemes at Malabar and Bondi.

Residential schemes

under development

Savings are estimated using a dwelling forecast and an estimate of average recycled water used

per dwelling.

Some schemes also include some industrial and irrigation components and water savings for

these components are based on estimates of customer water usage.

Regulatory and other measures

BASIX

Assumes all new dwellings (both single and multi-residential) use 40% cent less water than the

defined Sydney average household demand. The total is adjusted to avoid double counting with

recycled water projects.

Assumes BASIX alterations and additions commence as of October 2006 and will reduce demand

as follows:

- Showerhead – 15.0 kL/hh/year;

- Bathroom taps – 2.5 kL/hh/year;

- Kitchen taps – 5.0 kL/hh/year;

- Laundry taps – 2.5 kL/hh/year; and

- Leak repair – 5 kL/hh/year.

Medium to high certainty of water savings.

Appliance standards

WELS was introduced in July 2006 and saves 18 kL/hh/year from the replacement washing

machines rated below 3 star with a 3 star machine and another 6.3 kL/hh/year if replaced with a 4

star or higher machine. Also 16 kL/hh/year is saved by the replacement of water inefficient

showerheads.

Assumes minimum water efficiency performance standards are introduced for washing machines

from July 2009, with water savings noticed by 2010-11. Savings assumed from washing machines

only as the dual flush toilet minimum standard already applies and current technology restricts the

implementation of minimum standards on low flow showerheads.

Medium to high certainty of water savings.


SW51 09/08

Appendix 11 Sensitivity analysis

Table 22 Individual program water saving sensitivity analysis

08-09 09-10 10-11 Program

Water savings ML/year

Residential

High 9,947 10,148 10,323

Medium 9,893 10,039 10,185

WaterFix (residential)

Low 9,864 9,981 10,094

High 984 1,056 1,129

Medium 984 1,056 1,129

DIY water saving kits

Low 969 1,017 1,056

High 3,051 3,914 3,914

Medium 2,836 3,323 3,323

Washing Machine Rebates 4.5 Star

Low 2,668 2,910 2,910

High 2,315 2,762 3,209

Medium 2,181 2,494 2,807


Low 2,091 2,270 2,404

High 2,212 3,275 4,337

Medium 1,947 2,744 3,541

Love Your Garden

Low 1,681 2,106 2,425

High 0 20,900 20,900

Medium 0 19,000 19,000

Education, long term water saving rules and pricing

Low 0 14,250 14,250

High 301 630 902

Medium 243 507 725

Toilet Replacement Program

Low 186 384 547

Business

High 21,975 23,321 24,670

Medium 21,829 23,066 24,305

Business programs

Low 21,683 22,810 23,940

High 520 520 520

Medium 520 520 520

NSW Government Water Efficiency

Low 520 520 520

High 892 1,525 1,651

Medium 577 894 956

Smart Rinse

Low 436 613 648


SW51 09/08

08-09 09-10 10-11 Program


High 0 361 723

Medium 0 302 604

Monitoring top 100 businesses

Low 0 171 342

High 266 751 1,114

Medium 172 493 734

BizFix (Business Amenity Retrofit)

Low 107 273 397

High 175 248 321

Medium 161 219 277

Every Drop Counts in Schools

Low 146 190 234

High 48 52 57

Medium 46 50 54

Rainwater Tanks in Schools

Low 43 43 43

Leak reduction

High 24,346 23,525 22,704

Medium 23,871 23,214 22,557

Active Leak Detection

Low 22,393 22,065 21,736

High 5,395 8,551 11,347

Medium 4,981 7,850 10,392

Pressure Management

Low 2,910 4,345 5,616

High 730 730 730

Medium 730 730 730

Improved leak/break response times

Low 730 730 730

Recycled water

Operational schemes:

High 2,047 2,047 2,047

Medium 2,047 2,047 2,047

Existing STP reuse and minor recycling

Low 2,047 2,047 2,047

High 1,402 1,402 1,402

Medium 1,402 1,402 1,402

Rouse Hill – stage 1

Low 1,402 1,402 1,402

High 7,300 7,300 7,300

Medium 7,300 7,300 7,300

Wollongong – stage 1

Low 7,300 7,300 7,300

High 2,263 2,263 2,263

Medium 2,263 2,263 2,263

Botany - Orica (non Sydney Water scheme)

Low 2,263 2,263 2,263


SW51 09/08

08-09 09-10 10-11 Program


High 850 850 850

Medium 850 850 850

SOPA (non Sydney Water scheme)

Low 850 850 850


High 190 332 475

Medium 153 263 372

Rouse Hill Stage 2

Low 102 179 256

High 0 0 4,701

Medium 0 0 4,380

Rosehill/Camellia Recycled Water Project

Low 0 0 3,066

High 0 584 584

Medium 0 584 584

Wollongong – stage 2

Low 0 584 584

High 0 219 219

Medium 0 219 219

STP Onsite (Bondi and Malabar STP)

Low 0 219 219

High 110 220 220

Medium 110 220 220

Colebee Golf Course

Low 110 220 220

High 0 1,095 2,190

Medium 0 1,095 2,190

Kurnell (non Sydney Water scheme)

Low 0 1,095 2,190

Regulatory measures

High 3,878 5,953 9,070

Medium 3,878 5,953 8,813

WELS

Low 3,878 5,953 8,541

High 6,176 9,197 12,170

Medium 5,122 7,830 10,455

BASIX

Low 4,247 6,472 8,664

Pilots

High 136 399 399

Medium 136 399 399

Business water saver grant scheme II

Low 136 399 399

High 44 88 131

Medium 44 88 131

Commercial high rise project

Low 31 61 92


SW51 09/08

08-09 09-10 10-11 Program


High 13 13 13

Medium 13 13 13

Spray nozzle retrofit

Low 9 9 9

High 0 602 602

Medium 0 602 602

SMWU Council Project

Low 0 422 422

High 97,566 134,834 153,188

Medium 94,289 127,629 144,080

Total

Low 88,803 114,152 126,413

Figure 24 Total program water saving sensitivity analysis

Note: Assumed temporary restrictions lifted 30 June 2009 and long term water saving rules introduced. Assumed 30% residual water savings from level 3 restrictions at 30 June 2011.


SW51 09/08

Appendix 12 Program evaluation and ranking New options - identification, development and assessment Potential new programs are identified through scanning of environmental literature both locally and from around the world; programs from other agencies in NSW and other states; from ideas that are developed through the implementation of Sydney Water’s programs; and from ideas by customers and other stakeholders.

Preliminary development of the programs involves estimating costs and savings and determining if the program is practical. The preliminary estimates of costs and savings are used in the program evaluation stage and included in a ranked list of programs required to meet the Operating Licence water conservation target. New programs that are required to meet the target are developed further to refine the costs and savings.

Further development for many potential new programs involves piloting or trialing the program to determine the best method for implementation and to obtain better estimates for savings and costs. Further development for recycled water projects involves working with customers and developers to determine their recycled water needs, designing schemes, and reaching agreements with customers for the provision of the service.

Program Evaluation Decisions about which demand options should be pursued are made considering a range of criteria including economic, environmental, social and implementation considerations. Sydney Water considers only demand side options in its evaluation. However, supply side options, along with water conservation options, were considered in the 2006 Metropolitan Water Plan using a least cost planning approach.

Sydney Water’s evaluation of existing and potential new programs to meet the target is carried out using a two stage process. First the programs are screened considering community and stakeholder issues and then a Multi-criteria Analysis (MCA) is used. The MCA involves developing a ranked list of programs based on their performance against a number of criteria. The MCA is carried out through a series of workshops. These involve firstly agreeing on

selection criteria and the weightings to be applied to these. Values for each of these criteria are assigned or calculated for each program to give a score out of 10 for each criterion. Total scores are calculated for each program by multiplying the value by the weighting, and then the programs are ranked based on this score. Finally sensitivity analysis is carried out by adjusting the weightings of the criteria. The criteria used to evaluate the programs are:

� Utility levelised cost

� Implementation certainty

� Magnitude of drinking water savings

� Environmental benefit.

Levelised cost is calculated using a discounted cash flow analysis, usually over a 30-year period. Costs and benefits can be considered from the following perspectives:

� Total resource cost – considers the total cost of implementing an option, disregarding sources of funding or any transfer payments between parties. In effect it measures the total cost to the community to reduce the demand for drinking water. Where appropriate (and quantifiable), it also takes into account any system wide economic benefits such as avoided or delayed water cycle capital or operating expenditures due to reduced demand.

� Utility cost/benefit – considers the financial cost and benefits to Sydney Water to implement an option. It considers the direct capital or operating cost of option delivery, and any financial benefits such as avoided or delayed capital or operating costs and return cash flows that may be generated from participating customers, for example WaterFix contributions.

� Customer cost/benefit – considers the financial costs and benefits to the customer to take up water conservation options. It includes the cost to purchase and install a service or new appliance and any ongoing maintenance costs. It also includes financial benefits from reduced water and/or energy charges.


SW51 09/08

As the objective of all options is to reduce potable demand, reduced drinking water revenue for the utility due to demand reductions is disregarded in all analyses.

The utility levelised cost is used in this analysis as the objective is to select options that Sydney Water will implement, and the key factor is how much of Sydney Water’s funds will need to be spent to meet the Operating Licence target. Total resource levelised cost is relevant in the wider 2006 Metropolitan Water Plan framework. In 2008-09 the scores for this criterion ranged from 10 for a program with a levelised cost of 27c/kL (the current wholesale water price), to a score of 6 for a levelised cost of 141c/kL (the potable price in 2011), to a score of 1 for a levelised cost of 600 c/kL.

Implementation certainty criterion takes into account the likelihood of the program delivering the estimated savings in time (i.e. by 2011), and the likelihood of the cost estimate changing. Existing programs generally have a high certainty as they are currently being delivered, although there may be increasing costs or diminishing savings towards the end of the program. New options that have not been piloted would have a low level of certainty. The scores generally range from 2 (low certainty) to 5 (medium) and up to 8 (high).

The magnitude of potable savings criterion gives preference to programs that achieve significant volumes of savings. The scores range from 1 for 100 ML/year, to 10 for 7,000 ML/year (the approximate amount delivered by the current BlueScope steel recycling project).

The environmental benefit criterion takes into account environmental benefits including reduction in discharges to the sewer, stormwater or the environment; and reduction in energy use leading to lower greenhouse gas emissions. For example the WaterFix program, which involves installing water efficient showerheads, will reduce hot water usage, and therefore reduce discharge to sewer and energy use. Rainwater tanks reduce the discharge to stormwater. The scores generally range from 2 (low certainty) to 5 (medium) and up to 8 (high). – a rating of the likelihood of water savings being achieved.


SW51 09/08

Appendix 13 Glossary

Adaptive management approach Involves an ongoing cycle of review and development. New programs are piloted and existing programs are improved and replaced based on customer feedback, research, lessons learnt, or as more cost efficient options become available.

Baseline forecast Represents a ‘do nothing’ situation. That is, demand if no water conservation programs were implemented.

Building and Sustainability Index (BASIX)

State wide planning policy that ensures new residential dwellings are designed to use less drinking water and be responsible for fewer greenhouse gas emissions by setting energy and water reduction targets. BASIX also applies to extensions and alterations of existing residential properties.

Business water efficiency programs Programs that target demand in all non residential customer sector.

Economic level of leakage The point where the cost of leak reduction activities equals the savings from reduced demand.

Long term water saving rules In September 2007, the NSW Government announced the long-term water saving rules. These rules set out permanent, sensible practices to save water including:

� Sprinklers and watering systems may only be used before 10am and after 4pm on any given day. This avoids the heat of the day. The only exception is that children are allowed to play under a sprinkler on a hot day.

� Hand held hoses anytime must be fitted with a trigger nozzle, including to wash vehicles. Hoses must not be left running unattended.

� No hosing of hard surfaces such as paths or drives except for reasons of health and safety, emergency or construction activity and such hosing can only be carried out using a trigger nozzle or high pressured cleaning device.

� Fire hoses may be used for fire fighting activities only.

These long-term rules will be introduced following the lifting of the current temporary restrictions and will remain in place regardless of the dam levels.

Residential water efficiency programs Programs that target demand in the residential sector.

Sewer mining The extraction of wastewater upstream and/or downstream of a Sewerage Treatment Plant (STP) for treatment and reuse as recycled water.

Stormwater harvesting The collection, treatment, storage and use of stormwater runoff.


SW51 09/08

Water Conservation Strategy Includes leak reduction programs, demand management and recycling projects targeting the residential, business and industrial sectors.

Water Efficiency Labelling Scheme National scheme that involves mandatory rating and labelling for a range of appliances and fittings.

Water Efficiency Standards National scheme that sets minimum water efficiency standards for a range of appliances and fittings.

Weather Correction The removal of year to year variation in consumption relating to changes in weather conditions.


SW51 09/08

Appendix 14 List of acronyms and units AGO Australian Greenhouse Office

AWA Australian Water Association

AWWARF American Water Works Association Research Foundation

BOO Build Own Operate

BASIX Building Sustainability Index

CSIRO Commonwealth Scientific and Industrial Research Organisation

DECC Department of Environment & Climate Change

DET Department of Education and Training

DEUS Department of Energy, Utilities and Sustainability

DIY Do-it-yourself

DoH NSW Department of Housing

DWE Department of Water and Energy

ELL Economic Level of Leakage

EUM End Use Model

EDC Every Drop Counts

hh Household

IPART Independent Pricing and Regulatory Tribunal

NSW New South Wales

STP Sewage treatment plant

SCA Sydney Catchment Authority

SOPA Sydney Olympic Park Authority

UTS University of Technology, Sydney

WELS Water Efficiency Labelling and Standards

WES Water Efficiency Standards

WERF Water Environment Research Foundation

WSAA Water Services Association of Australia

m metres

L litres

kL kilolitres = 1 x 103 litres (‘one thousand litres’)

ML megalitres = 1 x 106 litres (‘one million litres’)

GL gigalitres = 1 x 109 litres (‘one billion litres’)


SW51 09/08

Appendix 15 References

Australian Government National Water Commission, Community Water Grants Programme, Viewed 10 July 2008, < http://www.nwc.gov.au/agwf/community_water_grants.cfm>.

Department of Environment and Climate Change, Climate Change Fund, viewed 9 July 2008, <http://www.environment.nsw.gov.au/grants/ccfund.htm>.

Department of Environment, Water, Heritage and the Arts, Water for the Future: National Rainwater and Greywater Initiative, viewed 10 July , < http://www.environment.gov.au/water/programs/nrgi/index.html>.

National Water Commission (2008) National Performance Report 2006-2007 urban water utilities. Water Services Association of Australia, Victoria, Australia.

NSW Government (2006) 2006 Metropolitan Water Plan, April 2006.

Sydney Water (2003) Water Conservation and Recycling Implementation Report 2002–03, August 2003.

Sydney Water (2004) Water Conservation and Recycling Implementation Report 2003-04, August 2004.

Sydney Water (2005) Water Conservation and Recycling Implementation Report 2004–05, August 2005.



Sydney Water Operating Licence under the Sydney Water Act 1994.

Documents

Water Conservation and Recycling Implementation Report · response time to main breaks. In 2007-08 detection and repair work was completed in 137 supply zones covering 19,600 kilometres