New standards needed for Hunter Water

Thursday, 15 November 2001 10:00

TEC will tell a hearing of the Independent Pricing and Regulatory Tribunal (IPART) on Tuesday that the Operating Licence for HWC (the Corporation's main regulatory instrument) should include similar standards to those set for Sydney Water following the 1998 Sydney water crisis and require the corporation to fix ongoing problems.

The licence has never been subject to an independent and public review since its grant in 1991.

Total Environment Centre(TEC) Urban Campaigner Mr Leigh Martin said "Hunter Water customers are entitled to expect the same level of service and environmental performance as customers of Sydney Water. They are also entitled to expect that they will not be subjected to problems such loss of supply or sewerage overflows on an ongoing basis".

The licence places no limits on 'repeat events' (where a customer is subjected to an event such as sewerage overflow or loss of supply more than once in any year) meaning that ongoing problems, such as continual sewer overflows in Swansea, are not reflected in performance statistics.

HWC's performance in promoting water conservation through non-price mechanisms and reducing leakage from the water supply system has also been found to be inadequate.
A further problem is that Hunter Water's Customer Contract, the main instrument for protecting the rights of customers, is hopelessly outdated and does not reflect current standards for public utilities.

"The Customer Contract places much more emphasis on Hunter Water's own rights and the obligations of its customers than it does on what customers are entitled to expect from the corporation", Mr Martin said.

The term of the new licence is likely to be 5 years, meaning that unless improvements are made now HWC will fall further behind standards set for other water agencies such as Sydney Water.

"The licence review presents a vital opportunity for the community to raise standards and improve performance of the water monopoly business. A major overhaul is needed now if Hunter Water is to become a truly modern customer focussed and environmentally responsible corporation", Mr Martin said.