Full Inquiry Needed Into Costly, White Elephant Tillegra Dam

Friday, 26 September 2008 22:55

TEC Urban Campaigner Mr Leigh Martin said “Hunter Water is proposing a massive price shock for water users in the Hunter without being required to show that the dam is even needed. It is clear that a full and independent review of the need for Tillegra Dam should be conducted as part of the current price review.”

Hunter Water’s submission to the Independent Pricing and Regulatory Tribunal (IPART) review of Hunter and Central Coast water prices for the next four years proposes massive price rises to cover Tillegra Dam costs.

However the terms of reference set by the NSW Government for the review prevent the Tribunal from investigating whether the dam is actually required. 

“With Hunter Water storages close to full despite the worst drought on record and Gosford-Wyong water securing its supply through the Mardi-Mangrove pipeline any proper investigation would conclude that Tillegra Dam is an expensive and environmentally damaging white elephant,” Mr Martin said. 

TEC has warned that Hunter Water’s proposed price increases will be the first of many needed to cover the costs of building and operating Tillegra Dam. 

“This is only the beginning for Hunter Water customers. The experience with Sydney’s desalination plant shows that more and more price rises will be needed as construction and operating costs inevitably blow out. It is clear that Hunter Water Customers will be feeling the financial pain for years to come if Tillegra Dam is approved,” Mr Martin said.