The 4350water Blog highlights some of the issues relating to proposals for potable reuse in Toowoomba and South East Qld. 4350water blog looks at related political issues as well.

Monday, February 20, 2006

Why water is great business ...

Buried at the back of the Toowoomba City Council's NWC application are some interesting statistics.

In a section dealing with system leakage detection (estimated at 13.5% to 15% of total water production), it states:

"- the cost savings in lost production at $0.50/kl is $500,000/y
- revenue loss at $1.00/kL is $1,000,000
".

So, Toowoomba City Council is saying it costs 50 cents to deliver a kL of water and they sell it to Toowoomba ratepayers at $1.00 a kL.

A 100% mark-up! That's good business by any standard.

No wonder they want to make more water using recycled sewage and sell that to ratepayers. Certainly beats buying it from third parties where you can only add a margin. A 100% mark-up is much better.

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