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.

Tuesday, February 03, 2009

Anna Bligh readies SEQ water grid for privatisation ...

... using 'take or pay' clauses to underwrite profitability of SEQ water companies.

The State Government's Swanbank power station will spend up to $20 million in the next 10 years on recycled water it does not want or need.

CS Energy, which operates the station west of Brisbane, has what it describes as an "onerous" take-or-pay 10-year water purchase agreement with the government-owned South East Queensland Water Grid Manager.

The result is a long-term water-supply contract that CS Energy said in its latest annual report was "in excess of both the current and anticipated future operating requirements of the Swanbank power stations".

"A ($20.6 million) provision for an onerous contract has been recognised for that portion of the fixed charge that relates to water currently identified as excess to operating requirements," the report said.

See- Courier Mail - Swanbank charged $20m for unwanted recycled water.

A take or pay clause that obligates Swanbank to pay for water that it will never need.

So the government-owned Swanbank subsidises the profitability of the SEQ water grid.

If anyone thought the privatisation of water wasn't on the cards, they need to think again ...


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