Burst water mains in Adelaide: SA Water boss vows to clean up compensation chaos

SA WATER’S “horrified” board has ordered it to consider compensating residents flooded by burst water mains and claiming money back from their insurers.

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SA WATER’S “horrified” board has ordered it to consider compensating households devastated by burst water mains, and then claiming money back from the residents’ insurers.

Chairman Lew Owens told The Advertiser he had initiated a review to reverse the way damages cases are handled.

“We are horrified and concerned at the impact on everyone who has had their houses flooded,” Mr Owens said.

“You wouldn’t wish that on anyone and we’re doing everything we can to assist within the rules that exist at the present time. Indeed, we’re looking at the rules to see if things can be changed.

“I’ve asked for a review to see if we can be more on the front foot, be the first one there to respond are then claim the money back from insurers after the event.”

SA Water has been criticised for stepping back during a spate of water main bursts in the past few weeks.

There have been at least five incidents in the past week — including Greenacres, Hectorville and Klemzig on Wednesday — following a series of problems last month.

Mr Owens said SA Water had to balance helping people with not taking on a liability that would force up water prices for everyone.

“We don’t want to be suckers,” he said. “We don’t want to let insurance companies off the hook. I don’t know what the outcome of the review will be but we do want to look at how we can be more helpful to people in terrible times.”

Mr Owens was speaking as he announced Roch Cheroux, head of French company Suez Environnement in South East Asia, had been recruited as chief executive.

Carpet removed after a burst water main flooded this home in Paradise last week. Picture: Matt Loxton

Mr Cheroux will replace John Ringham, who decided last year to leave SA Water this July.

Mr Owens was previously head of WorkCover, which used a model of paying injured workers upfront and then pursuing insurers.

Linton Schiller, a resident of Willow Dr, Paradise, said he would be grateful for any cash support.

“We have no food ... no shoes, I’m wearing the sneakers I had on when it happened, it’s little things like that,” said Mr Schiller, whose son Michael’s car was submerged by the floods.

“It’s certainly better than $100 gift vouchers, (SA Water) was giving out.”

Mr Schiller, 60, expects soon to receive a small amount from insurers for short term needs.

Neighbour Jane Lyons, who moved to temporary accommodation, has received some payment from insurers.

The extraordinary scene at Willow Dr, Paradise, last week, where two mains burst in four places, flooding homes and cars. Picture: Russell Millard

“(However) if you don’t have insurance, a lump-sum payment would be fantastic,” she said.

Mr Owens blamed the water bursts on heavy downpours in midsummer, which affected the clay soils of Adelaide.

SA Water had been searching the globe for a way to predict pipeline bursts.

“There is no technology,” he said.

“We keep looking for it and there are a number of research programs — but you can’t do it.”

Many pipes which burst weren’t particularly old.

“We’re at the mercy of nature,” he said.

Mr Cheroux was born and educated in France, but previously worked in South Australia for Degremont which built water treatment plants in the Riverland.

He then led French involvement in the consortium which built the Adelaide Desalination Plant before his company moved him to Sydney then Singapore.

Damage to cars and gardens after the floods in Paradise. Pic: Doug Robertson

Mr Owens said Mr Cheroux understood the SA, national and international water sectors.

“He has demonstrated a solid track record of driving efficiency and delivering service

excellence,” he said.

Water Minister Ian Hunter said he was sure Mr Cheroux “will serve South Australians well”.

Mr Cheroux could not be contacted yesterday but said in a statement he was honoured.

“We have a wealth of technical and operational knowledge to draw upon from within the business, and we will continue to strive to be a more customer-focused organisation,” he said.

Mr Ringham has been chief executive since late 2010 and at SA Water for 16 years.

He was paid about $500,000 a year. Mr Cheroux will be paid a similar amount.

In 2014-15, SA Water made an after-tax profit of $197 million on revenue of $1.4 billion and assets valued at $14 billion.

It paid the SA Government a dividend of $184 million.