Wonthaggi desalination plant fault could lead to water bill bonus for Victorians

A FAULT affecting power at the Wonthaggi desalination plant is yet to be fixed, casting doubt on the state’s first water order being delivered by June.

Victoria's Desalination plant in Dalyston. Picture: Jake Nowakowski

A FAULT affecting power at the Wonthaggi desalination plant is yet to be fixed, casting doubt on the state’s first water order being delivered by June.

Households across Melbourne would actually save tens of millions of dollars in payments to the plant’s operator Aquasure if an electrical failure means 50GL ordered can’t be delivered.

Under the multi-billion dollar desal contract, a failure to produce an order would mean the company loses $27 million paid for the water but also a percentage of service payments that cost Victorians about $1.8 million a day.

It is understood this could see more than $100 million clipped from payments to Aquasure over time if water doesn’t flow soon.

Those savings would potentially reduce Melbourne Water customers’ bills if passed back to them by the Andrews Government.

Water Minister Lisa Neville said specialists had been flown in from overseas by Aquasure, and that she was confident the contracted water would be delivered by June 30.

“I have made it clear that the government expects the 50 GL of desalinated water to be delivered by June 30, 2017, in keeping with the contract with the government,” she said.

“I am regularly meeting with the parties involved and Aquasure has assured me that the water will be ­delivered within the agreed time frame.

“Households will not receive additional charges on their water bills for the water order until the water is delivered.”

Water storages are currently 68.9 per cent full, above the 66.5 per cent they were at last year. While there are still some hot weeks ahead this summer, levels will not drop to critical points before the extra 50GL is delivered — assuming the plant becomes operational.

Opposition water spokesman Peter Walsh said last year’s decision to order water was wrong.

“It’s nearly summer’s end and the water storages are still more full than this time last year, but Daniel Andrews is determined to make Melburnians pay $27 million for a water order they don’t want or need,” he said.

He said the original deal struck between operators and the government was bad for households who were now coughing up more and more on their bills.

“All Daniel Andrews’ desal white elephant has done so far is pump up water bills and flush Melburnians’ money down the toilet,” he said.

“Given the plant is inoperable, why are Melbourne water customers paying $1.8 million a day for a plant that doesn’t work?”

Technical experts from overseas are still conducting tests on the faulty equipment at the point where power enters the plant.

The issue began on December 11 during the start up process, and activated a circuit breaker.

The government will have to advise Aquasure if it wants to order another 50Gl for next financial year, by April 1.

However, it is unclear whether this time frame could be altered if the plant is not operating.

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