A commitment to make the Adelaide Desalination Plant carbon neutral has added millions in extra costs.
Confidential SA Water documents show the “clean green” commitment would cost $354 million over 20 years for the original 50GL plant - the plant was subsequently doubled in size to be a 100GL plant.
The documents note the estimated cost is not indexed and “may be expected to increase over time”.
The Opposition seized on the figures to warn households face an extra $135 a year on their SA Water bills to meet the cost, in addition to the hefty rises to pay for the $2.2 billion cost of the project.
However SA Water executives dismissed the claim, saying the carbon neutral cost was factored into the annual operating costs of the plant, which have already been approved by the State Government.
The Adelaide Desalination Project Renewable Energy and Carbon Offset Strategy Report 2008, obtained under Freedom of Information, details the total cost of purchasing carbon offsets for construction and operation, plus the use of renewable energy sources during construction and operation, in order to make the plant carbon neutral.
It does not provide a comparison of estimated operating costs if there was no carbon neutral commitment. Opposition Leader Isobel Redmond said the Government should have told the public the cost of the carbon neutral pledge.
“The report reveals that back in 2008 the incremental cost of the 50GL plant being carbon neutral was more than $354 million over 20 years and the cost is to be paid by consumers - South Australians should have been told,” she said.
“Over the 20-year life of the now-100GL ADP, that is more than $709 million extra that SA Water users will have to pay in their water bills - at least another $135 per year.
“Since Labor came to power 2002 South Australians are paying 80 per cent more for their utilities.”
SA Water chief executive John Ringham said the cost of using renewable energy to power the plant is covered under the $129.9 million annual operating cost, which is separate to the construction cost of the plant.
“SA Water has been upfront about our operating costs, which have been presented to - and approved by - the State Government and the Public Works Committee,” Mr Ringham said. “The actual cost of renewable energy is only a portion of the annual operating cost and depends on the operational capacity of the plant - the $129.9 million annual cost applies to the 100GL plant running at full capacity.
“The information referred to in the 2008 discussion paper is no longer relevant to the 100GL project.”
The first fresh water from the desalination plant is expected in late July and the project is due to be completed by December 2012.
