Water Conservation Report 2015–16

Cover page: A customer enjoys tap water after exercise SW88 11/16 © State of New South Wales through Sydney Water Corporation. This work may be freely dealt with for any purpose, other than in a product for sale.

Contents At a glance 2015–16

1

1

Introduction and regulatory context

5

Economic Level of Water Conservation

5

Water Conservation Program

5

The following tasks have been completed to date.

5

Water efficiency in 2014–15

6

Residential water efficiency

6

2

PlumbAssist

6

WaterFix

6

Business Customer Services

7

Targeting demand management programs

7

Education initiatives

8

Educational tours and excursions

3

4

5

6

8

Leak management in 2015–16

10

Factors affecting leak performance

10

Our approach to leak management

10

Active leak detection and repair

10

Improved leak/break response times

12

Pressure management

12

Infrastructure Leakage Index

12

Water recycling in 2015–16

14

Promoting and encouraging water recycling

14

Water recycling projects

14

Sewer mining

14

Private onsite reuse schemes

14

Projects planned for 2016–17

18

Water efficiency services

18

PlumbAssist

18

WaterFix service

18

Business Customer Services

18

Leak management

18

Water recycling

18

Economic Level of Water Conservation

18

Water use

19

2015–20 Operating Licence

19

Key factors affecting water use

19

Reporting requirements

20

Correcting for weather

22

Calculating the economic level of leakage

23

Estimating leakage

24

Water savings and program investment in 2015–16

25

‘Millenium Drought’ Savings achieved between June 1999 to June 2011

26

Glossary

29

List of acronyms and units

30

At a glance 2015–16 Total water use (the water usage level) in 2015–16 was 293 litres per person a day (LPD)1, well below our Operating Licence target of 329 LPD. This includes water used by the residential sector, businesses, industry and for irrigation. This is lower than the 2014–15 figure of 295 LPD and reflects a behavioural shift in how customers use water. It also shows a decline in the use of drinking water by businesses and industry and that water efficient operations have become common place.

Water efficiency makes Sydney Water a resilient business Water use has remained at record lows since 2008. Our customers have adopted water efficient practices as part of their everyday life. Managing water demand is a cost-effective way to maintain a sustainable supply-demand balance. We have been developing decision making tools to help us determine when, where and how to best invest in demand management. Lower demand means that we can accommodate more customers without upgrading our networks. Saving water, particularly hot water from showers also leads to less energy use. Our customers value our help in managing their water use so we continued our assistance programs in 2015– 16.

Figure 1 — We are looking to trial a behaviour change program to reduce what we spend to service new customers.

Trends in customers’ water use show that people have adopted our water efficiency programs. Regulatory measures such as the NSW Building Sustainability Index (BASIX) for new homes and changes in the market for water efficient appliances have embedded ongoing water savings.

1

All LPD numbers are weather corrected unless noted otherwise. Appendix 2 lists LPD in 2014–15 both corrected and uncorrected for weather.

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Our first water efficiency initiatives were popular with customers and made significant water savings. These programs offered residential customers rebates to install efficient appliances and fixtures in the home. The high level of participation means that targeting all customers in the same way is now less effective. We are rethinking how we run water efficiency programs in the future so that they continue to engage customers and drive water savings.

us to help with managing their water use. We now consider a broader range of costs and benefits for water efficiency using our decision framework. Developing programs that target specific geographic areas or customer segments will be a better way to maximise their effectiveness and benefits. The framework helps to determine the optimum level of investment in:

Low water use is beneficial to the supply/demand balance. However, as demand has remained low, drought restrictions are expected to be less effective at achieving water savings in the future. We are engaging with customers to better understand how they value different water uses. We will use this in designing future demand management programs, including options for future water restrictions during severe drought. Some uses such as irrigation of parks and playing fields have significant liveability benefits and industries such as nurseries are dependent on water for their survival. This needs to be considered in all future demand management programs.



better understanding how our customers use water



programs that customers can participate in



promoting our activities to customers and educating them about water use



activities within the water industry that show leadership or advocate efficient water use.

In accordance with Sydney Water’s 20152020 Operating Licence, we are developing an Economic Level of Water Conservation (ELWC), which will cover areas such as water leakage, water recycling and water efficiency activities. This project will be completed by December 2016, and will guide our future investment in water conservation activities.

We recognise the important role that water has in supporting the liveability of our cities, and we put our customers’ at the heart of everything we do. Customer research tells us that the community expects

360 340

Water Wise Rules

380

Mandatory restrictions

Pre- restrictions

400

Voluntary restrictions

420

Water usage level target 329

320 300

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

280

1999

Water supplied per person per day (litres/person/day)

440

Year ending June

Figure 2 — Daily water use in greater Sydney was 293 litres per person a day in 2015-16

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Total water use for the year

Water saved in homes

Total water use2 for 2015–16 was 529,939 million litres compared to 515,834 million litres in 2014–15. This year’s water use is similar to 2013-14 despite a 6 per cent increase in population. It is also similar to the total water use in 2005-06 when Level 3 water restrictions were in place. Currently, residential demand accounts for almost 75% of metered water use. Non residential - use is about 25% and includes industrial, commercial and government properties.

In 2015–16, Sydney Water continued the WaterFix Program to provide customers with a choice of services to suit their individual needs. This service includes replacing showerheads, toilets and taps, and repairing leaks. We offered the service to residential customers at cost recovery rates. Sydney Water is committed to supporting customers in hardship. We continued PlumbAssist in 2015–16, to help customers experiencing financial hardship to reduce their debt by identifying high water use and addressing its causes. The service provides essential and emergency plumbing services for customers who cannot afford it.

Water conservation In 2015–16, Sydney Water continued a range of initiatives to meet water conservation requirements in our Operating Licence. These included: 

undertaking water efficiency initiatives with residential customers



reducing leaks from Sydney Water’s and customers’ pipes



providing recycled water to households and businesses.

While the PlumbAssist program is ongoing, we have not yet accumulated enough data to accurately calculate water savings. We are confident that tailoring programs to individual customers’ needs represents improved value for customers.

700

Total bulk water supplied (GL)

650

600

550

500

450

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

400

Year ending June

Figure 3 — Total water use in Sydney was around 530 billion litres a year in 2015–16. This is about the same volume used in 2013-14, despite a 6% increase in population.

2

Total water use includes potable water and unfiltered water provided for industrial use in the Illawarra. Recycled water is not included

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Water saved by businesses Sydney Water’s Business Customer Services team continues to provide a holistic service to business customers. By bringing together customer connection services, trade waste, backflow prevention, compliance and water efficiency assistance into one service area we can look at a business’ water use as a whole. Business Customer Representatives have monitored customer’s water consumption and discussed further water efficiency initiatives as part of Relationship Management Meetings. Business customers have maintained their water consumption and accounted for any high water use throughout 2015-16. To date, no new water savings have been recorded but customers are continuously looking for feasible ways to continue to be water efficient.

Water saved by reducing leaks Sydney Water has continued to manage leaks by proactively finding concealed leaks, maintaining fast response times to reported leaks and breaks, reducing pressure, and renewing water mains. Water leakage from

the drinking water supply system (the water leakage level) in 2015–16 was 103 megalitres a day (MLD), well below our Operating Licence target of 121 MLD. In total, this program saves over 30 billion litres a year.

Recycled water In 2015–16, we continued to operate 23 recycled water schemes. We also encourage businesses to recycle where it is cost effective. Recycled water is used for: 

irrigation



industrial/business processes



Residential outdoor use



toilet flushing.



the environment.

We saved about 14 billion litres of drinking water in 2015–16 through recycling 44 billion litres. Not all recycled water use replaces drinking water. Some schemes previously used water from the river before recycled water was available.

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1 Introduction and regulatory context A new Water Conservation Program and Economic Level of Water Conservation Sydney Water’s new Water Conservation program will be developed by September 2017. This will set out the water efficiency, leak reduction and water recycling programs and projects that we believe have the most potential in the future. The Economic Level of Water Conservation methodology which will be complete by December 2016 will determine the optimum level of investment in water efficiency, leak reduction and water recycling and how this changes with water scarcity. In the interim our water use target of 329 litres per person a day (LPD) remains. In 2015– 16, water use was 293 LPD – well below the target and slightly lower than last year.

Each year, we report on how we conserve water in accordance with Section 3 of our Operating Licence 2015–2020. Appendix 1 outlines how this report meets specific requirements in the Operating Licence reporting manual.

Economic Level of Water Conservation In 2015 the Independent Pricing and Regulatory Tribunal (IPART) approved a report outlining the approach and principles that Sydney Water will use to develop a methodology to determine its Economic Level of Water Conservation (ELWC). An industry reference group including Hunter Water, the Metropolitan Water Directorate and Water NSW meets periodically to provide guidance to the project. In April 2016 Sydney Water released an issues paper to seek feedback from stakeholders on the various methodology options. Sydney Water is now incorporating these comments into the draft methodology. A public forum will held around October 2016 to consult with interested parties around the proposed methodology. IPART must approve a final methodology by 31 December 2016.

Water Conservation Program The Water Conservation Program (WCP) is a rolling program of initiatives that can be implemented by Sydney Water with the primary purpose of reducing water use. This covers but is not limited to water efficiency, leak reduction and water recycling. The water conservation program aims to identify cost effective opportunities to reduce water use to maintain a sustainable supply/demand balance. This will be achieved through a combination of monitoring trends in demand and piloting promising projects to confirm that they will be effective. We will aim to test programs on areas where we already have challenges such as capacity constraints to achieve the objectives of the WCP while simultaneously improving system reliability and resilience at minimal cost. In this way water conservation should be viewed as part of core business rather than an add-on that we focus on during drought The following tasks have been completed to date.   

Reviewing past and present programs and potential for the future. Engaging with Australian water utilities to document current practice. Environmental scanning of recent technological developments.

The final Water Conservation program will be delivered by September 2017.

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2 Water efficiency in 2015–16 Looking for the water saving opportunities of the future Sydney Water’s demand management decision framework has identified the Nepean Water system in Western Sydney as a suitable area to conduct a behaviour change trial. Our residential water efficiency services in 2015–16 included PlumbAssist and WaterFix. We continue to provide a ‘one-stop-shop’ for business customers through our Business Customer Services team. It connects new business customers to our services, and works with businesses on various aspects of water management, including water efficiency.

Residential water efficiency PlumbAssist PlumbAssist is offered through our BillAssist program. It provides a tailored and comprehensive plumbing service for customers experiencing financial hardship. Customers having difficulties paying their bills are referred to BillAssist by the Sydney Water Contact Centre or external community service agencies. Other customers identified with high and/or long-term debt are proactively offered assistance by our BillAssist team. BillAssist staff offer customers case management and a range of assistance options. As part of the assistance package, staff do an initial plumbing assessment which includes a check for high water use or a sudden increase in use. Eligible customers with high water use or who cannot afford to fix essential plumbing services are then referred to PlumbAssist. PlumbAssist aims to rectify problems customers may have with: 

high water use



wastewater systems



hot water systems.

Plumbers may also:

financial stress for vulnerable customer groups. In 2015–16, 329 customers had a plumbing issue resolved through the PlumbAssist service. The range of services offered is similar to WaterFix, but the standard of plumbing fixtures prior to our visits is typically very poor meaning the potential for greater savings per fitting installed is higher. PlumbAssist is a carefully targeted service for the most vulnerable households so it is yet to achieve a large participant base. Savings will vary significantly from house to house due to the variety of plumbing issues repaired through the program. The program has not been running long enough to provide reliable data on water savings. As we develop the service and more customers participate, we will have accurate estimates of water savings. Preliminary estimates suggest the water savings from the program in 2015-16 was over 8.9 million litres. This estimate is not included in the calculation of total water savings. Sydney Water spent $926,693 in 2015–16 to deliver PlumbAssist.

WaterFix WaterFix allows customers to choose the type of plumbing service they need to improve water efficiency in the home. Costs to the customer vary, depending on the type of service selected.



fix tap and toilet leaks



replace taps



find and repair concealed leaks



replace inefficient toilets

In 2015–16, the WaterFix service offered:



replace failed hot water systems.



all types of tap and toilet leak repairs



installation of WELS (Water Efficiency Labelling Scheme) 3-star showerheads

PlumbAssist reduces water waste and the cost of future water bills, and alleviates

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

installation of WELS 4-star dual flush toilets



we need a full year of water use data from the service to estimate savings



installation of WELS 3-star flow regulating aerators or WELS 4-star in-body flow regulators.



more customers are needed to improve the accuracy of savings estimates.

For 2015–16, we charged a base fee of $99 for all WaterFix appointments. The rest of the charge varied, depending on the number of services provided. For example: 

each tap and/or toilet leak repair costs $33



installing a WELS 3 star rated showerhead (standard range) costs $55



installing a WELS 4 star-rated dual flush toilet (standard range) costs $385.

Mid-range and premium toilet suites were also available at a higher cost. A surcharge is applied for Saturday appointments. The number of shower, toilet and leak-related services we provided to customers in 2015– 16 is listed in Table 1.

Sydney Water invested about $295,621 in 2015–16 delivering the WaterFix service. The service was provided to our customers at commercial rates. This meant the program made a small profit in 2015–16.

Business Customer Services Businesses use about a quarter of the water we supply to customers each day. Business owners who reduce water use often find they also save money in reduced wastewater, energy and chemical treatment costs. Our Business Customer Services help customers achieve best practice water and wastewater management for their business. This includes a focus on water efficiency. We help businesses to: 

benchmark water use



conduct water use monitoring

77



complete water audits

Toilet related

256



identify water saving opportunities

Leak repairs

852



roll out water saving measures.

WaterFix services Shower related

Table 1 — Types of services completed for WaterFix participants in 2015–16

Initial estimates of potential water savings from the WaterFix service are based on a small number of properties.

We publish a range of information on our website to help business customers be water efficient, including: 

best practice guidelines to achieve water efficiency

Based on a preliminary analysis of 469 participants, we estimate WaterFix saved about 27,000 litres for each property serviced in 2015-16, representing a saving of about 12.6 million litres. This estimate is not included in the calculation of total water savings.



case studies



water efficiency benchmarks for different types of businesses



a do-it-yourself tool to save water in your business.

This is higher than the average water savings from Sydney Water’s previous WaterFix Program and Toilet Replacement Program. These programs saved about 21,000 and 24,000 litres per property each year, respectively.

Targeting demand management programs

These estimates are only preliminary because:

They will allow us to target cost effective programs in areas where they make sense, targeting areas where we can, for example save more water, reduce energy used for pumping, or defer infrastructure enlargement. We will also be able to roll out the right programs to the right customers, looking at



water savings from the previous program are different to this new service

We have been developing decision making tools to help us determine when, where and how to best invest in demand management.

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things like dwelling types, suburb profiles, common uses of water, and customer preferences.

Education initiatives We invest in and support education programs that promote and integrate water efficiency – with a broader focus on the urban water cycle. Initiatives are guided by the Sydney Water Education Plan 2012–16. The plan’s objectives are to:  increase public understanding of the urban water cycle, how it works and what role we all play in it. Build awareness of Sydney Water; who we are, what we do and why  influence attitudes and behaviour to increase customers’ value of water and its sustainable use to better prepare people for making future decisions about the value of water and its sustainable use. Our education initiatives target:  primary and secondary teachers, tertiary lecturers and government education officers  students from primary and secondary schools, TAFE colleges and universities  other key government and nongovernment stakeholders (eg local councils and environmental educators)



local communities living or working near priority assets or capital works.

Educational tours and excursions We run educational tours at seven operational sites, which include water filtration, water recycling and wastewater treatment plants and an advanced water recycling plant. We also have a specially designed Water Recycling Education Centre at St Marys. Our tours promote responsible water use and efficiency and we engaged with people from secondary schools, TAFE colleges, universities, technical and international delegations, and other key stakeholders. In 2015–16, over 4,330 people participated in a treatment plant tour and presentation. About 1,260 people visited the Water Recycling Education Centre to learn about recycling, sustainable water management and water recycling treatment technology and innovation. We do not currently measure water savings from our education programs.

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Figure 4 — Water efficiency promotion is incorporated into our school tours.

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3 Leak management in 2015–16 Leak management is business as usual We estimate average water leakage (Operating Licence System Performance Standard WC2) for 2015–16 to be 103 million litres a day, which is within our Operating Licence target range. In 2015–16 we managed leaks cost-effectively by proactively finding concealed leaks, maintaining fast response times to reported leaks and breaks and renewing water mains. Our leak management activities save over 30 billion litres of water a year.

Factors affecting leak performance Sydney Water owns and maintains about 22,000 km of pipes that deliver water to customers. We also maintain the 1.9 million connections to customer properties. All pipe networks are vulnerable to leaks and breaks. Water mains leak or break for a number of reasons and age is usually not the determining factor. Many things can cause leaks, such as:

leakage there can be a delay of several months before there is a noticeable effect. Sydney Water has reduced breaks by 50% over the last 10 years. Over the last three years we have tried to achieve a balance between keeping costs low for customers and meeting our target. Exceeding our target (or keeping leakage too low) can be perceived as ‘gold plating’ because it impacts customer bills. We aim to manage to our target and provide value to customers.



deteriorating joints and fittings

Active leak detection and repair



ground movement cracking pipes



changes in water pressure



changes in rainfall and temperature.

Active leak detection and involves scanning for concealed leaks in buried pipes. We promptly repair pipes where leaks are found. Leaks are generally found in water mains, connections to the mains and in fittings such as hydrants and valves. Active leak detection and repair is a continuous process. Without it, leaks from pipes would increase each year.

Our approach to leak management Sydney Water implements a number of programs to reduce the likelihood of leaks and the amount of water lost when they happen. These programs include: 

Active leak detection and repair.



Pressure management.



Optimised response times to repair leaks and breaks.



Improved flow metering.

We also have an ongoing Pipe Renewal Program. By replacing pipes that have reached the end of their life, this program aims to minimise leaks and breaks. We monitor leakage on a quarterly basis and adjust our programs in response to these results. When we increase the amount of active leak detection in response to increased

All 180 of Sydney Water’s supply zones and the new pressure managed zones are prioritised for active leak detection and targeted accordingly. Sydney Water has worked with the broader water industry to improve leak detection techniques. We inspected 9,024 km of pipes in 2015–16 (covering all 429 pressure zones which are prioritised for active leak detection and targeted accordingly). Since the Active Leak Detection Program began around 200,000 kilometres of pipes have been inspected. It is estimated that this program achieves more than 20 billion litres of water savings a year. Sydney Water spent almost $1.2 million on active leak detection and repair in 2015–16.

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Figure 5 — Active leak detection is a key part of maintaining low levels of leakage.

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Improved leak/break response times

3.1

We rely on customers and staff to report leaks from buried pipes that reach the surface. Optimising Sydney Water’s response time to repair these leaks reduces water loss. We prioritise the response to reported leaks based on the volume of water that could be lost.

Our Operating Licence sets an upper limit for water leakage of 121 million litres a day. Average water leakage for 2015–16 is estimated to be 103 million litres a day which is within our target range.

Pressure management



leak rate

We aim to supply water at a pressure suitable for households and businesses, while reducing leaks and breaks. However, in some areas water pressure remains unnecessarily high. High pressure in pipes can cause them to break and can cause problems with household appliances such as hot water systems.



number of bursts, breaks and leaks



average time to repair bursts, breaks and leaks



length of mains inspected



economic level of leaks.

The Pressure Management Program involves installing pressure-reducing valves in highpressure areas whilst maintaining pressure greater than15 metres head. This lowers water pressure in the system and also reduces main breaks and leaks. We implemented about 179 pressure reduction schemes between 2005 and 2013. We estimate that the program saves seven billion litres a year in reduced leaks from the network. On average, each customer that has their pressure reduced saves an extra 3,900 litres a year. In total, pressure management saves about 10 billion litres a year. The Pressure Management Program was completed in September 2013. In total the seven year program spent $72 million. A quarter of Sydney Water’s network is now pressure managed.

Infrastructure Leakage Index The Infrastructure Leakage Index (ILI) measures how effectively infrastructure management can reduce leaks. According to leakage experts, it is the best performance indicator for real loss management.

Key leak management statistics

When we review our leak management, we look at:

See Appendix 3 for an explanation on how we calculate the economic level of leakage Statistic

Value

Leakage

103 ML/day

Number of bursts, breaks and leaks in 2015-16 (low priority)

3,115

Average time to repair water main breaks (low priority)

154 hours

Number of bursts, breaks and leaks in 2015-16 (high priority)

9,945

Average time to repair water main breaks (high priority)

32 hours

Length of mains inspected in 2015-16

9,024 km

Economic Level of Leakage (ELL)

115 ML/day

Infrastructure Leakage Index

1.3

Table 2 — Key leak management statistics 2015-16

Costs and savings from leak management programs in 2015–16 are included in Appendix 5

The ILI includes bands from A (reflecting best practice) to D, with recommendations for both developed and developing countries. Sydney Water’s ILI of 1.3 is in the top band (Band A) and compares well against other developed countries. By world standards Sydney Water rates in the top 10% of water utilities for minimising leaks.

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Table 3 lists the reported volume of water leakage between 2010–11 and 2015–16. Year

Water leakage (ML/d)

2010–11

106

2011–12

115

2012–13

120

2013-14

107

2014-15

99

2015-16

103

Average

108

Table 3 — Water leakage 2010-2016

We are also investigating ways to encourage public reporting of leaks, as anecdotally, we believe the reporting of small leaks has reduced since the drought.

Figure 6 — Sydney Water has a number of programs to reduce the likelihood of leaks and the amount of water lost when they happen.

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4 Water recycling in 2015–16 Enabling others to implement recycled water In 2015–16 we recycled close to 43,341 billion litres. Our planners are looking to future recycling schemes to support drought proofing and delaying network amplifications. We take an advocacy role in facilitating third party recycling schemes, sharing knowledge and participating in research to promote water recycling.

Promoting and encouraging water recycling Water recycling is vital to securing the water supply for greater Sydney and improving the environment. We encourage water recycling where it can replace drinking water, such as:    

green space irrigation industrial/business processes residential outdoor use toilet flushing.

Our approach includes: 



operating our Water Recycling Education Centre to educate people on water management, with a strong focus on water recycling

providing guidelines and documents for developing recycled water sources on our website.

Water recycling projects We operate 23 recycled water schemes. We also provide recycled water for use at our own wastewater treatment plants. See Table 4 for details of our recycled water schemes, including the recycled water volumes and how much drinking water this saves each year. Over the past year we have also: 

signed two new sewer mining agreements with third parties



continued to consult with stakeholders on potential recycled water schemes.

Sewer mining considering water recycling as an option to service growth, where it is financially viable



allowing external parties to develop their own water recycling and sewer mining schemes



engaging stakeholders and the community about future water recycling opportunities



initiating and participating in research to improve the economic assessment and development of business cases for recycling schemes





investigating current perceptions of recycled water, pricing and governance arrangements and the role online and social media can play in engaging the Australian public in supporting (and paying for) recycling

Sewer mining is the process of tapping into a wastewater system, (either before or after the wastewater treatment plant), and extracting wastewater, which is then treated on-site and used as recycled water. There are currently eight sewer mining schemes operating in Sydney Water’s area of operations. These schemes are owned and operated by organisations including councils, golf clubs and commercial building owners. In total these schemes produced over one billion litres of recycled water in 2015-16.

Private onsite reuse schemes There are eight private onsite reuse schemes currently in operation. Recycled water is produced by capturing, treating and re-using wastewater from a site’s buildings or facilities. This includes Sydney Water’s head office building at 1 Smith Street, Parramatta. Page | 14

Recycled water volumes from these schemes are not reported to Sydney Water.

Figure 7 — Julian Vivekanandan, a Production Officer in front of the biological reactor at Penrith Wastewater Recycling Plant

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Recycled water scheme

Source of recycled water

Kiama Golf Course

Bombo

BlueScope Steel

Volume of water recycled (ML/year)

Water savings (ML/year)

Type of use

73

-

Irrigation, golf course

Wollongong

6,758

6,758

Industrial

Port Kembla Coal Terminal

Wollongong

346

346

Industrial

Wollongong Golf Club

Wollongong

35

35

Irrigation, golf course

Wollongong City Council

Wollongong

4

4

Irrigation, parks, sports fields

Warwick Farm Racecourse

Liverpool

97

-

Irrigation, race course

Liverpool Golf Club

Liverpool

43

32

Irrigation, golf course

Industrial Foundation3 and Rosehill Racecourse

Rosehill

1,950

1,950

Industrial, race course

Hickeys Lane

Penrith

7

-

Irrigation, parks, sports fields

Penrith Council parks

Penrith

21

21

Irrigation, parks, sports fields

Stonecutters Ridge Golf Club

Quakers Hill

-

-

Irrigation, golf course

Agricultural release

Quakers Hill

366

-

Agricultural release

Rouse Hill residential

Rouse Hill

2,489

2,489

Castle Hill Golf Course

Castle Hill

109

Dunheved Golf Course

St Marys

91

5

Irrigation, golf course

Agricultural release

St Marys

2,190

-

Agricultural release

Hawkesbury-Nepean replacement flows4

St Marys WRP5

10,837

-

Environmental flows

Elizabeth Macarthur Agricultural Institute

West Camden

92

-

Irrigation, farm

Agricultural release

West Camden

1,830

-

Agricultural release

Richmond Golf Course

Richmond

61

-

Irrigation, golf course

University of Western Sydney, Hawkesbury

Richmond

303

-

Irrigation, farms, parks, sports fields

Picton Farm

Picton

308

-

Irrigation, farm

Aorangi Farm

Gerroa

89

-

Irrigation, farm

Sydney Water reuse at wastewater recycling and treatment plants

15,241

1,966

Total for recycled water projects6

43,341

13,605

Residential, commercial Irrigation, golf course

Industrial

Table 4 — Summary of total recycled water supplied and volume of drinking water replaced by recycled water initiatives in 2015–16

3

This refers to customers provided with recycled water from the Rosehill Recycled Water Scheme. The St Marys Water Recycling Project (Replacement Flows) means that there is up to 18 billion litres more drinking water supply in Warragamba dam. However, the project does not reduce the demand for drinking water so the number is not included in the total for drinking water saved. 5 Water Recycling Plant (WRP) 6 Totals listed may not balance exactly with numbers in the table due to rounding. 4

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Figure 11 — Industrial customers use recycled water for dust suppression.

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5 Projects planned for 2016–17 Looking to the year ahead In 2016-17 we will trial a behaviour change program and work with councils to save water in cooling towers. We will also continue to manage our current recycled water schemes and leak management activities. We will continue to work with key stakeholders to develop our Economic Level of Water Conservation (ELWC) to determine our economically efficient level of water conservation.

Water efficiency services PlumbAssist In 2016–17, Sydney Water’s key focus for residential water efficiency will be our PlumbAssist program. This provides a proactive, tailored water efficiency service for high use customers in financial hardship. As we continue to gain experience with the PlumbAssist program, we will deliver the service more efficiently. Sydney Water’s estimated expenditure for PlumbAssist in 2016–17 is about $539,730. We will also look at identifying and monitoring water savings from this program to ensure we are achieving cost effective water savings.

WaterFix service In 2016–17, Sydney Water will continue the Waterfix Service and it will include other plumbing services not previously offered. This is to meet our customers demand.

Business Customer Services In 2016–17, Business Customer Services will continue working with businesses to promote sustainable water management.

We will do this by monitoring water use and working with businesses to investigate any large increases.

Leak management We will continue to manage leaks within our target range and provide value to customers. We estimate spending about $1 million on the leak management program in 2016–17.

Water recycling In 2016–17, we will continue our current schemes and look for opportunities to use recycled water in our infrastructure planning to support urban growth. We will also continue our investment in research that contributes to our understanding of the viability and support for recycled water schemes. We share this knowledge with stakeholders with an interest in water recycling.

Economic Level of Water Conservation Sydney Water will deliver a final methodology to determine its Economic Level of Water Conservation in December 2016.

Page | 18

6 Water use Per capita water use (Operating Licence System Performance Standard WC1) was below our interim target of 329 litres per person per day in 2015-16. Weather corrected water use was 293 litres per person per day and uncorrected water use was 297 LPD.

2015–20 Operating Licence In 2015–16, water use was 2937 litres per person a day (LPD). The Operating Licence 2015-2020 requires Sydney Water to maintain water use at or below the 329 LPD level until the ELWC methodology is approved by IPART.

Key factors affecting water use

The following factors continue to influence demand in 2016: 

There is a continued downward trend in average water use for non-residential properties. This reflects property growth in industrial and commercial units, which have low per property water use.



We expect residential customers to continue using water at the low levels of recent years. Population growth, residential behaviour and increased use of water efficient appliances have been identified as key drivers of future demand beyond the current licensing period.

Total water use remained below 329 LPD until 30 June 2016, well below the Operating Licence target. The way that demand is corrected for weather is explained in Appendix 2.

Water use (litres per person per day) weather corrected

In 2014-15, Sydney Water updated its forecasting model to improve its performance, considering the occurrence of extreme weather events and changes in the price of water. Results from the updated forecasting model are tracking well against actual demands when actual weather conditions are considered.

The BASIX program will continue to ensure water efficiency in new residential developments, and existing properties that have been significantly altered.

400 350 300 250 329 LPD - Operating Licence requirement

200

Forecast Actual water use

150 Year ending June 100 2014

2015

2016

2017

2018

2019

2020

Figure 12 — Total demand was below the Operating Licence target in 2015-16

7

All LPD numbers are weather corrected unless noted otherwise.

Page | 19

Reporting requirements Table 5 Reporting guide for auditors

Reporting Manual

Subject

Location in report

Water usage target- maintain the quantity of water drawn equal to, or less than, 329 LPD

At a glance, Section 6

System Performance Standard (WC1) - quantity of potable water drawn in LPD, both uncorrected and corrected for weather

At a glance, Appendix 2

Reasons for variation in performance in the preceding financial year and prior years

Section 6

List of current financial year projects, including description, estimate of costs and savings

Section 5

Update on projects in previous financial year, including description, costs and savings

Section 2, 3, 4 Appendix 5

Water leakage target- ensure that the level of water leakage does not exceed 121 megalitres per day

Section 3, Appendix 4

System Performance Standard (WC2) - amount of water leakage averaged for the preceding financial year

Section 3, Appendix 4 3,

Reasons for variation in performance in the preceding financial year and prior years

Section 3

Discuss major factors that have influenced the water leakage performance:  flow measurement  system water pressure management  the effectiveness of maintenance  any research into leakage  number of bursts, breaks or leaks and average time taken to repair them  length of mains inspected for leakage  program for inspecting and rehabilitating reservoir zones to prevent or correct leakage.

Section 3

Contribution of leak management activities to objectives and targets outlined in the Metropolitan Water Plan

Section 1

Economic level of leakage for the preceding financial year (including calculation)

Section 3, Appendix 3

Efforts to promote and encourage water recycling

Section 4

Recycling projects, water end use, annual use of recycled water in each scheme

Section 4

Contribution of recycling projects to objectives and targets outlined in the Metropolitan Water Plan

Section 1

Details of planned water efficiency projects including estimate of costs and savings

Section 5

Details of water efficiency projects in the previous financial

Section 2

requirement Clause 3.2.1

Page | 20

Reporting Manual

Subject

Location in report

year including costs and savings

Appendix 5

Contribution of water efficiency projects to objectives and targets outlined in the Metropolitan Water Plan

Section 1

requirement

Page | 21

Correcting for weather Weather correction Climatic conditions have a strong influence on the levels of customer water use, mainly because they affect residential outdoor and cooling tower use. Water use by residential customers is seasonal, with higher use over summer months and lower use when it’s colder. However, the difference in water use between summer and winter has lessened since drought restrictions were in place. Day-to-day and week-to-week changes in the weather can also cause short term fluctuations in water use, significantly above or below the seasonal trend. The purpose of weather correction (or ‘climate’ correction) is to remove, as much as we can, the impact of climatic variations. This helps us determine how much water would have been used under 'average weather conditions'. This is important, as year-to-year total demand figures may show significant variation. Weather correction is necessary to monitor and identify underlying demand trends. The weather correction model we use does not remove seasonal variations in demand. However, corrections are made for weather conditions (temperature, rainfall and an evaporation index) that are significantly above or below average for that period of the year. We reviewed our weather correction model in 2009–10. As part of the review, we improved the predictive ability of the model. We also updated documentation of the model as part of this process. In 2014-15, we re-calibrated the model to only use data post water restrictions - that is data from July 2010 to June 2015 with no restrictions, only Water Wise Rules. We continue to investigate drivers of demand including extreme weather events and continued non-average weather conditions.

Measuring against an ‘average year’ We use a model that reports ‘average year’ demand as a 365 day rolling average of water use in litres per person a day.

40

Mandatory restrictions

360

Voluntary restrictions

380

30 20

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

-20

2004

-10

280

2003

0

300

2002

320

2001

10

2000

340

Weather correction (litres per day)

50

400

Water Wise Rules

60

420 Prerestrictions

440

1999

Water supplied (litres per person per day)

Results from the weather correction model showed that we used more water than we would have done under 'average' weather conditions. The 365 day moving average of demand at 30 June 2016 was 297 LPD with a weather correction of 4 LPD8. This gives a weather corrected demand of 293 LPD for 2015–16.

Calender Year

Observed (365-day moving average)

Weather corrected (365-day moving average)

Weather correction

Zero line for correction

Figure 13 — The weather in 2015-16 meant that we used more water per person than in an ‘average’ year

8

Numbers listed may not balance exactly due to rounding.

Page | 22

Calculating the economic level of leakage The economic level of leakage (ELL) is the point where the cost of reducing leaks equals the value of the water saved. It is based on a least-cost model to determine the best rate of expenditure to manage leaks. Initially, Sydney Water determined the economic level of leakage based on the Best Practice Principles in the Economic Level of Leakage Calculation. This report was published by the Office of Water Services, the United Kingdom water industry regulator, in 2002. The methods in the report are limited to evaluating leak management programs such as active leak detection and repair. Over time, we have improved how we determine the economic level of leakage to include the effects of pressure management. This is based on International Water Association best practice, customised for Australian National Performance Reporting. The chart below is a simplified presentation of an economic level of leakage analysis. Higher rates of expenditure result in lower levels of leakage and lower rates of expenditure result in higher levels of leakage. Sydney Water will implement a mix of leak management and pressure management programs to achieve ELL and provide best value for customers.

Economic Level of Leakage

$/kL

Cost to reduce leakage Value of saved water

Leakage

decreasing

Figure 14 — The economic level of leakage (ELL)

Page | 23

Estimating leakage Sydney Water uses the water balance method to estimate average losses (leakage) from our water supply systems. The water balance is a reconciliation of the volume of water we produce with all known and estimated end uses subtracted. The remaining volume is estimated to be leakage. Sydney Water follows the methods, definitions and terminology recommended by the International Water Association (IWA). The Water Services Association of Australia (WSAA) also supports this approach. Table 6 - Water balance results 2015–16

Billed authorised consumption 473,543

Revenue water 473,543

Billed metered consumption 469,814 Billed unmetered consumption 3,729

Authorised consumption 477,419

Unbilled metered consumption 296

Unbilled authorised consumption 3,875

Unbilled unmetered consumption 3,579 Water Supplied 525,197

Apparent losses 10,113

Non revenue water 51,654

Unauthorised consumption 525 Customer meter underregistration 9,588

Water losses 47,779

Real losses 37,665

Real losses from distribution system 37,665 - 7.1%* (103 ML/D)

* Percentage in relation to base year of 2005/06 water supplied

Page | 24

Water savings and program investment in 2015–16 Table 7 lists the how much water we saved through water efficiency and recycling programs and services in 2015-16. Table 7 - Water savings and program investment in 2015–16

Program/service

2014-15

2015–16

Water savings (ML/yr)

Investment ($’000, gross)

Water savings (ML/yr)

PlumbAssist

N/A9

495

N/A10

WaterFix

N/A

22011

Investment ($’000, gross)

Water efficiency

Business Customer Service Council Partnerships

927 29612

N/A

167

0

0

0

295

13

0

14

1,200

19,455

954

N/A

16

N/A

0

0

Leak management Active Leak Detection

20,185

Pressure management

10,000

15

10,000

Water recycling BlueScope Steel

6,687

Port Kembla Coal Terminal

326

Wollongong Golf Club

40

Wollongong City Council Industrial Foundation Rosehill Racecourse

17

6,758 346

3,187

35

3

and

3,139

4 17,190

1,948

17,523 1,950

Rouse Hill residential

2,138

2,079

2,489

2,172

Other minor schemes

1,979

382

2,024

710

Hoxton Park Recycled Water Scheme

-

Total

211 43,76818 19

101 -

24,964

43,06020

25,822

9 It is not possible to estimate water savings from these programs at this time. Refer to Section 2 for a more detailed explanation. 11 This cost was recovered as part of the program. See Section 2 for a more detailed explanation. 12 This cost was recovered as part of the program. See Section 2 for a more detailed explanation. 13 $161,000 spent on Council Partnerships in 14-15. The funding for this program was transferred to City of Sydney Council in 13-14. 15 Pressure management provides an ongoing water saving. See Section 3 for a more detailed explanation. 16 Pressure management provides an ongoing water saving. See Section 3 for a more detailed explanation. 17 This refers to customers provided with recycled water from the Rosehill Recycled Water Scheme. 18 This total does not include water savings achieved from the PlumbAssist or WaterFix services. It is not possible to estimate water savings from these programs at this time. Refer to Section 2 for a more detailed explanation. 19 The total water savings does not include water savings achieved from programs that are no longer running. Water savings and investment for these past programs are listed in Appendix 6

Page | 25

‘Millenium drought’ savings achieved between June 1999 and June 2011 Sydney Water has developed a five-year Water Conservation Strategy for each Operating Licence period since 1995. In 1995, there was little information to help customers save water and no regulation to promote water efficiency. We provided information and education, and developed an extensive range of programs, rebates and incentives to help customers reduce their water use. We launched our water efficiency programs in 1999. Through these initiatives we have been extremely successful in reducing water use. Water savings grew to 121 billion litres a year by the end of June 2011 (Table 8). We expect savings from these initiatives to continue in the future, despite the completion of the programs. Water efficient fixtures and behaviours established under these programs should continue to reduce water use. The annual growth in savings from residential water efficiency programs peaked in 2006–07, then began to decline. A similar pattern occurred in the non-residential sector from 2007–08. This occurs because of a natural decline in the ability of programs to generate new savings as time passes. Interested customers are most likely to participate in the early stages of a program. As the program continues, cumulative savings continue to increase but the rate of new savings achieved each year slows down. Some programs, such as rebates for washing machines, are intentionally designed to be in place for a limited period of time. Rebates may provide enough financial incentive to encourage customers to take up initiatives they had avoided because of cost. The rebate is removed once it has achieved the desired effect. The core objective of our Water Conservation Strategy, when it was first developed, was to meet our Operating Licence water use target of 329 litres per person a day (LPD) by 30 June 2011. We have kept this objective in subsequent strategies. At 30 June 2014, water use remains well under the target and we are in a position to keep it that way. We expect use to remain below the target until the end of the current licence period. We have always reviewed and adapted our water efficiency programs to ensure they are cost effective and targeting the largest users of water. Our analysis showed that many of our water efficiency programs have reached maturity and that future efficiency gains would be best achieved through regulatory measures. After more than a decade of sustained effort, there is now reduced scope for us to run broad based water efficiency programs that will cost effectively produce additional water savings. From July 2011, Sydney Water’s water efficiency focus for residential customers has been to develop cost-recovery services and provide services to help customers experiencing financial hardship. Our approach for business customers has been to offer a holistic water management service to help them achieve best practice water and wastewater management and to work with smaller business through partnerships with Local Government. Moving forward, our new Water Resource Strategy will define our position for how we engage with stakeholder groups on water efficiency.

Page | 26

Table 8 - Yearly water savings (ML/year) achieved through Sydney Water’s Water Conservation Strategy between the end of June 1999 and end of June 2011

Program Residential WaterFix

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

10-1121

765

2,525

3,559

4,285

4,889

5,901

7,270

9,002

9,747

9,918

10,030

10,144

40

180

618

911

776

799

785

118

260

1,172

2,430

3,056

3,551

3558

7

14

224

423

558

29

235

0