Sydney is facing a water crisis as its population is projected to increase significantly by 2031. Current water demand already exceeds supply and if consumption is not reduced, Sydney is estimated to run out of drinking water by 2038. Several initiatives are proposed to reduce demand by 40% by 2038, including a 50% increase in water prices, targets for households to collect rainwater, and a water trading scheme. Calculations show these initiatives could decrease drinking water demand by 32.5% and avoid the predicted crisis.

8. PREDICTED CALCUALTIONS OF WHEN SYDNEY WILL RUN OUT OF WATER Source: table compiled from key figures from Sydney water, waterforlife and SCA Comparison between total water demand and total supply

9. PROBLEMS AND SOLUTIONS REDUCE the use of water from the residential demand side , as residents use 70% of fresh water supply Source: 2006 SoE

11. SOLUTIONS

12. INTIATIVE ONE – Proposed Water Price increase by 50% GOAL: To reduce demand and to increase revenue for other initiative schemes TARGET: 5% - 25% reduction in water demand every year

13. INCLINING BLOCK PAYMENT SYSTEM Price increase varies according to different levels of use Low – 40%, Medium – 45%, High – 50% *NB: Threshold levels will be determined by Sydney Water’s usage calculation model

14. 50% INCREASE FROM CURRENT WATER PRICE LEVELS OF $1.61 PER KILOLITRE TO $2.415 2008 Sydney Water budget performance, the demand amount at 630 087 megalitres at the current price of $1610 per ML , the total revenue was: $389 000 000 At our proposed new price increase at $2.415 per KL at the highest pricing level/threshold. The profit after the increase before tax is: = $701,251,162, a 55% increase in profit between the old price and the proposed price. Revenue generated will go towards funding our other water saving initiatives.

15. We propose that rental properties in Sydney should pay for their water use 452 395 (29.7%) of total occupied private dwellings (ABS 2008) Profit can go up by 30 – 35% OR $936,753,486 in one year

16. POTENTIAL IMPACTS OF PRICE INCREASE Our research has shown that other cities, who have implemented price increases between 40 – 70%, have reduced their demand anywhere between 5 – 25%. This price increase proposal will require changes to the pricing tribunal as part of the legislative framework. This will be reviewed by IPART, under the Independent Pricing and Regulatory Tribunal Act 1992

22. INTIATIVE THREE – WATER TRADING SCHEME

23. EDUCATION - Household daily targets - How they can cut down - Different mediums - Impacts of their water use - Information on rainwater tanks

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