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Profit and praise in Westernport Water’s drought yearWesternport Water finished a drought-hit 2006/07 with a $56,000 net profit, down slightly from the previous year. By Susan Webster - 25th October 2007 - Back to News The worst drought in memory meant burst pipes, strict water restrictions and a heartening public response, said Managing Director David Mawer.
"Customers and staff responded wonderfully," he commented in the corporation’s annual report released this week.
"Customers cut their water consumption, frequently to levels well below weekly targets. Staff and contractors worked long and unsociable hours. We are indebted to you all."
The water corporation was able to retain profitability despite decreased water volumes and increased drought-related costs.
Major capital works to augment supply totalled $4.7m for the year, with the extent of these works reflected in higher suppliers’ costs for 2006/07.
Revenue from tariffs and charges was up slightly in the year, from $10.3m in 2005/06 to $10.8m.
Contributions from developers rose by nearly one-third between the two financial years, while water use and service charges paid by customers only rose 4.1%.
Overall, liabilities were curbed in the latest period – down to $5.1m. This represents a steady decline in liabilities since 2003/04, when they totalled $6.7m.
In comparison to the preceding period, the corporation was able to lift equity slightly in 2006/07 to $110.7m. Equity levels have grown steadily from the $93m recorded five years ago.
The annual report also details service and performance indicators. These show that the 2006/07 year saw a dramatic fall in the number of complaints about water pressure – down 9513% from 2005/06. Water reliability supply complaints also plummeted – down 1431%, and sewerage odour complaints also dropped dramatically – down 205%.
Mr Mawer noted: "We are aware, however, of a 29% growth in water quality complaints. We received 121 in the period and it sharpens our resolve to keep working on this issue."
Low storage levels during the drought forced the Corporation to curtail its usual pipe-flushing activities. Flushing pipes is the usual action to improve water quality.
"Interestingly, our customers are increasingly realising how valuable a resource is water," Mr Mawer said. "The latest figures record that complaints about the affordability of Westernport Water totalled 0.58 per 1000 customers. In 2004/05 that figure was 2.4 per 1000."
The water corporation set targets of water supply interruptions for the year and the latest annual report notes that, while the number of interruptions was exceeded by 20%, the duration of the interruptions was well under predictions.
Westernport Water chair Pamela Cameron said: "The corporation’s board appreciates the water-saving efforts of our customers and the input of the Westernport Water staff.
"We all praise the emergency crews," she added. "The outdoor staff more than halved the time required to remedy planned interruptions.
"Even more impressively, they almost halved the target time for unplanned repair work. This is the hard slog for these workers – the out-in-all-weathers, any-time-of-day-or-night emergencies. The results underline their dedication and their skills and, as a community, we need to acknowledge their extra efforts in the year."
A record number of water breakages and tree root invasions of pipes in 2006/07 were a direct result of the drought, she added.
Imposing Stage 4 restrictions cut water sales by $355,000 during the year, while the drought added extra costs in water monitoring, advertising and public education and increased pumping charges.
Mr Mawer praised Westernport Water’s customers for the way they embraced the water conservation message. "Volumes consumed over summer were up to 50% less than the peak summer months of the previous year," he said.
"We are proud of the way customers and staff helped us all pull through the past year. We are confident that the lessons learned will be invaluable in preparing for our shared future."
Source: http://gippsland.com/ Published by: susanw@ptarmigan.com.au
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