1. In Confidence WESTERNPORT WATER COMMUNITY CONSULTATION WATER PLAN 2008 – 2013

2. In Confidence Agenda Workshop objectives Group “rules” Water plan overview Consultation process This workshop provides a landscape view to gain your feedback.

3. In Confidence Group “rules” You are here as representatives of your community No right or wrong answers Everyone must have a chance to contribute to the discussion All records of the group and reports will be de-identified, i.e. individual names will not appear on any documentation Group duration = 2 hours

4. In Confidence Workshop objectives Gather customer feedback Help formalise plans for 2008-2013 Explore in greater detail issues raised in telephone survey

5. In Confidence Water Plan overview The final Water Plan will be submitted to the Essential Service Commission (ESC) in September  Covers period 2008-2013  Sets service standards  Sets prices The ESC also expects Water Plans to detail the consultations undertaken  Customers and the community  Regulators

6. In Confidence Water Plan Draft Water Plan to be submitted 1 May 2007 –DSE –EPA –DHS –Open for further community feedback Purpose today is gather Community input towards development of the Draft Plan.

7. In Confidence Community Consultation Process Development of Draft Water Plan Telephone survey completed in March  random sample 200 customers On-line feedback survey  Currently available  www.westernportwater.com.au www.westernportwater.com.au  Open until 10 April Community Forums  28 and 31 March

8. In Confidence The Water Plan will cover Pricing  Step tariffs  Lower the service charge and raise the volumetric charge Water supply security  Options to improve supply  Costing of these options Water quality  Options to improve quality  Costing of these options

9. In Confidence Water pricing Water pricing is made up of two components:  Service charge – relating to infrastructure  Volumetric charge – actual water used WPW is considering options for pricing that…  Are fair to all customers –Permanent –Non permanent  Consider affordability issues  Support customer awareness of water usage  Recovers enough to run the business

10. In Confidence Water pricing - issues Customer base  60% non permanent residents  40% permanent residents Pipes and pumps sized for peak  Underutilised for majority or year Need to recover full cost plus future cost

11. In Confidence Water pricing - options Option 0 – Status quo Service charge with volumetric charge Option 1 - Step tariff structure with affordable first tariff block This system would result in high water users paying a higher premium for water This structure would only apply to domestic customers, not commercial who are often higher water users Option 2 - Lower the service charge raise volumetric charges Applies to domestic and commercial/ rural customers Overseas experience is that low-income households are much more likely to have below average water consumption

12. In Confidence Water pricing options – customer feedback What do you think? How do you rate Option 0? How do you rate Option 1? How do you rate Option 2? 1 = Poor - 10 = Excellent What are the advantages of Option 1? What are the advantages of Option 2? Are there any other options WPW should consider? Which option do you prefer?

13. In Confidence Water supply security Managing supply demand balance Demand Steady at 2000 Ml Water Supply Certainty Now Very uncertain

14. In Confidence Water supply security - options WPW is considering 4 options to secure the water supply 1. Continue to use our current reservoir (Candowie Reservoir) with groundwater and the Bass River 2. Extend Candowie Reservoir – in the short term 3. Extend Candowie Reservoir – in the long term 4. Melbourne Water connection Note: All of these options will come with a cost to the consumer

15. In Confidence Water supply security - options Option 1 – continue to use Candowie reservoir with groundwater and the Bass River Involves obtaining…  1.6 Gl from aquifer  1 Gl from Bass River Environmental impact Reliability of bore uncertain Relies on rainfall

16. In Confidence Water supply security - options Option 2 – Option 1 plus extend Candowie Reservoir  In the short term this would yield an additional 500Ml Option 3 – extend Candowie Reservoir  Double the Reservoir capacity  Raise the reservoir wall  Cost: $15 Million  Additional land would need to be purchased  10% increase in accounts

17. In Confidence Water supply security Option 4 – Connect to Melbourne  2200 million litres per year  Pipeline and pumping  Relies on water availability  Slow recovery of Melb system  Large scale desalinisation possible

18. In Confidence Water security supply – customer feedback Which option do you prefer? Why? What do you think? How do you rate Option 1? How do you rate Option 2? How do you rate Option 3? How do you rate Option 4? 1 = Poor - 10 = Excellent

19. In Confidence Water Quality - background In the telephone survey… 66% said taste was the main aspect WPW should focus on but 67% did not want to pay for improvement WPW is considering 3 options to improve water quality 1. Improve the treatment process. 2. Increase the levels of flushing and pipe cleaning 3. Provide and maintain filters at customers houses

20. In Confidence Water Quality - options Option 1 – Improved treatment Capital works Improves water quality entering system Option 2 – Flushing and pipe cleaning Removes stale water from system Increases customer interruptions Option 3 – On-site filter Optional for customers who are willing to pay WPW maintains filter Removes taste and odour

21. In Confidence Water Quality - customer feedback Are they viable options? Do you have a preference? Would you support any of these initiatives if they resulted in a price increase? What do you think? How do you rate Option 1? How do you rate Option 2? How do you rate Option 3? 1 = Poor - 10 = Excellent

22. In Confidence