Optimising operational costs Erin Cini, Manager Liveable Communities WSAA Utility Members
QLD Unitywater Queensland Urban Utilities Banana Regional Council NT City of Gold Coast Isaac Regional Council Power and Water Corporation Gladstone Area Board Mackay Regional Council Logan City Council Mount Isa Water Board Redland City Council Southern Downs Regional Council Seqwater Wide Bay Water SunWater Whitsunday Regional Council WA City of Townsville Cairns Water Water Corporation Toowoomba Regional Council Western Downs Regional Council Aqwest Busselton Water
NSW ORANA (11 Councils) Central Coast Council Rous County Council Goldenfields Water Byron Shire Council Hunter Water Lithgow City Council Shoalhaven Water Eurobodalla Shire Council Sydney Water Lismore City Council WaterNSW MidCoast Water Queanbeyan Regional Port Maquarie-Hastings Council Council Centroc (14 Councils) Tweed Shire Council
SA SA Water ACT Iconwater
VIC Yarra Valley Water Barwon Water Westernport Water TAS Central Highlands Water East Gippsland Water Taswater City West Water Goulburn Murray Water NZ Coliban Water GWM Water Watercare Services Gippsland Water North East Water Wellington Water Goulburn Valley Water Wannon Water Melbourne Water Lower Murray Water South East Water South Gippsland Water Western Water Agenda
Australian context
Understanding operating costs
Energy management
Leakage management Australian Context Australia’s climate is changing
Rise of 1.4ºC in Australian land surface temperatures
Drought
Australian COVID-19 impacts Australian COVID-19 impacts
Boarder closure
Social restrictions
Recession
Increase in unemployment
Stimulus investment Water utility COVID-19 impacts
Due to government stimulus have not seen huge revenue impacts… yet
Utilities freezing prices
Increase in hardship applications Australian context Australian governance framework Optimising Operating Costs Operating costs
Bulk water Desalination Dams and rivers 14% 7%
Retail Water treatment 4% 11% Wastewater treatment/disposal 16%
Recycling
Based on WSAA’s study into the urban water value chain. Individual utility costs will differ depending on local circumstances. Source: Water Services Association of Australia (WSAA) 2017 Optimising operating costs
Understanding costs
Energy management
Leakage management Understanding Operating Costs Opex benchmarking
A new model for operating cost benchmarking that: • is led by the industry • is delivered by the industry • greater analytical capability • embedded and sustained in the water industry • enable participants to share results at a high level to enable management to identify efficiency opportunities. Opex Benchmarking Study Opex Benchmarking Study Total costs benchmarked The big picture – opex per property
Total opex per property = total opex/connected water properties Wastewater network Wastewater network cost per break
Wastewater Network (2.1.0) cost per total breaks
Sydney Water CorporationEmu
$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000
Source: WSAA data and NPR 2017-18 Benchmarking
• OPEX • Health and Safety • Energy • Customer Perceptions Survey • Asset Management Customer Value • Financial metrics • Research investment Energy Management Electricity spot price
Source: Australian Energy Regulator Case study: SA Water
Over $80 million in energy costs in 2018-19 - Variability: +/- $20 million
Costs from: - Wholesale electricity - Network charges
Moving to self-retailer - Generation behind the meter - Zero cost energy 2020 Changing approach to energy management Program consisted of seven initiatives Biogas Case study: Barwon Water
Renewable Organics Networks
Partner with six local councils and major export manufacturers
Transform organic municipal and trade waste into renewable energy, hot water and agricultural soil enhancers
Reduce energy costs, increase revenue https://www.barwonwater.vic.gov.au/about- us/major-projects/renewable-organics- networks Leakage Management Leakage in Australia
120
100 250
80 200
60 150
40 100
20 50 Avg. losses (L/connection/d) Real Avg.
0 0 09 10 11 12 13 14 15 16 17 2015 2016 2017 2017-18 2008 – 2009 – 2010 – 2011 – 2012 – 2013 – 2014 – 2015 – 2016 – AUS UK US Water main breaks (no/100km) Real losses (L/connection/day)
6.5%
Denmark, 2015 Approaches being used
Sunshine Coast – research to understand economic level of leakage: • Active leakage control - $1 spent, $3 saved in bulk water costs • Pressure management – Slightly cheapest option – can impact fire flow requirements • Mains replacement – not economical if done only for leakage
Melbourne utilities - exploring options to upgrade the fleet of digital water meters
SA Water CBD - smart water network and 24/7 monitoring with world leading analytics platform
Water Corporation – leak detection dogs How to find us
Twitter @erincini @wsaa_water
LinkedIn Water Services Association of Australia
Web www.wsaa.asn.au