The DEC for water and sewerage infrastructure in SA is projected to increase from $947 million in 2011 to $1.4 billion in 2031, an increase of 44 per cent. The Audit identified that 125 GL of water was supplied to Adelaide in 2011 and 79 GL to other regions. In 2011, 90 GL of sewerage was collected in Adelaide and 4 GL in other areas.
The highest projected growth in water and sewerage DEC in SA is in Adelaide, where DEC is projected to grow by 53 per cent, from $681 million in 2011 to $1 billion in 2031. In the regional areas, DEC is projected to grow by 22 per cent over the same period, from $266 million to $324 million.
Water and sewerage services have historically been under-priced, particularly in regional areas. This has potentially led to an understatement of DEC as measured using the National Water Commission data (and as incorporated into the national accounts and GDP numbers).
In regional areas, under-pricing of water and sewerage services means that the income derived from water and sewerage infrastructure falls below the level needed to fund renewal of assets.