THE BAILLIEU government was collecting huge dividends from Melbourne Water at the same time as the water authority was overcharging Melbourne households.   

The dividend paid by Melbourne Water to the government jumped from $26 million in 2010-11 to $118 million this financial year, while the water authority was charging its customers an extra $306 million for the operation of the Wonthaggi desalination plant.

Melbourne Water has been charging households for the running costs of the desalination plant since December last year, even though it became aware in November that the plant would not be operational until February 2013.   


After acknowledging its billing error, Melbourne Water initially said consumers would be refunded over five years in the form of offsets to future bills. However, it has since raised the possibility of some alternative repayment methods.

Premier Ted Baillieu described the charges as a ''hiccup'' this week - a comment that infuriated consumers who are owed an estimated $177 each.

On Wednesday, Melbourne Water managing director Shaun Cox revealed that, to date, consumers have been overcharged $220 million. He estimated they would be overcharged at least a further $75 million before the plant's scheduled opening.

In its budget papers, the government noted that an increase in dividend revenue in 2011-12 was largely driven by the ''profitability within the water sector''.

However a spokeswoman for Mr Baillieu yesterday would not be drawn further and refused to say whether its increased dividend from Melbourne Water had been provided by the overcharging of consumers.

''There are a number of reasons why profitability increased last year,'' she said. ''Some expenses are down - there were increases in sewerage flows, and an increase in water usage.''

She also said a deferral of dividends from the previous financial year had boosted the total from the sector.

Between 2005/06 and 2010/11 the average dividend paid by Melbourne Water was $76.6 million, well below the $118 million total this year.

Last night Melbourne Water denied that its increased dividend to the state government was due to the excess charge to consumers.

''The government has not received any increase in dividends as a result of the collection of money for the desalination plant,'' a spokeswoman said.

Leading Melbourne QC David Galbally yesterday called on consumers to write to Melbourne Water demanding that their money be returned and suggested a class action could be launched against the authority.   

''I think the conduct of Melbourne Water is nothing short of outrageous,'' he told radio station 3AW. ''[Which is] not to ignore the fact that they have taken this money unlawfully. This is not their money.

''There are going to be elderly and other people who can't afford to have this sort of money taken out of their accounts and not repaid to them,'' he said. ''Can you imagine if somebody didn't pay their water bill? I think that is conduct that we should not put up with.''


Read more: http://www.theage.com.au/victoria/desal-hiccup-hands-over-118m-lib-dividend-20120615-20fos.html#ixzz1xuB2vkP1

You do realize it was the idiot previous Government who saddled us with $17,500,000,000 of debt to built the fricken plant that we don't even need.

The same idiot Government that also gave you a Myki system that didn't work.

The same Government that also couldn't deliver a healthcare IT system within 5 years of the deadline or within 3 times the original budget.

The last Victoria Government of Brumby and the Grease Monkey was the gold standard of project bugger ups.