Sydney Water Operational Audit 2011/2 - IPART - NSW Government

2.1.3 Section 2.3 – Changes to management of Water Quality
Section 2.3 of the Operating Licence refers to the obligations Sydney Water have regarding
changes to the management of water quality.
(a) Sydney Water must notify NSW Health of any proposed changes to its processes for:
(i) managing; or
(ii) reporting to NSW Health in relation to;
Drinking Water quality under clause 2.1 or Recycled Water quality under clause 2.2 where
such changes may have a material impact on public health.
(b) Sydney Water must obtain NSW Health’s approval for any changes notified under clause
2.3(a) before implementing them.
2.2 Factors Affecting Compliance
It is the opinion of the auditor that there were no known external issues that may have
substantially impacted on Sydney Water’s performance with respect to this Licence Part. This
was confirmed at interview with Sydney Water.
Substantial rainfall events did impact compliance to some water quality performance standards,
but these did not have a material impact on public health or compliance to the Operating
Licence.
2.3 Water Quality – Compliance
Sydney Water has been assessed as having demonstrated ‘Full Compliance’ with the
requirements of this Part of the Licence. Supporting commentary for specific Clauses is
provided in Appendix B (Clause 2.1), Appendix C (Clause 2.2) and Appendix D (Clause 2.3).
Sydney Water addressed matters associated with the previous audit, which previously awarded
only a ‘High’ Compliance for one Clause, as concern was raised associated with the integrity of
drinking water storages.
Sydney Water addressed matters associated with endorsement of recycled water quality
management plans, which have all been submitted to NSW Health. NSW Health indicated that
endorsement of these was imminent.
2.4 Discussion
The audit considered a risk-based approach to assessing drinking water and recycled water
compliance, with a focus on those matters identified in the previous audit report, noted as both
Key Recommendations and Secondary Recommendations.
The audit included a thorough audit questionnaire and desk top review of information provided
by Sydney Water; a detailed but targeted site interview plan; and a detailed but focussed site
inspection program including a drinking water treatment plant (operated by a Build Own Operate
(BOO) – being Woronora), a recycled water treatment plant (Wollongong Stage 1 and Stage 2),
and a reservoir site (Heathcote).
2.4.1 Drinking Water
The quality of drinking water supplied to customers is of an excellent standard and complies
with the health related requirements of the Australian Drinking Water Guidelines (ADWG 2004
and 2011), the aesthetic related requirements specified by NSW Health and the Minister, and
the operating targets set out in the Fluoridation code.
GHD | Report for Independent Pricing and Regulatory Tribunal - Operational Audit of Sydney Water Corporation, 23/14602 | 7