Outage, Quarter 4 presents the best balance of revenue-loss mitigation with respect to market pricing, as opposed to

Quarter 1 which represents the highest revenue ($60.58 M) and Quarter 4 which represents the highest demand (2312.20
Mega-Litres) and Water Balancing Market Prices ($74.38).

$60,000,000.00

$50,000,000.00

$40,000,000.00

$30,000,000.00

$20,000,000.00

$10,000,000.00

$0.00
Q3 Q4 Q1 Q2

Kootha Surjek Jutik

Average Water balancing market price vs

market demand
$100.00 2,500.00
$90.00
$80.00 2,400.00
$70.00 2,300.00
$60.00
$50.00 2,200.00
$40.00
$30.00 2,100.00
$20.00 2,000.00
$10.00
$0.00 1,900.00
7 8 9 10 11 12 1 2 3 4 5 6
Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May Jun-
14 14 14 14 14 14 15 15 15 15 -15 15 1
Of the three Desalination Plants, all three remain profitable at current market prices by a favourable margin; Clearly
Kootha is the most cost-effective ($30.95/ML) followed by Jutik ($43.35/ML) and lastly Surjek ($66.42/ML) which is
consistent across the July-2013 to June-2014 period

Cost to produce vs WBMP Market Price

$90.00
$80.00
$70.00
$60.00
$50.00
All three desalination plants - Kootha, Surjek, $40.00
and Jutik - are profitable at current market $30.00
prices. $20.00
Kootha leads in cost-effectiveness with a $10.00
production cost of $30.95/ML. $0.00
Kootha Surjek Jutik
Jutik follows at $43.35/ML, with Surjek being
the least cost-effective at $66.42/ML. Overall Desalination Cost to Produce ($/ML)
These trends remained consistent from July Overall Average WBMP Market Price
2013 - June 2014.

2
Contrasting the Cost to Produce against the Volume of Water Produced highlights clear economies of scale, with costs
rapidly dwindling across all plants as volume surges. This is particularly noticeable across the Kootha and Surjek
Plants with costs dropping as much as 50%.

Kootha Surjek
$40,000,000.00 $100,000,000.00
$35,000,000.00 $90,000,000.00
$80,000,000.00
$30,000,000.00
$70,000,000.00
$25,000,000.00 $60,000,000.00
$20,000,000.00 $50,000,000.00
$15,000,000.00 $40,000,000.00
$30,000,000.00
$10,000,000.00
$20,000,000.00
$5,000,000.00 $10,000,000.00
$0.00 $0.00
$80.00 $100.00 $120.00 $140.00 $160.00 $180.00 $200.00 $200.00 $250.00 $300.00 $350.00 $400.00

Jutik
$50,000,000.00
$45,000,000.00
$40,000,000.00
$35,000,000.00
$30,000,000.00
$25,000,000.00
$20,000,000.00
$15,000,000.00
$10,000,000.00
$5,000,000.00
$0.00
$140.00 $160.00 $180.00 $200.00 $220.00 $240.00 $260.00
3
 Drilling down further from a product-perspective reveals two different patterns of elasticity where Soft
Water tends to be relatively less elastic with an average EoD of 1.01, whilst Hard Water is more
representative of an elastic relationship with an average EoD of 1.02.

Soft Water
$2,350.00
$2,300.00
$2,250.00
$2,200.00
Soft + Hard Water $2,150.00
$2,100.00
$2,500.00 $2,050.00
$2,000.00
$2,400.00
$1,950.00
$2,300.00 $1,900.00
$1,850.00
$2,200.00 $48.00 $50.00 $52.00 $54.00 $56.00 $58.00 $60.00 $62.00 $64.00

$2,100.00

$2,000.00

$1,900.00
$0.00 $20.00 $40.00 $60.00 $80.00 $100.00 Hard Water
$2,600.00

$2,500.00

$2,400.00

$2,300.00

$2,200.00

$2,100.00

$2,000.00
$90.00 $95.00 $100.00 $105.00 $110.00 $115.00
4