The Australian Competition and Consumer Commission welcomes City West Waters announcement of a program to increase customer awareness of, and, how to manage, a rare phenomenon known as blue-green water.

Approximately 100 of City West Waters customers are known to have been affected by blue-green water since January 1995. While the company has been working with the affected customers for some 18 months, City West Water has agreed to provide information on blue-green water to all of its customers.

Blue-green water occurs as a result of increased copper levels in water due apparently to corrosion of customers copper pipes. The increased copper levels are not found in the mains supply. As the name suggests, it has a cloudy to blue-green appearance and can have an unpleasant, bitter taste. It is generally restricted to cold water pipes.

National Health and Medical Research Council guidelines state that concentrations of copper above 2 mg/L are known to cause ill effects in some people. Exposure to concentrations above 3 mg/L for a number of months can cause liver damage in young infants.

Blue-green water is a world-wide phenomenon, not limited to Victoria or Australia. It has become evident since the 1960s with the beginning of a general trend to install copper pipes instead of galvanised metal pipes in houses. Despite years of world-wide research, a certain means of preventing the problem has not been found. Scientific opinion is that a number of factors present in delivered water are strongly suspected to be linked to the incidence of copper corrosion in customers pipes.

City West Water has given court enforceable undertakings to the ACCC, which include:

the provision, without delay, of written material to residents in areas with properties known to be affected by blue-green water. provision of general information (in a brochure form in early 1998) to all residents within City West Waters licence boundaries. implementation of a six-monthly program of random sampling for elevated copper levels within customers homes.

We welcome the involvement of the ACCC, said City West Water managing director Kim Wood.

City West Water had taken a proactive stance since the problem was first reported. It appears that a small number of customers are affected on an ongoing and persistent basis and that City West Water had involved them in a special consultation program, he said.

Nevertheless the ACCC was anxious that other consumers be alerted to look out for signs of blue-green water.

Mr Wood said the blue-green water phenomenon had unpredictable patterns, and could affect one house while a neighbouring property was not affected.

City West Water is seeking the best possible advice on the problem, and the company is taking a very active and caring stance.

In other parts of the world, water companies have taken the view that since the water they deliver is of an acceptable standard, what happens once it contacts a customers pipes is purely the customers problems.

We do not think this is an acceptable attitude. We are actively working to establish cause and cure, and we will continue to make available to affected customers a number of reports, information sheets, guidelines and international research papers. We also conduct on-site testing.

The agreement between City West Water and the ACCC has accelerated a program commenced by the water company some 18 months ago. This program has involved extensive studies by the CSIRO, with expenditure to date of some $500,000 and the provision of electronic copper test kits on short term loan so that customers can monitor copper levels in their home.

Professor Fels said that the ACCCs involvement in this area again emphasised that the Trade Practices Act, 1974 applies equally to government corporations as well as private businesses.

City West Waters actions should substantially improve customers awareness of the blue-green water phenomenon and the steps necessary to reduce the likelihood of ingesting large amounts of copper. This should address the health concerns relating to blue-green water while not causing any undue alarm in relation to the quality of Melbourne's drinking water supplies. It is important to stress that allowing taps to run for 30 seconds will in many cases return water to prescribed levels of purity.

This matter was brought to the ACCCs attention by the Victorian Regulator-General whose staff also provided technical information and assistance.

The ACCC has written to other Victorian water suppliers and the industry association representing Australian water suppliers. The ACCC encourages other water suppliers who are having blue-green water problems to take a similar pro-active stance to City West Water.

City West Customers who think they may have blue-green water should contact City West Water on 9313 8388.

For further information about this media release: Professor Allan Fels, Chairman, ACCC (03) 9290 1812 Ms Lin Enright, Director Public Relations, ACCC (02) 6243 1108 Mr Kim Wood, Managing Director, City West Water (03) 9313 8219