26/06/2008 - 12:29

ACCC finds Water Corp ads misleading

26/06/2008 - 12:29

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The state Liberal party has called on the Carpenter government to apologise to the community over the Water Corporation's Kwinana desalination plant advertising campaign, which was found to be misleading by the corporate watchdog.

ACCC finds Water Corp ads misleading

The state Liberal party has called on the Carpenter government to apologise to the community over the Water Corporation's Kwinana desalination plant advertising campaign, which was found to be misleading by the corporate watchdog.

Shadow water resources minister John Day said a finding by the Australian Competition and Consumer Commission has proved what the Liberal party has been saying since 2006.

The advertising campaign claimed the desalination plant was carbon neutral and its total energy requirements were sourced from the Emu Downs Wind Farm near Cervantes north of Perth.

The ACCC has reportedly found the ads were misleading. However the corporate body told WA Business News it was not able to confirm or deny whether a ruling had been handed down.

Meanwhile, Water Corporation acting chief executive Ross Hughes said that the ACCC has not come to a finding that the utility had been misleading the public in its advertising.

"It did however, accept the Water Corporation's explanation that the desalination plant is powered indirectly by back-to-back contracts with Synergy and the Emu Downs Wind Farm," Mr Hughes said.

"The Corporation has a contract with Synergy to power the desalination plant, which in turn, purchases an equivalent amount of energy from the Emu Downs Wind Farm.

"The amount of energy purchased by Synergy from the Emu Downs Wind Farm is equivalent to the generation of 33 of the total 48 wind turbines.

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