A "commercial agreement" between Contact Energy and the Tarras Community Association is on the cards for a multimillion-dollar scheme to pump water from the Clutha River.
However, the exact terms, or nature, of the commercial agreement remain a mystery to members of the association, who say the future relationship has nothing to do with speculation Contact may be dusting off plans for hydro-electric dams at nearby Luggate and Queensberry.
Association spokesman John Morrison said Contact Energy had publicly acknowledged it would like to be involved with the proposed $40 million Tarras water scheme.
"Contact have expressed in their terms that we have a commercial agreement. We're just not sure exactly what that involves," he said.
Neil Gillespie, a project manager with Contact's Clyde-based generation development team, said discussions were at an early stage and an agreement between the two parties would be "commercial in nature".
However, it was too early to make any connection between the Tarras water scheme and possible hydro-electric schemes on the Clutha River at Luggate and Queensberry.
"Nothing's impossible. The Clutha is a big river and if water is to be pumped out of it for the scheme, it makes sense for us to be interested in how that may affect electricity generation," Mr Gillespie said.
The Tarras water scheme aims to provide a consistent water supply to an area of 10,000ha within three to four years.
Pre-feasibility costs for the water scheme stand at about $4000/ha, Mr Morrison said.
The agreement could "possibly" help cover the scheme's set-up, or electricity costs associated with pumping water from the Clutha to Tarras.
There had been no mention from Contact during discussions about the possibility of hydro-electric dams being built, he said.
"We asked if there was any likely scheme and they told us there were no plans. That was months ago and things may have moved on since then," Mr Morrison said.
The TCA was focused on the water provision scheme and Mr Morrison said he did not wish to express an opinion, on behalf of other members, about dams on the upper Clutha River.
Mr Gillespie said Contact was "looking" at hydro-electric generation again and the key thing with the water scheme was how its future development evolved.
