TasWater proposes nearly 40 per cent price hike on water bills over the next four years

Average Tasmanian households would pay more than $1000 extra on water bills over the next four years, under a plan slammed by the state’s peak community services body as a blow to cost of living.

Average Tasmanian households will pay more than a $1000 extra on water bills over the next four years, under a plan slammed by the state’s peak community services body as a blow to cost of living. Picture: supplied

Average Tasmanian households would pay more than a $1000 extra on water bills over the next four years, under a plan slammed by the state’s peak community services body as a blow to cost of living.

The Tasmanian Economic and Pricing Regulator released TasWater’s proposed price and service plan on Thursday.

The proposal includes a price increase of 8.8 per cent per annum for water and sewage between July 1, 2026, and June 30, 2030 – meaning average household bills will rise from about $1410 next financial year to about $1930 by 2030, plus fixed costs.

Fixed water and sewage charges will be reduced in the first year by an average of $176 before rising by 8.8 per cent in subsequent years.

TasWater general manager of customer and community Matt Balfe acknowledged while the increases – the equivalent of about $5 a week – would not be popular, they were “the right thing to do”.

“Our core business is balancing all of the scenarios of price and service,” Mr Balfe said.

“We believe that this is the most responsible plan that we can put forward at this point in time to ensure we’re protecting the environment in a way that’s fair to customers.”

The plan is subject to approval from the TER, with the final decision due by April 30 next year.

TasWater Selfs Point site. Picture: supplied

It also includes a reduction of fixed costs of around $176 for households per year, and the bolstering of TasWater’s financial support program, TasWater Assist, by $2.4 million.

“We know our customers value more control, and now if you use less water, you will pay less for your water,” Mr Balfe said.

“We will (also) do our best to attract additional funding, particularly at the federal level.”

The cumulative $1.7 billion generated from the increases would go towards water and sewerage infrastructure upgrades.

TasCoss CEO Adrienne Picone said while continuing investment was “necessary”, the proposal was still a “major blow to Tasmanian households” – especially during a “cost of living crisis”.

“Tasmanians on the lowest incomes are already making enormous sacrifices to afford their household bills, with prices for the essentials still continuing to rise,” Ms Picone said.

“The (TER) has a critical role in investigating and determining the maximum prices TasWater can charge, and we will be seeking to ensure that approves prices and planned activities are fair and efficient.”

TasWater Selfs Point site. Picture: supplied

If it comes into effect, the plan will see water bills for renters more than double – prompting the Tenants Union of Tasmania to call for the expansion of the water and sewerage concession.

“If renters are going to be slugged with a doubling of their water bill, measures need to be put in place to ensure that disadvantaged renters are protected,” union principal solicitor Ben Bartl said.

“We call on TasWater to broaden the concessions currently available to owner occupiers by ensuring that eligible renters are provided with a discount. “

The announcement was made from the TasWater Selfs Point site in New Town, where construction continues on the $314 million sewerage transformation project.

“We’re a quarter of the way through the construction of the new interconnecting pipeline between here and Macquarie Point, and we’re deep in construction of the Macquarie Point pumping station,” TasWater major projects head Tim Cubit said.

“That pumping station is 24 meters wide and 12 meters deep. We’ve excavated that, and we’re starting what we call concrete structure work to bring it back out of the ground.”

The project is set to be completed by the end of next year.

Originally published as TasWater proposes nearly 40 per cent price hike on water bills over the next four years