TasWater to Adjust Sewerage Charges Following Backlash Over Price Hikes

TasWater has announced it is assessing changes to its fixed sewerage charges after recent policy adjustments led to steep price increases for several non-residential customers, including local businesses, manufacturers, and sporting clubs.

The pricing structure, introduced on July 1, based fixed sewerage fees on the size of a property's water pipe connection rather than actual sewage output. While the methodology reduced costs for many consumers, it resulted in severe rate hikes for entities with large pipe connections that generate relatively low sewage volumes. In one instance, a business saw its monthly bill jump 500 per cent, rising from $630 to $3,800.

Utility Responds to Community Concerns

TasWater general manager Callan Paske acknowledged the issue, stating that the utility listened to customer feedback and is working to fix the situation. He noted that while the new model benefited many, the transition created unintended financial consequences for certain customers whose water connections do not align with their actual demand on the sewerage system.

The utility confirmed it is developing a targeted solution for heavily impacted non-residential customers with low discharge levels. Additionally, TasWater plans to modify rates specifically for sporting clubs that primarily use water supply for field irrigation. Both corrective measures will be backdated to July 1.

Regulatory Context and Government Reaction

TasWater previously implemented the updated structure following recommendations from an independent inquiry to alter its billing framework. Tasmanian Premier Jeremy Rockliff welcomed the utility's decision to pause and rethink the charges, citing constructive discussions between the state government, TasWater, the local government sector, and the Tasmanian Economic Regulator.

The review of fixed sewerage fees does not alter general water usage prices, including residential rates. The Tasmanian Economic Regulator recently rejected TasWater's request for an 8.8 per cent water price increase over four years, setting the allowable increase at an average of 5.7 per cent annually over the same four-year period instead.