Tasmanian households face an extra $80 on their water bills next financial year after the state’s economic regulator knocked back TasWater’s bid for steeper price rises.
The Tasmanian Economic Regulator on Thursday approved annual price increases of 5.7% for the four years from July 1 – roughly half the 11.5% TasWater had sought.
For an average household, the bill will climb from $1,407 to $1,487 in 2026-27.
Small businesses will be hit harder, with average bills rising about $172 to $4,294.
Renters are partly shielded. Only the variable water charge can be passed on under the Residential Tenancy Act, meaning the average tenant will see an increase of about $25.
TasWater had asked to spend nearly $2.8 billion over four years – a 61% jump on the previous period. The regulator capped approved revenue at $1.95 billion.
Economic Regulator Joe Dimasi said the decision tried to strike a balance.
“The challenges facing Tasmania’s water and sewerage infrastructure are real and continued investment is essential,” Dimasi said.
“Most Tasmanians appear to understand the need for investment, but TasWater’s proposal would have placed a very high burden on households and local businesses at a time when cost-of-living pressures are already significant.”
“My decisions aim to better balance the need for investment with protecting customers’ interests.”
A key sticking point was older infrastructure rolled into TasWater’s books when the utility was formed.
The regulator found customers were being charged for assets no longer used to deliver services.
The regulator also ruled it was not realistic for TasWater to deliver its full building program in four years. Some projects will now stretch into the next regulatory period.
TasWater accepted the outcome.
“TasWater acknowledges and welcomes the Tasmanian Economic Regulator’s final pricing determination,” the utility said in a statement.
“Whilst the outcome results in price increases below those proposed by TasWater, we respect the regulator’s decision and will now focus on delivering the service standards and investments approved.”
The investigation drew 102 public submissions, described by the regulator as an unprecedented level of public engagement.
A review of TasWater’s regulatory framework is expected to begin in coming months.
Labor MP and shadow treasurer Dean Winter, who previously criticised the proposed price hike as “insane”, said the dividends TasWater returns to councils should also be reviewed.
“Unfortunately, the regulator has no power over the dividends … and Labor remains deeply concerned that under TasWater’s corporate plan councils are still in line for a 50% dividend increase,” he said.
“TasWater can’t claim it needs every dollar for upgrades while funnelling more money back to its council owners.”
