In his discussion with the Legislative Council yesterday, the Treasurer claimed that some TasWater customers will have a 20% increase in prices each year until they arrive at target tariffs on 1 July 2020.

“It may have been a clever choice of words, but there are several things Mr Gutwein neglected to say, particularly regarding the legislative conditions imposed on TasWater by the parliament, as well as the determinations of the independent regulator,” said TasWater Chairman Miles Hampton.

Firstly, the term “target tariff” means everybody paying the same price for the same service regardless of where they live. When the water and sewerage reforms first happened in 2009, some customers were paying as much as $8000 for the same service for which others were paying only $400. The Tasmanian Economic Regulator said that was not fair, and TasWater agrees.

The current legislation directs TasWater to ease all customers to a “same price for same service” model by 1 July 2020. This reflects both the cost of providing the service and the efficiencies only made possible from having a statewide water and sewerage utility for the first time. It is not only fairer, but it is TasWater’s legal obligation.

Secondly, the Treasurer failed to mention that there are zero customers paying above target prices. Rather, he emphasised a “small number” who are paying 40% less than others.

“This “small number” is actually just eight – eight out of more than 200,000 customers. These are customers who would, under the Treasurer’s model, be paying less than everyone else until 2042 for exactly the same service, said Mr Hampton.

“Of course, TasWater understands that even a moderate price increase can be difficult for some customers; so it has in place programs to assist anyone experiencing genuine difficulties paying their bills.”

Today, about 94 per cent of customers are paying the same price for the same service no matter where they live.

TasWater has managed to do it all while keeping annual water and sewerage charges the cheapest in the country – last year, almost $300 below the national average.

TasWater believes that ten years on, all its customers should pay the same price for the same service and the legislation requires that transition is complete by 1 July 2020 and this is the date TasWater is working toward.

TasWater is committed to providing Tasmania with an economically and environmentally sustainable water and sewerage system that will meet the needs of our community well into the future.

While this demands careful financial management, under the guidance of the Economic Regulator TasWater already is well equipped to both take into account the needs of our customers and to make sound judgements on pricing and service provision while maintaining affordability.
TasWater