2026 Water and Sewerage Price Investigation Draft Report

Media release – Tasmanian Economic Regulator, 2 February 2026

2026 Water and Sewerage Price Investigation Draft Report and Proposed Price Determination

The Tasmanian Economic Regulator, Mr Joe Dimasi, has today released his Draft Report for the 2026 Water and Sewerage Price Determination Investigation, setting out proposed prices, service standards and revenue allowances for TasWater from 1 July 2026 to 30 June 2030.

TasWater’s proposed Price and Service Plan was based on a spend of around $2.8 billion over four years, compared to $1.7 billion over the previous regulatory period. This is an increase 61.4 per cent or almost $1.1 billion. This level of expenditure would result in an annual price increase of 11.5 per cent for TasWater’s customers. It includes the largest capital investment program in TasWater’s history of approximately $1.7 billion and an almost 30 per cent increase in operational expenditure.

TasWater proposes to defer some of that proposed price increase to the next regulatory period and was looking to increase prices by 8.8 per cent per annum over the next four years.

The Economic Regulator’s draft decision is to approve an average annual price increase of 4.3 per cent over the four-year period.

The Economic Regulator recognises the need for TasWater to invest in its infrastructure. However, it considers that it is not prudent to attempt to deliver all of the proposed projects in the next four years. The Economic Regulator’s draft decision is to extend the delivery of TasWater’s capital expenditure program over two regulatory periods.

The Economic Regulator has also made the draft decision to reduce TasWater’s proposed operational expenditure, through adjustments to TasWater’s wage increases and efficiency savings. These draft decisions have been informed by the assessment from two teams of independent experts who worked closely with the Economic Regulator and TasWater over six months to assess whether its planned investments are reasonable and necessary, and represent a cost-effective use of customer’s money.

“The long-term challenges that TasWater is facing in modernising Tasmania’s ageing water and sewerage infrastructure are real and ongoing,” Mr Dimasi explains. “My draft decisions aim to strike the right balance between affordability for customers and the need for TasWater to continue investing in its infrastructure.”

The Draft Report also considers TasWater’s proposed tariff reforms, which aim to make charges more aligned with customer usage. While the Economic Regulator supports the intent of these reforms, it is intended that a transitional approach will apply during the fifth regulatory period which aims to ensure fairness and minimise customer impacts.

The Economic Regulator’s draft decisions result in a bill increase of $54 in 2026‐27 for an average residential household, compared to a bill increase of $91 under TasWater’s proposals as expressed in its proposed PSP5. This increase would have been $147 under TasWater’s total proposed expenditure program that equated to an annual increase of 11.5 per cent.

An average small business customer would experience a bill increase of $112 in 2026-27 based on the Economic Regulator’s draft decisions, compared to a bill increase of $251 based on TasWater’s full expenditure proposals.

Table 3 shows estimated water and sewerage bill outcomes for average residential and small business customers in 2026-27.

Stakeholder engagement has been at unprecedented levels through the investigation, with a record number of submissions informing the Economic Regulator’s draft decisions.

“I thank all of the contributors for their valuable input,” Mr Dimasi continued. “I have carefully considered all of the feedback, and I look forward to hearing more from TasWater’s customers and stakeholders over the coming weeks before I make my final decisions.”

The Draft Report is now open for public consultation. Submissions are invited until 13 March 2026, and the final report will be published in May 2026.

For more information and to view the Draft Report, visit 2026 Water and Sewerage Price Determination Investigation.

---

Media release – TasWater, 2 February 2026

Safeguarding Tasmania’s Water Future

TasWater acknowledges the release of the Tasmanian Economic Regulator’s Draft Report and Proposed Price Determination for their fifth Price and Service Plan.

TasWater Chief Financial Officer, Kane Ingham, said the draft determination is a vital part of the regulatory process following our submission in June 2025.

We proposed an annual 8.8 per cent price increase for the period of 2026 – 2030, which we believe strikes a fair balance for the need for investment whilst minimising impacts to our customers,” Mr Ingham said.

“Following the release of the regulator’s draft determination today proposing a 4.3 per cent annual increase, we will now take some time to analyse the draft outcomes and assess what it means for Tasmania’s water and sewerage infrastructure and for the services we provide – should the draft determination be formalised.

“We know there are risks in delaying projects, not just because of the heightened risk of failures in ageing infrastructure and their impacts, but also because the longer these projects are put off, the more expensive they are likely to be.

“TasWater was established in 2013 to provide the scale and capability required to address sector challenges that individual councils could not manage alone.

“We spent our first 10 years upgrading water quality to ensure boiled water alerts are no longer an everyday reality for many towns.

“We want Tasmanians to get clean drinking water when they turn on the tap. We want families to be able to enjoy our beaches and waterways without worrying about closures due to failing sewer plants. And we want to respond to the housing crisis by supporting Tasmania’s housing growth by ensuring our infrastructure keeps pace with demand.

“We are always seeking other funding streams as part of our business-as-usual approach to capital expenditure. Over the last four years, we secured more than $300 million in federal and state government grant funding. We have also worked very hard to identify savings within our own organisation, including more than $34 million in operational savings and $100 million in capital savings.”

Water Service Association of Australia (WSAA)’s Adam Lovell echoed TasWater’s critical need to update its ageing infrastructure and the risks of deferring investment.

“As the peak body representing the water sector in Australia, we provided a submission to the Tasmanian Economic Regulator’s price and services review of TasWater,” Mr Lovell said.

“As outlined in our submission, Tasmania is not unique in the challenges it faces. Right across Australia, water utilities are dealing with the same pressures – from ageing infrastructure to rising water and sewerage infrastructure costs, delaying investment is not optional. It is the foundation for everything else – housing, industry, health, the environment and so much more.

“TasWater has been upfront about the fact that prices will need to rise over the coming years to support the infrastructure the state relies on. It’s never an easy conversation, especially during high cost of living and we know the time is never right for a price increase. But the alternative – postponing necessary upgrades and increasing service failures – is far worse. Choosing to delay investment in assets now will cost us all more in the future.

“TasWater in very mindful of the cost of living challenges for Tasmanians and has tried to strike the balance of investing in assets now against kicking the can down the road,” said Mr Lovell.

While these proposed changes are significant, TasWater is committed to ensuring support is available to anyone who needs it.

“We understand any increases to our customer bills may impact them, that’s why we have boosted our TasWater Assist program, to help those who need it most,” said Mr Ingham.

The Regulator will now conduct a six-week public consultation period before price and service standards for water and sewerage services in Tasmania are finalised for implementation from 1 July 2026.

We encourage Tasmanians to share their views via the Tasmanian Economic Regulator’s website, visit: Office of the Tasmanian Economic Regulator.

For more information on TasWater’s proposal, visit: Our water future.

---

Media release – Eric Abetz, Treasurer, 2 February 2026

Draft Water and Sewerage Price Determination Welcomed

The Tasmanian Government today welcomed the Tasmanian Economic Regulator’s Draft Report for the 2026 Water and Sewerage Price Determination Investigation, along with the Proposed Price Determination.

The independent regulator has recommended annual price increases of 4.3 per cent over four years, far below the 8.8 per cent increases proposed by TasWater.

Under the draft decision, the average residential customer would see an estimated increase of about $54 in 2026 to 27 and around $112 for a typical small business.

“The Regulator has undertaken a rigorous assessment of TasWater’s proposal, including its operating and capital programs, pricing structure and long term financial assumptions,” the Treasurer said.

“This is exactly why Tasmania has an independent economic regulator. It protects consumers, strengthens accountability and ensures decisions are based on evidence, not politics.”

The Treasurer said the independent process stands in stark contrast to Labor’s scare campaign in the days leading up to the draft determination.

“It is disappointing, although not surprising, that Labor has chosen fear mongering instead of waiting for facts,” the Treasurer said.

The Treasurer encouraged stakeholders and the public to engage with the consultation period, which is open until 13 March.

“The Government will make a submission and we encourage Tasmanians to participate in the conversation. This is a critical service and the process benefits from informed community input.”

The final determination will be released in May, ahead of the commencement of the new regulatory period on 1 July 2026.