We have received the Tasmanian Economic Regulator’s Draft Report and Proposed Price Determination for our fifth Price and Service Plan (PSP5).

Annual price increase reduced from 8.8 per cent to 4.3 per cent

In our submission, we proposed annual price increases of 8.8 per cent to deliver essential infrastructure upgrades and meet operating costs. The Regulator has instead proposed an annual increase of 4.3 per cent, based on what they have described as “corrections and adjustments” to our proposal.

Investment program reduced from $1.7 billion to $1.2 billion

We proposed a $1.7 billion investment program for our assets over PSP5. The Regulator has reduced this to $1.2 billion. If this position remains unchanged in the Final Determination, some important capital projects may need to be deferred. Our proposed operating expenditure of $1.1 billion has also been adjusted to $1.0 billion across the four‑year period.

Usage proportion of bill reduced from 33 per cent to 18 per cent

Customers told us they want more control over their bills. To support this, we proposed increasing the variable component of the average bill from 16 per cent to 33 per cent. The Regulator has instead recommended an increase to just 18 per cent. In our view, this smaller adjustment provides limited incentive for customers to manage their water use more efficiently.

Next steps

We will now review the Draft Report in detail and provide a formal response by 13 March 2026. We anticipate the final determination in late April 2026.

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.