Balance of price and service tested with water customers in latest engagement

Reducing fixed charges on customer bills and prioritising infrastructure investment will be on the table as the next stage of TasWater’s Water, it’s Tasmania’s thing! community engagement kicked off on 25 July.

TasWater Chief Financial Officer Kane Ingham said the engagement would inform the draft Price and Service Plan (PSP5) submitted to the Economic Regulator next year.

“Listening to our customers is central to determining how we shape the future of water across Tasmania,” Mr Ingham said.

“Decades of significant underinvestment in water and sewerage infrastructure means our network of pipes and treatment plants is not at the standard communities expect.

“More than 3,500 customers and community members have registered to have a say with 1,900 customers completing our first survey.

“Their priorities are clear - keeping bills affordable, fixing leaks and responding to faults quickly, and protecting and enhancing waterways and catchments were their areas of focus for the next five years.

“We are asking every Tasmanian to consider what impact increased investment will have on our prices, and what control they want over their bill from 1 July 2026.”

Investment choices tested with customers

TasWater has developed an innovative bill simulator that allows customers to move sliders to adjust the level of service they want and see how this affects their bill, and the bills of other customer types.

“This next phase of our community engagement helps provide context to the challenges we face for the future and literally puts choice at customers’ fingertips,” said Mr Ingham.

“Our water and sewerage network has suffered from historical underinvestment. To make the necessary improvements we will need to invest, but with many customers facing cost of living pressures, more control over water bills is something Tasmanians are asking for.

“Customers have benefited from price increases below inflation for the last four years and this will not be sustainable heading into the next pricing period. Prices will need to increase above inflation if we are to deliver improvements in services and reliability for our customers now and for future generations.

“This is why we are asking customers for input on what we prioritise, how we balance and apportion these increases to find the right balance between price and service that’s fair for all Tasmanians.

“In the bill simulator we’ve used the round figure of a $100 increase for a year from which customers can then manipulate their bill, up and down, based on their priority areas for services and investment.

“Fixing leaks and responding to faults is one area where we know improvement is needed, and customers will get to look at that in the context of the cost to accelerate this work.”

Addressing feedback on fixed vs variable charges

“Our current pricing structure has the highest fixed percentage for any water utility in the country, 84 per cent, meaning customers have limited control over their bills,” said Mr Ingham.

“We have listened to what our customers have been saying about how much of their bill they want to control. We are asking customers if they see benefit in reducing that fixed percentage and increasing the variable charges, meaning those that use less water pay less overall, and those that use more pay more. Either way, this is a revenue neutral outcome for TasWater, but we want customers to let us know what they think is fair for all Tasmanians”

Broadest and deepest engagement ever undertaken

This level of engagement is a first for TasWater with Tasmanians participating in online surveys, phone interviews, and an in depth community panel throughout 2024-25.

“Along with other inputs, the survey results will be considered on behalf of customers by a community panel of 45 individuals who are representative of Tasmania later this year,” said Mr Ingham.

“The panel will provide deep and detailed feedback for the price and service submission we will submit to the independent Economic Regulator by 30 June 2025 for their determination.

“The Regulator will consider this submission, and consult with Tasmanians ahead of making a final price and service determination for the period from 1 July 2026.

“We are now at a crossroads where maintaining ageing and poor performing assets is not a sustainable option into the future.

“To protect our environment, our health, our way of life, and our economy, we need to carefully consider what, where and when we invest in water and sewerage infrastructure for the benefit of all Tasmanians.

“We are excited that every Tasmanian will have the opportunity to be heard as we plan for a sustainable future."

TasWater will share the full report on its PSP5 engagement activities in March 2025.