TasWater's proposed 8.8 per cent bill increase knocked back by regulator
It will mean a bill increase of $54 for the 2026-27 financial year, as opposed to $91 under TasWater's proposal. (ABC News: Lucas Hill)
In short:
Household water bills will increase by $54 next year under the economic regulator's draft pricing decision.
It is less than half of what was asked for by TasWater, which wants to embark on its biggest infrastructure upgrade program.
What's next?
The final decision from Economic Regulator Joe Dimasi is due in May, with TasWater assessing his call.
Tasmanian households have dodged a bill hike bullet, with the state's economic regulator knocking back TasWater's proposed annual fee hikes of 8.8 per cent for the next four years.
Instead, Economic Regulator Joe Dimasi will allow an average rise of 4.3 per cent.
It equates to a bill increase of $54 for the 2026-27 financial year, as opposed to $91 under TasWater's proposal.
Small businesses will see a $112 increase next financial year, down from a proposed $251.
The state's water and sewerage authority, which is jointly owned by councils and the state government, had asked for the increase to help it fund infrastructure upgrades.
Mr Dimasi said it was "not prudent" for TasWater to attempt all of the works it had proposed over the next four years, and that they should take place over a longer period.
Joe Dimasi said it was "not prudent" for TasWater to attempt all of the works it had proposed over the next four years. (ABC News: Simon Tucci )
"The long-term challenges that TasWater is facing in modernising Tasmania's aging water and sewerage infrastructure are real and ongoing," he said.
"My draft decisions aim to strike the right balance between affordability for customers and the need for TasWater to continue investing in its infrastructure."
A final decision from the economic regulator, which sets water and energy prices, is due in May.
The state's water and sewerage authority had asked for the increase to help it fund major infrastructure upgrades. (ABC News: Luke Bowden)
Water and sewerage not meeting standards
TasWater's CFO Kane Ingham said the company would "take some time" to analyse the draft and "assess what it means" for water and sewerage infrastructure.
"We know there are risks in delaying projects, not just because of the heightened risk of failures in aging infrastructure and their impacts, but also because the longer these projects are put off, the more expensive they are likely to be," he said.
TasWater had proposed $1.7 billion in capital works from 2026-2030, including upgrades to Hobart's Ridgeway Dam and Pet Dam at Burnie.
TasWater's CFO Kane Ingham said the company would "take some time" to analyse the draft. (ABC News: Luke Bowden)
It says just 9 per cent of its treatment plants are compliant with all environmental licence conditions.
The economic regulator has backed changes to TasWater's tariff structure, which would see fixed charges become a lower proportion of the bill.
However, it says this needs to take place more slowly than what TasWater has proposed.
The state government and opposition had flagged concerns about the original proposal and the impact on households.
Treasurer Eric Abetz welcomed the draft decision, praising the regulator's rigorous assessment.
"This is exactly why Tasmania has an independent economic regulator: it protects consumers, strengthens accountability and ensures decisions are based on evidence, not politics," he said.
Labor's treasury spokesperson Dean Winter said the proposal was "out of touch", and that he was happy to see the regulator "knock it on the head".
"Families were staring down massive bill increases at a time when cost of living pressures are already biting hard,"he said.
"This decision confirms that these price hikes were unjustified and unfair."
Mr Abetz said Labor had run a scare campaign on the issue, choosing "fear mongering instead of waiting for facts".