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TasWater will change fixed sewerage charges backdated to July 1 after non-residential customers faced increases of up to 500 per cent, Premier Jeremy Rockliff welcomes the pause.
TasWater has announced it will rectify fixed sewerage charges that left some non-residential customers in Tasmania facing price increases of up to 500 per cent, with changes to be backdated to July 1, 2026. The utility said businesses and community groups, including manufacturers and sporting clubs, had been affected by the new charging method introduced at the start of the financial year.
The issue emerged after TasWater changed how it calculated fixed sewerage charges from July 1, basing them on the size of a property's water pipe connection rather than the amount of sewage a customer produced. One business reported that its bill had risen from 630 dollars to 3,800 dollars a month under the new system.
TasWater Reviews Fixed Sewerage Charges
TasWater general manager Callan Paske said in a statement that the utility had heard feedback from the specific customer group and needed to own and reflect on that while taking action to rectify the issue. He said that while the charging methodology had resulted in lower charges for many customers, the transition had unintended consequences for a number of customers whose large water connections did not reflect the comparatively low demand they placed on the sewerage system.
TasWater said it was working on a solution for those significantly impacted by fixed sewerage charges associated with large water connections but relatively low water use and discharge to the sewer. Both changes will be backdated to July 1.
The utility explained that it had made the now-paused changes because an independent inquiry recommended it move away from its previous sewerage charging method. The independent review prompted TasWater to reassess how costs were distributed among customers, but the transition produced unexpected outcomes for some non-residential users.
Premier Welcomes Pause on Sewerage Charge Changes
Premier Jeremy Rockliff welcomed the pause and rethink in a statement. He said the changes followed discussions between his government, TasWater, the Tasmanian Economic Regulator and the local government sector. He described the outcome as demonstrating what can be achieved through sensible and mature discussions as all parties now focus on securing a fair outcome for the Tasmanian community.
Rockliff added that the pause would provide important relief for affected businesses and community organisations who need support. The government's involvement came after concerns were raised about the impact of the new charging structure on local employers and community groups.
The Tasmanian Economic Regulator also played a role in the broader pricing framework. The regulator knocked back TasWater's request to raise water prices by 8.8 per cent. Instead, prices will rise by an average of 5.7 per cent each year for the next four years.
TasWater said it would continue to assess the changes to fixed sewerage charges and work on a solution for those significantly impacted. The utility has not yet detailed the exact form the revised charges will take, but confirmed that any adjustments will be backdated to July 1 to align with the original start date of the changes.
The affected customer group includes non-residential users such as manufacturers and sporting clubs, which often have large water connections but relatively low sewage discharge. TasWater acknowledged that the previous method did not account for the difference between connection size and actual demand on the sewerage system, leading to the unintended consequences now being addressed.
The pause and planned rectification aim to balance the utility's need to recover costs with fairness for customers who use less of the sewerage system than their connection size might suggest. TasWater said it would keep customers informed as the solution is finalised.
Taswater Sewerage Charges Jeremy Rockliff Tasmania Tasmanian Economic Regulator Water Prices Callan Paske
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