TasWater leaders privately called sewerage pricing a 'blatant mistake', documents show

The pricing structure was approved by the Office of the Tasmanian Economic Regulator and applies from July 2026 to June 2030. It changed how some non-residential customers are billed for the fixed component of their sewerage charge, basing it on water connection size rather than their estimated demand on the sewerage network. One business owner told the ABC their bill rose from $630 a month to $3,800 a month, while a sporting association reported a $1,400 monthly increase.

Before the change took effect, TasWater had warned that some customers could be disadvantaged and proposed charging customers with larger pipes as though they had a smaller 20mm connection. The regulator rejected the remedy, saying it would create inconsistencies. In its April final report, the regulator said TasWater expected the proposal would mostly capture sports fields, sporting grounds and reserves, but that other customers needing large connections for pressure or operational reasons would not be caught.

On September 10, after concerns about the increases were reported in the media, Premier Jeremy Rockliff issued a statement urging TasWater to pause the billing structure and work with stakeholders. The release was forwarded to TasWater leadership. That day Theo wrote to Young that the premier's request was, in his view, a regulatory matter: "We should consider our response, what he is asking for is not for us in my opinion its a regulatory matter."

Young replied that it would be worthwhile for the premier or treasurer to write to the economic regulator asking what could be done to correct the error: "I think it is a blatant mistake and miscalculation that needs to be corrected."

The following day, Theo wrote that any review to address the mistake had to keep TasWater's total revenue unchanged, saying that if non-residential sewer access charges went down, something else would have to go up to maintain revenue neutrality. At a September 15 meeting, the regulator asked TasWater to investigate the issues with the new structure, and TasWater reiterated that any adjustments would need to be revenue neutral.

By September 30, TasWater believed 187 non-residential customers would see bills rise by at least $10,000 over the year, at least double the previous year, and estimated a cohort of 1,070 customers with connections greater than 50mm and no dedicated fire connection as potentially exposed. It estimated that relief for 91 customers whose bills rose by more than $500 and 50 per cent would reduce revenue by $1.25 million. A TasWater document said the increases may have affected 33 sporting fields and 62 mixed-use sporting facilities.

On October 2, TasWater said it would pause bills for some customers and investigate a new way forward.

A regulator spokesperson said the "prevalence and significance" of varied connection arrangements, including combined fire and water connections, were "not brought to its attention" during the price investigation, and that it began discussions with TasWater once this became apparent. The spokesperson said the regulator sets only the maximum TasWater may charge, and the utility is free to charge less.

TasWater general manager of customer and community Callan Paske said eligible customers who manage sports grounds were notified as of October 28 and their bills are being amended, while a solution is still being developed for other eligible customers. "Their bills remain paused while we work through this," he said. He said no additional costs would be passed onto customers, but the costs would need to be absorbed and could potentially require deferral of some infrastructure investment.