Business sees 500pc sewage bill increase in wake of TasWater changes
When Lyndall Healey opened her monthly TasWater bill for July, she assumed there had been some kind of mistake.
The manager of a steel fabrication business in northern Tasmania said the business's fixed sewerage average cost had risen from $630 a month to $3,800 a month.
"Effectively, that was a 500 per cent increase," Ms Healey said.
Lyndall Healey initially thought the bill was a mistake. (Supplied)
She said when she contacted TasWater, thinking something was wrong, they said the changes were "to bring Tasmania in line with other states".
"That's an extra $40,000 a year that our business has to find,"
she said.
For one business, the increase has been in the thousands of dollars. (ABC News: Georgia Hogge)
"That's three quarters of somebody's wage you're losing, that you have to pay through TasWater costs that have just come out of the blue".
"It's all just been signed, sealed and delivered and it's just like, has anybody been consulted about this?"
Ms Healey said she wasn't the only business faced with an increase in sewerage charges.
Collin Burns is the president of the Trevallyn Parks and Improvement Association and said he is concerned about how his sports clubs are going to survive with the price increase.
The Trevallyn Bowls Club has been operating for 10 years. (ABC News: Georgia Hogge)
Mr Burns said his most recent quarterly TasWater bill contained a $1,400 increase.
The bill, seen by the ABC, showed fixed sewerage charges for the Bowls Club have increased by $335, the Tennis Club increased by $196 and the Cricket Club increased by $881.
Collin Burns says there are many businesses affected by the change. (Supplied)
Mr Burns said the sports clubs rely on volunteers and club members and make most of their money through raffles and alcohol sales.
"I just don't know where these little clubs are going to get the extra money from,"
he said.
Price hike intended to be 'equitable'
TasWater made changes to its fixed water and sewerage fees at the start of July this year.
Last year, TasWater applied to the Tasmanian Economic Regulator for an 11.5 per cent average increase each year over the period, which sparked outcry from community groups, the state government and the opposition.
In a draft determination released in February this year, regulator Joe Dimasi knocked that back.
Instead, water bills for Tasmanian households and small businesses will rise by an average of 5.7 per cent each year for the next four years.
It means an estimated average increase of $80 for households in 2026–27, taking the yearly bill to $1,487.
Tasmanian sports clubs say they're unsure how they are going to afford hundreds of dollar increases in water and sewerage prices. (ABC News: Georgia Hogge)
In a statement, TasWater general manager of Customer and Community, Callan Paske, said the changes are "intended to create a more equitable and transparent pricing framework".
"The 5.7 per cent increase refers to the average annual change in water and sewerage charges across Tasmania," he said.
"Individual customers may see increases higher or lower than this depending on the specific services they receive and changes to the way sewerage charges are calculated.
"Under the new pricing model approved by the Tasmanian Economic Regulator, fixed sewerage charges are now charged on the size of the property’s water meter connection, and a variable sewerage charge has been introduced.
"We do not set our own prices, they are set through an independent regulatory process undertaken by the Tasmanian Economic Regulator.
Mr Paske said the "approach is intended to create a more equitable and transparent pricing framework by aligning charges more closely with the capacity required from the sewerage system".
The state government has called for TasWater and councils to pause the price increases. (ABC News: Georgia Hogge)
Businesses calling for alternatives
Ms Healey said TasWater had offered alternative options which could help with the price increases.
One option would be to reduce the size of the business's sewerage pipes, which would require a development application to go through local council and TasWater.
"That process can take up to 12 months to do... and in the meantime, you've still got to pay the extra," she said.
TasWater says it undertook extensive consultation on the proposed pricing structure. (ABC News: Georgia Hogge)
She said she has no choice but to pay the extra.
One business has made a formal complaint to TasWater about the changes. (ABC News: Luke Bowden)
Collin Burns from Trevallyn Park said he has filed a complaint to TasWater.
"Connection size has absolutely no relationship to sewerage system use," he said.
Mr Burns estimated 95 per cent of the water that is used in Trevallyn Park goes on grass.
"It goes on the bowl greens and waters the cricket grounds ... a minor amount goes into the sewerage system," Mr Burns said.
He said the price increase is most likely going to affect more businesses around the state — and something has to be done about it.
Government wants price pause
Premier Jeremy Rockliff on Thursday called for TasWater and councils to pause the price increases.
"TasWater's sustained price increases are having a growing impact on community groups, sporting clubs, construction and businesses across the state," Mr Rockliff said.
"The Tasmanian government is calling on TasWater and councils to agree to pause these increases.
"We want to work with TasWater and Tasmania's 29 councils to determine a more sustainable way forward.
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