Water bills were set to rise sharply — again. But this time, the regulator stepped in. A bold proposal hit a wall, and Tasmanians caught a rare break. The bigger fight, though, may just be delayed.
Regulator Cuts TasWater’s Ambitious Proposal in Half
TasWater had pushed for a steep 8.8% annual increase on water bills over four years. If approved, households would have paid an extra $91 per year starting in 2026–27. But Tasmania’s independent economic regulator knocked that back in a draft decision, slashing the figure nearly in half.
The new approved rise is 4.3% per year, bringing the average increase down to $54 for households. For small businesses, the difference is more striking: their expected hike was trimmed from $251 to $112, reports ABC News.
Infrastructure Needs Still Loom Large
The reason behind TasWater’s request was clear: the utility wants to roll out a $1.7 billion capital works program over four years. Projects include upgrades to Hobart’s Ridgeway Dam and Pet Dam in Burnie, as well as ongoing work to address aging treatment plants — only 9% of which currently meet all environmental licence conditions.
The regulator didn’t dispute the need for upgrades. But Joe Dimasi, who made the ruling, said the schedule was “not prudent” and recommended that TasWater spread the projects over a longer period to maintain affordability.
TasWater Accepts, Cautiously
Kane Ingham, TasWater’s CFO, said the company would take time to assess the draft. However, he warned that delaying upgrades could raise risks — both in terms of potential system failures and rising future costs. In other words, the longer it waits, the more expensive things may become.
There’s no doubt that infrastructure investment is overdue — but how fast it should happen, and how much customers should bear, is far from settled.
Political Reactions Unusually Aligned
In a rare moment of bipartisan calm, both the state government and the opposition welcomed the regulator’s restraint. Treasurer Eric Abetz called it a “consumer win,” while Labor’s Dean Winter said the proposed price hikes were “out of touch” during a time when cost-of-living pressures are already high.
Still, both sides are likely to keep watching what happens next.
Final Verdict Coming in May
This was only a draft. The final decision is due in May, and TasWater could come back with changes. For now, Tasmanians have avoided the sharpest rise — but the challenge of fixing what’s broken, without breaking budgets, is far from over.
