TasWater reassesses sewerage charges after 500% bill increases for some businesses

Tasmania's water utility is "assessing" changes to fixed sewerage charges that saw some non-residential customers facing a 500 per cent price increase.

TasWater said a number of businesses and community groups, such as manufacturers and sporting clubs, had been affected, and it would make changes to lessen the impact.

Under changes that came in from July 1, TasWater's fixed sewerage charges were based on the size of a property's water pipe connection, not their sewage usage.

"We've heard the feedback from this specific customer group, and we need to own and reflect on that while taking action to rectify the issue," TasWater general manager Callan Paske said in a statement.

"While our charging methodology has resulted in lower charges for many customers, the transition has had unintended consequences for a number of customers whose large water connections do not reflect the comparatively low demand they place 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.

It also said it would adjust pricing for sporting clubs which primarily used water to irrigate.

Both changes will be backdated to July 1.

Tasmanian businesses and sport clubs had said they were hit hard by the changes, with one business stating their bill had risen from $630 to $3,800 a month — a 500 per cent increase.

TasWater explained it had made the now-paused changes because an independent inquiry recommended it move away from its previous sewerage charging method.

Government welcomes changes

In a statement, Premier Jeremy Rockliff welcomed the "pause and rethink".

He said the changes followed discussions between his government, TasWater, the Tasmanian Economic Regulator and the local government sector.

"We called for relief from excessive increases, and TasWater has responded constructively," he said.

"This demonstrates what can be achieved through sensible and mature discussions as we all now focus on securing a fair outcome for the Tasmanian community.

"The pause will provide important relief for affected businesses and community organisations who need our support."

The price rises for water usage, including for households, are not affected by today's announcement.

The economic regulator knocked back TasWater's request to rise water prices by 8.8 per cent over four years.

Instead, prices will rise by an average of 5.7 per cent each year for the next four years.