The standard charge is based on TasWater’s growth and capacity plans which ensure ongoing capacity for future developments. The standard charge of $3,514 per equivalent tenement (see FAQ 6) is calculated on forecast incremental growth-related capital and operating expenditure, as well as forecast incremental revenue from new customers over the same period.
The bulk charge applies to network capacity upgrades. It is calculated on the capital and operating expenditure associated with the network capacity upgrade and the forecast revenue stream from new customers projected to connect to the upgraded network.
Accordingly, both the standard charge and the bulk charge relate to capacity, not extension, and the cost of system extension has been excluded from the calculations.