26 Feb 2026
More control over your bills: using less, paying less
Giving customers more control over their bills is one of the key changes we proposed in our Fifth Price and Service Plan (PSP5). Right now, most Tasmanians don’t see much difference on their bill even when they use less water, and that’s something we need to fix. Our PSP5 proposal put forward a clear path to shift the balance, so customers who use less can genuinely pay less, while still making sure our essential services remain reliable and sustainable for the long term.
What is the problem?
Our customers are currently paying the highest proportion of fixed charges in Australia, with around 84 per cent of the average residential bill being fixed and only 16 per cent variable. This means households have very little control over how much they pay because using less water doesn’t make much difference to their bill.
This structure also doesn’t encourage water-saving behaviour, even though Tasmania faces pressures from climate variability, ageing infrastructure and increased demand.
What is the plan?
Our PSP5 proposal recommended a shift to a more usage-based model, increasing the variable component from 16 per cent to 33 percent to give customers greater control over their bills.
In its draft determination of our PSP5 proposal, the Tasmanian Economic Regulator has proposed a variable component of just 18 per cent, moving only two per cent from the current position.
At 18 per cent, the variable charge is simply too low to make a noticeable difference to most household bills.
This is why our proposal goes further, setting out a clearer path to a better balance between fixed and variable charges.
Key elements of our proposal include:
- Lowering fixed charges while adjusting the variable component of the average residential bill to 33 per cent. While we propose to increase our prices by 8.8 per cent per year across PSP5, changes to the variable component mean around half of customers would see a bill increase of just 2.6 per cent in the first year - less than forecast inflation – with further increases applying in years two, three and four.
- Introducing a variable sewerage charge, aligned with the Tasmanian Economic Regulator’s 2024 review. This links part of sewerage costs to water use, so those who use less water generally, will pay a lower sewerage charge.
- Providing a customer education program to help people understand the new pricing structure and access support if they have higher water use.
- Boosting our TasWater Assist program by $2.4 million to expand support for vulnerable customers, including flexible payment plans and tailored assistance to help manage water bills.
These changes are designed so household decisions about water use actually show up on the bill in a clear, meaningful way.
What are the goals?
- Lift the variable component of the bill to 33 per cent, giving people more influence over what they pay.
- Reward water-wise behaviour by ensuring lower water use results in a lower bill.
- Improve fairness and transparency in bills.
- Support broader PSP5 investments by encouraging long-term sustainable water use.
Why it matters
During our PSP5 engagement, customers told us they wanted more control over their bills. Our proposal to the Tasmanian Economic Regulator delivered a meaningful shift toward that.
“I’d prefer to see the fixed component reduced and a higher rate for how much water you actually use.”
A higher variable component means the choices people make each day - from shorter showers to fixing leaks at home - will have a real impact.
It also supports Tasmania’s long-term water security, helping reduce pressure on the system while we continue to make major investments to upgrade ageing assets and improve reliability across the state.
Click here to read more about our Price and Service Plan.