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PSP3 Extension Questions and Answers

This information is also available to download here, which includes a summary of charges for 2021-22.

What is PSP3?

  • The Price and Service Plan 3 (PSP3), covering the period from 1 July 2018 to 30 June 2021, is TasWater’s three-year plan to ensure we can maintain the delivery of clean and safe drinking water, improve environmental and customer outcomes
  • In 2018 there was a Memorandum of Understanding (MOU) between State Government, TasWater Owners Representative Group and TasWater. This MOU allowed for a price freeze, including transition in the Financial Year 2019/20.
  • Due to the economic and financial impacts from the coronavirus (COVID-19) pandemic on TasWater and our customers, the Tasmanian Government granted an extension to PSP3 for an additional year. This extension resulted in an additional price freeze for Financial Year 2020/21 to support our customers through the pandemic. PSP3 will now conclude 30 June 2022, with PSP4 to cover the period 1 July 2022 through to 30 June 2026.

What does it mean for me?

  • From the financial year beginning 1 July 2021, there will be a 3.5 per cent price increase for customers. This is the first-time prices have increased since 1 July 2018.
  • The 3.5 per cent price increase was originally outlined in the July-September 2018 customer newsletter as coming into effect in 2019/20 but was paused to help support our customers through the COVID-19 pandemic.
  • It’s important we can continue investing in the state’s infrastructure, while keeping bills as affordable as possible.
  • Through the development of the PSP, TasWater works hard to balance our operating needs in the short term, the complex investment needs for a sustainable water and sewerage utility for the long term, with the need to meet our customers’ expectations at an affordable price.
  • The Tasmanian Economic Regulator scrutinises the plan to ensure TasWater delivers the value for money our customers expect.

Are my bills going to cost more?
  • Yes, your bill will increase by 3.5 per cent. This applies to each service and usage.
  • TasWater’s pricing is determined by the Office of the Tasmanian Economic Regulator
  • For most households will result in an additional cost of about $42 per year

  • A modest price increase will allow TasWater to continue to improve water and sewerage infrastructure and protect the health of Tasmanians and the environment
  • We are a statewide organisation that inherited a lot of small-scale infrastructure, which in many cases requires upgrades to meet our health, environment or safety requirements.
  • This fact alone increases our expenditure to maintain our essential services, and this expenditure is linked to our prices.
  • PSP3 is about much more than what our customers pay, it is a plan that ensure our services are sustainable, efficient and able to meet our customers’ expectations.
  • TasWater continues to invest in both maintenance and construction of essential infrastructure to ensure our services are provided to our customers with minimal disruption.

What if I can’t pay my bill?
  • We have a range of ways to support our customers who may be experiencing financial hardship.
  • We have a dedicated Customer Support Program team who can work with individual customers to create flexible solutions that meet their needs, whether it is in the short or long-term.
  • Visit for more information.

What is the difference between a variable charge, fixed charge and service charge?

  • The variable charge applies to water usage and reflects the amount of water used on a property as measured through a water meter. In FY2021/22, the variable charge is $1.0991 per kL.
  • The fixed water charge recovers the cost to manage our treatment and network assets. These are costs that do not change regardless of the volumes of water or sewage they convey and represent about 80 per cent of our total costs. The fixed charge is based on the size of the connection to the property. Most Tasmanian homes have a 20mm connection which is charged at $354.96 for FY2021/22.
  • For sewerage, the fixed charge is based on the load a property places on the sewerage system. This is called an equivalent tenement (ET). One ET is equal to the sewage discharge from an average single residential house. ET rates for different land uses are calculated as being a factor of this average sewage discharge rate. In FY2021/22, one ET is charged at $681.16.
  • Finally, there is also a service charge for properties that are within serviced land area but that are not connected to water and/or sewerage networks (see “I am not connected to TasWater’s infrastructure (vacant land, or otherwise). Why do I receive a bill from TasWater?”).