TASWATER hopes to reduce the number of towns on boil water alerts by two thirds in the next three years.
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Chief executive Michael Brewster briefed Tasmanian Chamber of Commerce and Industry members in Launceston yesterday about the first 12 months of the statewide corporation, its infrastructure plan and key priorities for the next decade.
Mr Brewster said last year's merger had captured the targeted $2.5 million in net savings for this financial year.
"We will probably finish around $2.7 million ... by next year we are expected to have delivered $5million in sustainable savings," he said.
"We've brought in a new operating model, completed a major restructure ... developed a strategy for the long term, which is sustainable.
"We've dealt with headworks and brought in a regime that is probably going to be better aligned with the state's interests and completed the draft of our price and services plan for the next three-year period [2015-18]."
Mr Brewster said equalising the pricing system for 2015-18 was a priority to ensure all customers paid the same price for water and sewerage services.
He said TasWater's intent was to bring the level of price increases down over the next 10 years and start to align them back to CPI.
A statewide Asset Management Plan is being developed and infrastructure projects will be prioritised by the state's regulators.
He said 70 per cent of TasWater capital spend would be on sewage infrastructure.
"In the next three years we want to see the number of boil water alerts drop from 26 to at least eight," Mr Brewster said.
"We have already started to ramp up programs to start addressing some of the sewer pipes and mains around the state where we are getting far too many bursts and chokes.
"We have a major capital spend in the order of $100 million to $110million a year for the next four or five years."