Some TasWater customers will see their water bills rise up to 20 per cent a year over the next three years without government intervention, Treasurer Peter Gutwein says.
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For some time, customers have either been paying below or above the target price due to historic council charges.
The Economic Regulator in 2015 approved a plan to put up bills of customers 10 per cent under the target each year.
The target needs to be reached by 2020.
Mr Gutwein said 7500 households and businesses were charged under the target tariff and some customers still had bills of more than 40 per below that tariff.
He said to achieve the regulator’s deadline, some bill may rise by up to 20 per cent in a year
Mr Gutwein said the government’s legislation would extend the transition period and cap increases at 7.5 per cent or $75 – whichever was higher.
During Wednesday’s inquiry hearing on the planned takeover, Mersey independent MLC Mike Gaffney said councils would lose money from dividends into the future as there was no expectation for the new water body to make a commercial return.
Mr Gutwein replied:
“Governments will act responsibly in regards to the returns they seek from businesses.”
He said councils broadly would benefit from an accelerated capital works plan sooner with 70 per cent on the program, worth less than $5 million, spread throughout the state.
“That economic activity leads to better water and sewerage outcomes and then leads to increased property prices, increased investment, and the revenue base that councils operate off will benefit over time.”