Spike in water bills looms

Tasmanian residential water and sewerage customers are facing a possible increase of $100 on their annual bills.

The state’s three water corporations have released their draft pricing plan for 2012 through to 2015.

Each corporation is proposing a different annual target tariff rate for standard residential customers.

Cradle Mountain Water is the highest at $978, Ben Lomond is proposing a rate of $949, while Southern Water wants to charge an average of $942 per customer.

Households with both water and sewerage connected face a maximum increase of $100 a year, or 10 per cent of what they paid this year; whichever figure is greater.

Customers who are already paying more than about $1,000 will not see any increase over the period.

Andrew Kneebone from Cradle Mountain Water says the company needs to increase revenue.

“We’re currently a fairly marginal business in terms of profitability and we also have a large challenge in front of us in terms of bringing infrastructure [like] pipes, pumps, treatment plants up to compliance standards,” he said.

“That’s going to cost additional money over what we’re currently raising.”

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