TasWater

Strata Communities Australia

Mike Paine

9/8/13

Reform Journey – Part 1• Tasmanian Government – industry review in 2006• Discussion Paper – released for comment• The Government and Owners disagree on structure• Government released compromise model in 2008• Corporations created - November 2008• Interim Operating Licence Issued 15 April 2009• Commenced operations – 1 July 2009• Operating Licence Issued – June 2010

Brief History• Prior to 1 July 2009 water and sewerage services were

provided by 29 Councils and 3 bulk water authorities.• Councils have boundaries.• Bulk Water – a not universal coverage• 23 towns on permanent boil water notices• The 2007/08 “State of the Industry” report stated:-

– That not one of the 78 Level 2 (EPA regulated) wastewater treatment plants fully complied with its licence – 31 in Southern Water’s region

– There are many water and sewerage tariff structures.– Difficult to assess the level of customer service due to a lack of

measurement and reporting practices

Reform Journey Part 2 - TasWater

• Opened our doors 1 July 2013

• Merger: Southern Water, Ben Lomond Water, Cradle Mountain Water & service firm, Onstream – four years after they opened their doors

• Statewide corporation owned by 29 local councils

• Dividends paid each year to local government

TasWater’s responsibilities• Water & sewerage

services for 200,000 customer connections

• Trade waste services for business & industry

• Irrigation / re-use water supplies

About TasWater

• Owner Representatives Group gives owner input

• Board of Management• New CEO & Executive Team• Approximately 760 employees statewide (no

headquarters)• Cost savings of $5M/a

Vital statistics

• Service area – 68,000 sq km• Population serviced – 470,000• Water connections – 201,800• Sewer connections – 179,100• Water supplied – 77,400 million litres pa• Sewage volume – 50,000 million litres pa• Total asset value - $1.7B

More vital statistics• Length of water mains – 6,380km• Drinking water treatment plants / dosing stations –

60• Pump stations – 716• Water supply dams – 121• Water catchments – 75• Length of sewer mains – 4,774kms• Level 1 sewage treatment Plants – 31• Level 2 sewage treatment plants – 79

Two-Part Pricing

From 1 July 2012, every Water customer with a water connection will have their water charges divided into two parts: • a fixed Water Service Charge and • a variable Water Usage Charge. These will replace

your existing Water Service Charge. A fixed Sewerage Service Charge continues to apply for customers with a sewerage connection.

Two-Part Pricing

• Over time, every customer in Tasmania will be paying the same price for the same service.

• Between FY12 and FY15 the Water and Sewerage Service target prices will increase by 6% each year.

• Water Usage Charge target price will increase in line with CPI for each of the next three years.

• If you have been paying water and sewerage charges much higher or lower than these target prices, you will move to the target prices over a number of years.

• Charges are not on top of existing charges

Two-Part Pricing

• 2012 to 2013 Target Pricing

Two-Part Pricing

• What is different for strata title properties:-– The size of the water connection required to service a

strata title property is generally larger than a single dwelling. This means that the connection attracts a higher fixed Water Service Charge. The target prices for each connection size are listed in the table below.

Metering

• TasWater’s policy is to install one boundary meter on the connection entering the property.

• The Water Service Charge and the Water Usage Charge will be divided between the owners according to the strata’s unit entitlements.

Sub-meters Strata title property owners do have the option of sub-

metering each strata title. One in all in. Sub-meters supplied by TasWater Owners cover the cost of installation Southern Water will read and maintain the meters In most cases, sharing a single boundary meter costs less per

strata unit than having a separate sub-meter.

Sub-meters – example?

Up to 4 units – 25mm connection, one 25mm shared meter

Fixed tariff$450.30/4= $112.58 each

Variable tariff92.34c/KL @ 800KL =$738.82 /4 = $184.68 each

Total charges/a/unit = $297.26

Sub Metered units – separate 20mm meters

Fixed tariff$288.65 each

Variable tariff 92.34c/KL @ 200KL$184.68 each

Total charges/a/unit = $473.33

A saving of $176.07.

Electing to sub-meter

• TasWater requires a one in, all in approach from strata owners in order to sub-meter a strata property.

• Check the Tasmanian Government’s publication ‘Strata living in Tasmania’ for information and legislation on how the body corporate can make this decision. http://www.dpiw.tas.gov.au/inter.nsf/Attachments/JGAY-53L72E?open

Fire Services

• Strata title properties may have a water service provided to support a fire sprinkler system or hose reels.

• Southern Water’s target price for fire service connections is 25% of the Water Service Charge for the fire service pipe size.

• Eg. A 50mm fire service charge is $451.02, rather than the full charge of $1,804.09.

• These charges are also divided among the strata title owners, in proportion to the unit entitlements.

Tenant billing• Tenant Billing Arrangements• TasWater’s legislated relationship for billing purposes is with the

owner of the property, not with the tenant.• Residential tenancy billing• In accordance with the Residential Tenancy Act (1997) Tasmania,

landlords may only seek water usage charges from tenants as long as there is an individual meter installed on the rental property.

• Where there is only one boundary meter serving a number of units that are tenanted, a landlord cannot fairly apportion water usage charges to the tenant of each property.

• Fixed water and sewerage charges are the responsibility of the property owner.

How sub-metering works

Sub-meter enquiries

• Southern Region – Daniel Duharte: daniel.duharte@taswater.com.au

• Northern Region – Jodie Terrington: jodie.terrington@taswater.com.au

• North West Region – Trudy French: trudy.french@taswater.com.au