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TasWater – Water Pricing


Dr Rosalie Woodruff MP

Dr Rosalie Woodruff MP  -  Wednesday, 1 December 2021

Tags: TasWater

Dr WOODRUFF - The high capital costs which TasWater is engaging with for very important reasons are, particularly in relation to Bryn Estyn, which is 50 per cent greater than it was expected to be two years ago - you talked about productivity savings across the business - $32 million has been achieved. That extra $83 million is a lot to absorb. Can you please talk about how that's going to be levelled out over the forward period and whether there will be price increases to customers and how they'll be spread across the state?

Mr BREWSTER - As I said earlier, yes, when we did the initial estimate like any initial estimate before you do the detail, it was a lower price but that's always the case when you're well out.

Dr WOODRUFF - Sure.

Mr BREWSTER - Some projects are going to be higher, some are going to be lower. As we came into this PSP, we had a more accurate assessment. We've done that extra bit of work with the independent estimation, the detailed design, which then gets built into our price and service plan.

There will be no increase beyond what we've put up and there is no necessity for an increase beyond what we put up for the Bryn Estyn plant. It is fully accounted for in the go forward on the 3.5 per cent on the prices. There are swings and roundabouts. Some projects come out lower, some get higher. Some things you put back to further years to allow for it. What you have to do is ensure you can fit within the envelope. We're doing that and so I have no concern about the impact of Bryn Estyn.

What I am concerned about is that customers get a decent drinking water supply that they can rely on for decades to come. That's absolutely what we're doing. As Tony said earlier, the project is on time and on budget. If anyone wants to see, we can arrange to send a video which will show you exactly how we've got already with that plant, which is well and truly underway.