1. Strata Communities Australia Mike Paine 9/8/13
TasWater
Strata Communities Australia
Mike Paine
9/8/13

2. 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

3. 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
32 utilities serving people, ie one for every people
Large utilities eg LCC and Hobart Water
Small utilities eg Flinders & Tasman Councils
In 2006 the state government commissioned a report that concluded that not all Councils were unable to access expertise or provide affordable and sustainable services.
Update is now 6

4. 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

5. TasWater’s responsibilities
Water & sewerage services for 200,000 customer connections
Trade waste services for business & industry
Irrigation / re-use water supplies

6. 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

7. 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

8. 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

9. 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.
Total $ compared to $470 if single or sub metered. In this case each unit would have to consume an extra 200kl to get to break even

10. 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

11. Two-Part Pricing
2012 to 2013 Target Pricing

12. 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.

13. 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.

14. 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.
Total $ compared to $470 if single or sub metered. In this case each unit would have to consume an extra 200kl to get to break even

15. Sub-meters – example?
Up to 4 units – 25mm connection, one 25mm shared meter
Fixed tariff
$450.30/4= $ each
Variable tariff
800KL =
$ /4 = $ each
Total charges/a/unit = $297.26
Sub Metered units – separate 20mm meters
$ each
200KL
$ each
Total charges/a/unit = $473.33
Total $ compared to $470 if single or sub metered. In this case each unit would have to consume an extra 200kl to get to break even
A saving of $

16. 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.

17. 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,
These charges are also divided among the strata title owners, in proportion to the unit entitlements.
Total $ compared to $470 if single or sub metered. In this case each unit would have to consume an extra 200kl to get to break even

18. 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.

19. How sub-metering works

20. Sub-meter enquiries
Southern Region – Daniel Duharte:
Northern Region – Jodie Terrington:
North West Region – Trudy French: