Presentation on theme: "Strata Communities Australia Mike Paine 9/8/13"— Presentation transcript:
1Strata Communities Australia Mike Paine 9/8/13 TasWaterStrata Communities AustraliaMike Paine9/8/13
2Reform Journey – Part 1 Tasmanian Government – industry review in 2006 Discussion Paper – released for commentThe Government and Owners disagree on structureGovernment released compromise model in 2008Corporations created - November 2008Interim Operating Licence Issued 15 April 2009Commenced operations – 1 July 2009Operating Licence Issued – June 2010
3Brief HistoryPrior 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 coverage23 towns on permanent boil water noticesThe 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 regionThere are many water and sewerage tariff structures.Difficult to assess the level of customer service due to a lack of measurement and reporting practices32 utilities serving people, ie one for every peopleLarge utilities eg LCC and Hobart WaterSmall utilities eg Flinders & Tasman CouncilsIn 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
4Reform Journey Part 2 - TasWater Opened our doors 1 July 2013Merger: Southern Water, Ben Lomond Water, Cradle Mountain Water & service firm, Onstream – four years after they opened their doorsStatewide corporation owned by 29 local councilsDividends paid each year to local government
5TasWater’s responsibilities Water & sewerage services for 200,000 customer connectionsTrade waste services for business & industryIrrigation / re-use water supplies
6About TasWater Owner Representatives Group gives owner input Board of ManagementNew CEO & Executive TeamApproximately 760 employees statewide (no headquarters)Cost savings of $5M/a
7Vital statistics Service area – 68,000 sq km Population serviced – 470,000Water connections – 201,800Sewer connections – 179,100Water supplied – 77,400 million litres paSewage volume – 50,000 million litres paTotal asset value - $1.7B
9Two-Part PricingFrom 1 July 2012, every Water customer with a water connection will have their water charges divided into two parts:a fixed Water Service Charge anda 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
10Two-Part PricingOver 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
12Two-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.
13MeteringTasWater’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.
14Sub-metersStrata title property owners do have the option of sub-metering each strata title.One in all in.Sub-meters supplied by TasWaterOwners cover the cost of installationSouthern Water will read and maintain the metersIn 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
15Sub-meters – example?Up to 4 units – 25mm connection, one 25mm shared meterFixed tariff$450.30/4= $ eachVariable tariff800KL =$ /4 = $ eachTotal charges/a/unit = $297.26Sub Metered units – separate 20mm meters$ each200KL$ eachTotal charges/a/unit = $473.33Total $ compared to $470 if single or sub metered. In this case each unit would have to consume an extra 200kl to get to break evenA saving of $
16Electing to sub-meterTasWater 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.
17Fire ServicesStrata 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
18Tenant billing Tenant Billing Arrangements TasWater’s legislated relationship for billing purposes is with the owner of the property, not with the tenant.Residential tenancy billingIn 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.