Household water price hike possible as TasWater applies for $735m loan

Tasmania's only water and sewage utility has not ruled out raising future residential bills to help manage rapidly rising debt associated with coronavirus.They have been told the entity is in financial trouble and has applied for a loan of up to $735 million

According to its last annual report, the utility recorded an operating profit of $41.3 million in 2018-19. Members of the Local Government Association — that is, council heads who represent TasWater's major shareholder councils — will make a submission to an ongoing Legislative Council inquiry into TasWater to raise concerns about the body's financial situation and ongoing viability.

In a statement, a TasWater spokeswoman said: "This has been required to allow us to maintain our significant capital expenditure program and deliver the associated economic benefits for the state … while at the same time absorbing the financial impacts of COVID-19, including our commitment to a rebate for small businesses and a price freeze for all customers."

The TasWater spokeswoman said the agency was unable to raise its prices above the regulatory allowance of about 3 per cent before June 2022.

And the reckoning begins

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