TasWater

1. 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

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.

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.

15. Sub-meters – example? A saving of $176.07.

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. http://www.dpiw.tas.gov.au/inter.nsf/Attachments/JGAY-53L72E?open

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 $1,804.09. • These charges are also divided among the strata title owners, in proportion to the unit entitlements.

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: daniel.duharte@taswater.com.au • Northern Region – Jodie Terrington: jodie.terrington@taswater.com.au • North West Region – Trudy French: trudy.french@taswater.com.au