In another hit to cost of living pressures, Tasmanians' water bills will increase by 3.5 per cent from July this year, and each year for the next four years.
It is the first-time prices have increased since July 1, 2018, and the increase means the typical residential customer could face an annual bill increase of $43 in 2022-23.
Tasmania's economic regulator, Joe Dimasi, has approved maximum annual price increases of 3.71 per cent for each year until 2026.
Prior to the decision being handed down, TasWater proposed a price increase of 3.5 per cent each year, consistent with an agreement they signed with the Tasmanian government and the TasWater Owners' Representatives Group committing to limit any annual price increase to 3.5 per cent until 2024-25.
TasWater is honouring that memorandum of understanding, meaning the increase will be set at 3.5 per cent, and TasWater will increase prices by 3.5 per cent each year until 2025-26.
By 2025-26, the average bill will be around $180 more expensive than it was this current financial year.
He said the price increases were approved due to TasWater's "very large capital expenditure programme and its associated operating costs".
He also credited recent increases in the cost of debt and inflation.
"The increase is much less, however than TasWater's estimate of a 6.5 per cent annual increase to achieve full cost recovery by 2025-26," the regulator said.
TasWater now has to submit an updated price and service plan by June 7, 2022, that reflects the decisions set out by the regulator. The regulator will approve TasWater's plan in late June 2022
It is possible that electricity bills could also increase -- although it is largely out of the regulator's control as electricity bills are influenced by external factors such as network costs and wholesale electricity prices.
Aurora is yet to finalise its proposal for its prices for the next three years, but a current increase in wholesale electricity prices suggests there could be a hike when it comes to power too.
'People are really struggling to get by'
Tasmanian Council of Social Services chief Adrienne Picone said the rise was "just going to add to the cost of living pressures that Tasmanians are already under right now".
"Around 120,000 Tasmanians are living below the poverty line. That means they're struggling every day to make ends meet," she said.
"We're seeing increases in food, fuel and housing and all that means that people are really struggling to get by.
She called for a freeze on service fee increases and for any concessions to be "fair and equitable".
"What we know right now is the concessions are only available for owner-occupier dwellings, and those costs can be passed on to renters."
In a statement TasWater said the "conservative price increase will be used by TasWater to continue delivering quality service to our customers, updating ageing infrastructure, improving our service standards, and protecting the health of Tasmanians and the environment."
