Trade Waste Price Separation Example
(previous North West Customer)
Category 2 Commercial Customer
TasWater committed through the Price and Services Plan 2012-2015 to transitioning all
customers receiving a regulated service onto an equitable pricing structure which ultimately
recovers the cost for providing the service. The plan has been approved by the Economic
Regulator and includes pricing for the provision of trade waste services. The applicable
target tariffs for sewerage and trade waste services are detailed in the table below:
Charge Type
Financial Year
Sewerage
2013-14
Sewerage Fixed – Per
$631.72
Equivalent Tenement#
Trade Waste
2013-14
Category 2 Target Tariff
$1670.33
#
2014-15
$669.63
2014-15
$1713.76
Equivalent Tenement is a measure of the demand that a property places on infrastructure in terms of water consumption and sewerage
discharge, compared to a standard residential allotment
Transition Process
For existing Category 2 trade waste customers who receive a trade waste service but who
historically have not been levied a separate trade waste charge the following transition
process will apply:
trade waste charges will be introduced by reducing the sewerage service charge by
the applicable trade waste target tariff; or
in the event the current sewerage charges do not allow for the full trade waste
target tariff to be split out, the resulting sewerage and trade waste charges will each
increase under the applicable price constraints (i.e. the greater of 10 per cent or $50
multiplied by the number of ETs assessed for the property).
The two scenarios presented above are shown in the following examples:
Example 1 – Trade Waste Target Tariff < Current Sewerage Charge
Example Restaurant is a Category 2 Trade Waste discharger. The restaurant has previously
been assessed by TasWater as having an ET value of 4. This means that in 2013/2014 this
restaurant has a target sewerage charge of 4 x $631.72 = $2526.88. The trade waste charge
is separated out from the current sewerage charge as follows:
Transition to Sewerage Charge Target Tariff
13/14 Sewerage
Charge
$856.55
13/14 Trade Waste
Target Tariff (Cat 2)
$1670.33
Inc. 4ET x $50
=$200
14/15 Sewerage
Charge
$1056.55
Inc. 4ET x $50
=$200
15/16 Sewerage
Charge
$1256.55
14/15 Trade Waste
Target Tariff (Cat 2)
$1713.76
Target Tariff increases by 2.6%/annum
in accordance with Price and Services
Plan
13/14 Current
Sewerage Charge
(4ET)
$2526.88
Example 2 – Trade Waste Target Tariff > Current Sewerage Charge
Example Restaurant is a Category 2 Trade Waste discharger. The restaurant has previously
been assessed by TasWater as having an ET value of 4. This means that in 2013/2014 this
restaurant has a target sewerage charge of 4 x $631.72 = $2526.88. The restaurant
currently has a sewerage charge of $1350.00 which is less than both the target tariffs for
sewerage and trade waste services. The trade waste charge is separated out from the
current sewerage charge as follows:
13/14 Sewerage
Charge
$0
Inc. 4ET x $50
=$200
14/15 Sewerage
Charge
$200.00
Inc. 4ET x $50
=$200
15/16 Sewerage
Charge
$400.00
13/14 Trade Waste
Tariff (Cat 2)
$1350.00
Inc. 4ET x $50
=$200
14/15 Trade Waste
Target Tariff (Cat 2)
$1550.00
Transition to Trade Waste Target Tariff
Transition to Sewerage Charge Target Tariff
13/14 Current
Sewerage Charge
(4ET)
$1350.00