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Objective

Recommendation

Key issues

What has been achieved 1998-2003

Tasmania Together

Further and related recommendations

Related Issue Reports

Objective

To better manage water demand equitably across a range of sectors, to provide better water consumption information at a range of scales, and to provide users and consumers with pricing signals that reflect the true environmental and economic costs of water provision.

Recommendation

It is recommended that:

• the introduction of water metering and the adoption of pricing structures be implemented consistently Statewide to better reflect the true costs of water supply (introduction of metering would be prioritised through social, economic and environmental cost-benefit analysis); and
   
• the transition from current fixed charges towards a system of consumption-based pricing is promoted to provide incentives for efficiency and water conservation, while avoiding an overall increase in economic burden.
   

Key issues

Supporting information for this recommendation is contained in Water Quantity and Water Use, Land Use and Inland Waters, and Groundwater. Installation of water metering will need to continue in priority catchments (such as those showing summertime stress) as part of water management plans.

Because the condition of coastal and estuarine environments is dependent on the quality and quantity of the freshwater resources they receive, there are linkages between water pricing and the health of Tasmania's coasts and estuaries (see Ecological Condition of Coastal, Estuarine and Marine Habitats).

A major priority over the coming five years is to progress with pricing to reflect the full costs of water provision. Water metering contributes to a strategic approach to the management of water resources through improved tracking of water use consumption at a range of scales (from an individual household to suburb or even Statewide assessments). Without metering, households cannot know what volumes of water they are using. Equally, water management authorities cannot determine consumption and system losses for a range of areas and users. Similarly, it is difficult for Statewide and national environmental assessments, such as through State of the Environment Reports, to determine trends in water use by different sectors.

An accurate analysis of water consumption trends in Tasmania is hindered by relatively poor information availability across various sectors. Water metering will assist in promoting better understanding of water consumption trends and support better planning for water infrastructure.

Water metering also provides the basis for consumption-based pricing systems that better reflect the real economic and environmental costs in providing water. As part of water management plans, metering and consumption-based pricing promotes water transferring and trading, and efficiency in water allocation.

Implementation of water metering and introduction of consumption-based pricing is both a responsibility under the COAG water reform agenda and a measure of progress towards sustainability in water resources. Providing appropriate price signals to water consumers can promote investment, efficiency and a reduction in consumption. These may include efficient irrigation technology on farms and water conservation measures by domestic consumers.

What has been achieved 1998-2003

Installation of water meters has occurred in the South Esk basin as part of water management plans.

Tasmania Together

Relevant Tasmania Together goals and standards for 'Inland Waters and Wetlands' are listed in the linked file. The Tasmania Together Progress Board reported on progress toward targets for benchmarks set (Tasmania Together Progress Board 2003). Indicators, targets and baseline data are available in the latest Progress Report June 2003. Further information, including progress report updates, is available from Tasmania Together.

Further and related recommendations

Related Issue Reports