Wastewater Pricing Mechanism Review 2026
The Independent Competition and Regulatory Commission (the Commission) is reviewing how wastewater charges are structured for Icon Water customers in the ACT. This review ensures prices remain fair and aligned with the cost of providing essential services.
As part of this review, the Commission has released an Issues Paper to examine wastewater pricing options for all customers and considering whether the ACT should introduce dedicated liquid trade waste charges.
The Commission aims to finalise a pricing mechanism that:
- Reflects the true cost of wastewater and trade waste services
- Supports environmental and economic sustainability
- Distributes charges fairly across customer groups.
The review is revenue neutral for Icon Water. It focuses on how costs are shared, not on increasing total revenue.
Icon Water has been engaging with non-residential customers and the broader community to understand the practical impacts of potential changes. The feedback helped shape Icon Water’s supplementary submission to the Commission.
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What we heard from our customers
We recently undertook targeted engagement with non-residential customers to understand how proposed wastewater and liquid trade waste pricing changes could affect their businesses. Overall, customers were cautiously receptive of the proposed reform, particularly the move toward a more cost-reflective, user-pays approach.
Key insights from the engagement included:
- Willingness for change, with conditions
Customers recognise the limitations of the current fixture-based charging model, but their support for a user pays model depends on clear information, transparency and time to adapt. - Strong focus on bill impacts
Businesses want to understand how changes will affect their individual bills, not just high-level estimates, and expect early visibility before charges are introduced. - Recognition of fairness principles
Customers broadly agree that businesses creating higher impacts on the network should contribute more, provided the approach is fair and evidence-based. - Managing cumulative impacts is critical
The combined effect of wastewater and liquid trade waste charges is the primary concern, particularly for small and medium-sized businesses. - Preference for gradual, predictable transition
Customers emphasised the need for staged implementation, advance notice and guidance to support administrative changes necessary to enable reform - Need for transparency and flexibility
There is strong interest in clear methodologies for how charges are calculated, access to underlying data, and the ability to challenge assumptions where they don’t reflect business operations.
These insights have directly informed the supplementary submission to ICRC, including a staged rollout, shadow billing, and tailored customer support, to help businesses prepare for change.
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About the review and the changes being explored
This review is important, particularly for non-residential customers, because the current wastewater pricing structure no longer reflects how businesses actually use the wastewater network.
Currently:
- Households pay a fixed annual charge
- Businesses pay a fixed charge plus an amount based on the number of toilets and fixtures.
However, many businesses discharge wastewater in ways unrelated to the number of fixtures. Some also produce liquid trade waste, which places higher demands on the wastewater system. The ACT does not currently have a separate charge for this, meaning low-impact customers may be subsidising higher-impact dischargers.
The Commission is considering several pricing options, including maintaining the current structure or moving toward a more cost reflective, user pays model.
Icon Water is engaging with non-residential customers to understand how these potential changes may affect them. Customer insights, along with a detailed economic analysis, will directly inform our submission. Our goal is to support a pricing mechanism that is fair, socially responsible and practical.
Your feedback matters
Your feedback will support Icon Water’s submission to the Commission and reflect the needs and preferences of ACT non-residential customers, and any practical impacts of potential changes. For the supplementary submission, we collected feedback on:
- Preferred wastewater pricing structures
- The impacts of potential changes and any support needed from Icon Water
- How to best transition to a new pricing mechanism, with a focus on timing, implementation, and communication preferences.
Stay involved
1. Have a chat with our team
If you have questions about the process, you can get in touch with us at:
Email: LetsTalkWater.Wastewater@iconwater.com.au
Phone: (02) 6248 3111
2. Provide your details to receive updates
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FAQS
What are the changes being proposed under this review?
The Commission is considering several pricing options, including maintaining the current structure or moving toward a more cost reflective, user pays model. The review will also consider if Icon Water should introduce a liquid trade waste charge.
What is liquid trade waste?
Liquid trade waste is wastewater produced by business or industrial activities, rather than from homes. It can contain substances such as grease, oils, chemicals, detergents, food waste, cooling water or septic waste, and often requires specialised treatment before it can safely enter the sewerage system.
Why is the Commission undertaking the review?
The current wastewater pricing model for non-residential customers no longer reflects how businesses use the wastewater network, particularly those that produce liquid trade waste which has a higher impact on our systems and processes.
The review aims to create a fairer, more cost-reflective pricing mechanism.
Is Icon Water increasing revenue through this review?
No, the review is revenue neutral. Our focus is on how costs are shared, not on increasing total revenue.
Does Icon Water support the proposed changes?
Icon Water supports a pricing mechanism that is fair, socially responsible and practical. We are committed to environmental sustainability and to maintaining a strong, reliable wastewater system for Canberra.
Who decides the changes that will be implemented?
The Commission makes the final decision. Icon Water’s submission will help inform that decision, and your feedback will help shape our submission.
Will this result in changes to customer bills?
Depending on the outcome of the review and the decision on the pricing mechanism, non-residential customers could expect changes to their bills. This change may be an increase or a decrease.
When would these changes be implemented?
Any changes would be introduced from July 2028, with transitional arrangements to support customers through the shift.