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.
The Commission has published their Draft Report. They invite feedback from stakeholders until Thursday, 15 October 2026, in the form of written submissions by email at icrc@act.gov.au or post
Independent Competition and Regulatory Commission
PO Box 158
Canberra City ACT 2601
Summary of changes from the Commission’s Draft Report
(Image source: Independent Competition and Regulatory Commission, Draft Report—Review of Sewerage Tariff and Liquid Trade Waste Charging, p. 11)
The Draft Report sets out proposed tariff reforms and how the new tariff framework should be designed and implemented, including:
Liquid trade waste reform
- 1 July 2028 — Introduce non-compliance charges to strengthen adherence to approval conditions.
- 1 July 2029 — Introduce fixed management charges aligned with approval categories.
- 2029–30 — Conduct a mid-way implementation checkpoint to assess customer impacts, system readiness and data quality.
- 1 July 2030 — Introduce pollutant-based charging for high-risk industrial customers.
Sewerage tariff reform
- 2029–30 — Undertake a pre-commencement checkpoint to confirm readiness for transition.
- 1 July 2030 — Implement the initial stage of sewerage tariff reform, introducing a fixed plus variable structure at nominal rates while retaining fixture charges.
- 2032 — Conduct a formal implementation review to assess customer impacts, billing system performance and tariff design refinements.
- 2033–38 regulatory period — Progress to the interim stage and then the end state structure which adopts meter-based fixed charges, with progressive rebalancing of fixed, variable and fixture components.
Previous updates
As part of this review, the Commission had released an Issues Paper in November 2025 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 - see full report here. The feedback helped shape Icon Water’s supplementary submission to the Commission.
About the review
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.
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.