Prices for water and wastewater services in Auckland will increase by 7 per cent from 1 July 2021

Watercare chief executive Jon Lamonte says the company will soon publish its latest Asset Management Plan detailing how it will invest an average of $2.5 million every day for the next 20 years.

“An incredible amount of work goes into providing top quality drinking water and treating the city’s wastewater so it can be safely returned to the environment.

“Our Asset Management Plan recognises that a higher level of investment is needed to support our growing city in a climate-resilient way.”

The price path for water and wastewater services, as well as infrastructure growth charges (IGCs), is aligned with the Asset Management Plan.

Up until now, Watercare’s annual price increases have been about 3 per cent. However, the impact Covid-19 has had on the Auckland Council group’s revenue means the company is not able to borrow as much as ideal.

“This creates a funding gap, leaving us with no option but to revise our pricing path to allow us to continue providing our essential services and building critical infrastructure,” Lamonte says.

“For most Auckland households, this year’s seven per cent increase equates to about an extra $1.50 a week.”

Watercare’s price path submitted for inclusion in the Auckland Council’s Long-Term Plan proposes another increase of 7 per cent on 1 July 2022, followed by annual price increases of 9.5 percent through to 2029, and then increases of 3.5 percent in 2030 and 2031.

IGCs will increase by 12 per cent from 1 July 2021, followed by proposed annual increases of 8 per cent through to 2027.

Lamonte says IGCs, as well as borrowings, are used to fund growth-related infrastructure to ensure existing customers are not overly subsidising new customers or future generations.

“Giving our customers a fair deal is important to us. This is why people who build new houses, and businesses that expand their operations, pay infrastructure growth charges. The money we collect from these charges, along with what we borrow, pays for projects needed to cater to our growing city so that our existing customers are not faced with excessive water and wastewater costs.”

NOTES 

• Water prices will increase from $1.594 to $1.706 (including GST) per 1000 litres for all customers.
• Fixed wastewater charges for domestic customers will rise by $16 to $247 per year and from $2.772 to $2.966 per 1000 litres of wastewater discharged (including GST).
• The infrastructure growth charge (IGC) for the metropolitan area will increase to $13,798 plus GST.

There are a number of options available for customers struggling to pay their water and wastewater bills:

• Watercare funds the Water Utility Consumer Assistance Trust, which supports customers suffering genuine hardship by writing off part, or all, of the amount owed.
• Customers can also talk to our customers services team about setting up flexible payment plans.
• Watercare also funds in-home water audits through the EcoMatters Environment Trust. Customers with high water bills receive tailored advice on how they can reduce water use in their home, and therefore reduce their water and wastewater bills.

While our Asset Management Plan (AMP) will be published on 1 July, we can share some of the highlights of the draft plan with you:

• ENSURING RELIABLE SERVICES: Subject to us receiving the necessary consents, we will replace our ageing Huia Water Treatment Plant with a new plant capable of producing up to 140 million litres a day.
• RESPONDING TO GROWTH: Subject to us receiving the necessary consents, will gradually expand our new Waikato A Water Treatment Plant until it can produce up to 150 million litres a day.
• IMPROVING OUR ENVIRONMENT: We will invest about $10.5 billion on our wastewater system and assets, which will improve the quality of the wastewater we discharge and reduce wet-weather overflows.

The investment laid out in our plan is about helping Auckland accommodate growth, repairing and building essential assets, and preparing for the far-reaching impacts of climate change. The full plan will be published on our website on 1 July.

The full plan will be published on our website on 1 July.

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