Savings on water less than claimed

Watercare Services has given Aucklanders an indication of savings in water bills from July. Photo / Greg Bowker

Watercare Services has given Aucklanders an indication of savings in water bills from July - which are not as big as its public relations staff tried to spin yesterday.

Watercare chairman Ross Keenan intervened to give clearer information on water bills after staff of the council-controlled organisation pumped out material that gave the impression of bigger savings.

The material focused on a big fall in the price of water and downplayed a 4.5 per cent rise in wastewater charges, which makes up the bulk of the overall water bill in those areas where there is user-pays for wastewater.

Asked why Watercare had not told Aucklanders what the bottom line was for water bills, Mr Keenan said: "That is a very fair question ... We will certainly provide that ASAP."

A few hours later, Watercare gave the Herald combined tables of annualised water and wastewater charges, including savings of between 6.5 per cent and 43 per cent across the region for a family of four.

Mr Keenan said Watercare was delighted to confirm that from July, the price of water would fall to $1.30 a thousand litres, a saving of 62.9 per cent in the rural parts of Rodney and large falls in areas other than Manukau where the price is $1.31.

He also acknowledged that the wastewater tariff would increase by 4.5 per cent.

The tricky issue of settling a single regionwide wastewater tariff structure from July next year is still to be worked through.

Introducing the former Manukau City Council's policy of a fixed charge for wastewater was an election promise for Mayor Len Brown, even though it penalises low water users.

The mayor is likely to resolve the inequity for low water users - mainly the elderly - through a rebate.

Mr Keenan said the lower water prices came from efficiencies by Watercare since it took over water services from the former councils.

These included taking about $90 million of capital spending out of the previous councils' water budgets, reducing staff numbers by 200 and saving about $12 million by not having to pay rates to the Auckland Council in the new set-up.

Despite Watercare's explanations, suspicion lingers among some councillors and council officials about how the big drop in water prices came about and whether it is sustainable.

Last night, a senior council source said a close eye was being kept on the level of depreciation spending and accounting practices at Watercare, which are thought to be other reasons behind the price falls.