Water works bills tapped to climb

Aucklanders can expect to see their water and sewerage bills climb due to huge wastewater and stormwater clean-up projects.

Water industry leaders say although the average Auckland household's water and wastewater bills have stayed below the inflation rate for five years, this cannot last.

Releasing its latest annual performance review, the $500 million-a-year industry says it has refined checks on water retailers' prices by using three measures - their minimum or fixed charge and user charge.

The review concludes the average annual household bill for tap water, based on 200,000 litres consumption, was $258.45 last year.

Regionally, the standard household's combined water and wastewater charges have gone from $651 to $633 in five years.

North Shore City calculated that when compared with the consumers price index increases for those years, the charges really fell by 12.8 per cent.

But the city's water services manager, Geoff Mason, said prices increasing at less than inflation could not last.

The Auckland industry needed to maintain and renew the $8 billion of plant and network assets.

"We are under pressure for a host of reasons, including the threat of climate change, continuing population growth and urbanisation, and increasingly stringent environmental standards," said Mr Mason.

Municipal water retailers say Aucklanders pay between 0.118c to 0.210c a litre for the A grade tap product. A litre of bottled water costs 75c on special at the supermarket.

The review says bulk supply controls were agreed between regional wholesaler Watercare and local network operators.

This incorporated a CPI 3 per cent price path for the next three years.

Auckland City retailer Metrowater says comparisons with overseas utilities verify that its prices are internationally competitive.

It said moves to manage operational costs had allowed it to hold prices for the fourth year running.

"When inflation is taken into account and with the 10 per cent prompt payment discount, this is effectively a price reduction of 20 per cent since 2001," said Metrowater.

But the Auckland City Council draft city plan proposes to seek increased payments from Metrowater to help to pay for stormwater infrastructure works.

This would require Metrowater to increase charges to customers by 1 per cent from this year to 2014 and by 2.5 per cent from then until 2025.

Council finance chairman Vern Walsh says investment in the city's stormwater infrastructure was much needed to improve the water quality in harbours and streams, in addition to dealing with flooding and the impacts of growth. "It will mean that part of the general rates that currently goes into stormwater can be used on other priorities in the city."

Aucklanders pay for water based on what they use, with most wastewater services paid out of rates.

But this year North Shore and Waitakere cities propose moving towards a user-pays system for wastewater.

North Shore's draft plan suggests charging based on 75 per cent of a household's water use instead of the present uniform target rate.

City works and environment chairman Tony Barker said the city must spend $140 million over the next decade to improve stormwater systems and reduce the threat of flooding and water pollution.

Waitakere City Council's draft plan proposes to hold water rates for 2006-07 at 0.148c a litre (average daily household use is 585 litres) but is considering a move to a uniform annual charge for wastewater rather than levying wastewater against property values.


What they charge

Water consumption fees per litre
* Rodney 0.210 cents
* Waitakere 0.148 cents
* North Shore 0.129 cents
* United Water (Papakura) 0.128 cents (0.122c with rebate)
* Metrowater (Auckland City) 0.118 cents (0.109c with discount)
* (Manukau - no figure)

Household average annual wastewater charges
* Metrowater $417.65
* Manukau Water $288.00
* North Shore $396.48
* United Water $347.84
* Rodney $395.26
* Waitakere $359.91