Savings a drop in bucket

EXPECT minimal savings when a lower standard water charge is introduced next year.

Watercare Services will charge $1.30 including 15 percent GST for every 1000 litres of water it supplies to city areas under the new Auckland Council from July 1.

The biggest savings will go to Orewa and Whangaparaoa residents who are now paying $2.33 but Manukau residents will only get a 1 cent drop from $1.31.

Average city households in other parts of the region using 600 litres of water a day can expect savings of between $48 to $225 a year but there'll be "little change" for Manukau.

Watercare chairman Graeme Hawkins says the lower metropolitan water tariff, which does not include wastewater, is an "exciting announcement for all the people of Auckland".

It comes as Watercare takes over the region's water and wastewater operations from November 1, after 18 years as a bulk supplier.

"An integrated water supply company was expected to deliver savings and we have," he says.

Setting wastewater prices with the Auckland Council will take some time because of the "diverse charging regimes" already in place, Mr Hawkins says.

Waitakere, North Shore, Rodney and Franklin include wastewater billing in their land rates whereas Metrowater charges by volume used.

Residential customers in Manukau pay a fixed annual charge but commercial and industrial users pay for their water by volume.

Those charging systems will remain in place until July 2012 while Watercare agrees on a wastewater pricing strategy with the Auckland Council.

"We are always mindful that that our guiding legislation determines that we are a low-cost provider and cannot return dividends or surpluses to our shareholder," Mr Hawkins says.

"Watercare will increase its asset base significantly and a robust assessment is required before a wastewater charge can be calculated."

Manukau mayor Len Brown says the forecast drop in water charges to Manukau levels is an endorsement of the city's pricing system.

"My council delivers the lowest average water and wastewater charges across the region."

Strong leadership will be needed to keep water costs low for families, he says.

- © Fairfax NZ News