From 1 July an average Auckland household will pay $7 more a month for its water. Photo: 123rf
Aucklanders' water bills are set to increase as Watercare prepares to become financially independent and spend billions of dollars improving the city's water services.
From 1 July 2025, the price an average Auckland household pays for water and wastewater services would go up 7.2 percent or $7 a month.
But that is lower than the 25.8 percent price hike Auckland Council had proposed for water rates.
Some Aucklanders RNZ spoke to in the CBD felt their water bills were already too high, but most were willing to pay more if it meant better service.
"In New Zealand, we don't spend enough on infrastructure, Paul Kennedy said. "It's a long time to go without water when you run out."
"Our rates are very high now. Day by day we are struggling. If they gave good service we would maybe want to pay more," Renu Davi said.
Fay Roberts said her water bill was a bit high for her liking.
She said it would be good to get the infrastructure right, but her household had not experienced any issues.
Next year, Watercare said the cost of water would go up by another 7.2 percent, followed by another 5.5 percent in 2027.
On 1 July Watercare would become financially independent from Auckland Council, but remain a council-controlled organisation.
This would allow the utility to take on debt to spend $13.8 billion over the next decade - that is $3.8 million a day - repairing and expanding infrastructure for a growing population.
Watercare's Lower Huia Dam, Waitakere Ranges. Photo:
Watercare chief executive Dave Chambers said borrowing from banks meant the service could take longer-term loans, reducing the costs it charged residents.
"When we build things they're there for 50 to 100 years and instead of what we have been doing paying that off relatively quickly, Aucklanders who aren't here yet will also be starting to pay for that infrastructure that they'll enjoy."
Watercare had caps on the revenue it could collect from ratepayers, which Dave Chambers said would result in estimated savings of $800 million over the next three years.
There were some housing developments in Auckland where waste was being trucked away because there was no permanent sewerage system, or treatment plants were at capacity.
Chambers said these areas were a priority for Watercare.
"That was the dilemma that we faced, how much longer do we wait to do the upgrades that are desperately needed across Auckland.
"I don't make any apologies that when the pipes are full they're full. We need to do the upgrades to provide more capacity but if we just continue to connect more people the pipes will overflow into the harbours, streams, and waterways."
Watercare planned to start 1000 projects in the next 10 years, including replacing a treatment plant in Huia and expanding the Māngere wastewater treatment plant.
Auckland councillor and 2025 mayoral candidate Kerrin Leoni agreed it was not sustainable for the council to continue to finance Watercare.
"I absolutely agree with the debt separation. Auckland Council can have more debt for ourselves and Watercare can focus on sourcing the debt they require to address the infrastructure issues across the city."
She said she was concerned about the city's water use as the city's population grew.
"Over this period where it has been dry, a number of councillors have been enforcing four-minute showers.
"As we reach 700,000 residents by 2050 that's a lot of extra people and a huge strain on our infrastructure.
"This is why changing people's behaviours around water use and also investing in infrastructure for the future of our city is really necessary."
Watercare owed $4.2b to the council in outstanding debt that needs to be paid back in the next five years.
Auckland Mayor Wayne Brown was unavailable for comment.
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