Metrowater announces today that in order to maintain essential investment in water and wastewater services it is necessary to increase its charges for water and wastewater services.  From 1 July water and wastewater charges will increase by 5.9%.  This increase will add approximately $13 to a typical household’s quarterly bill.

Metrowater CEO Jim Bentley says “The price increase is driven by the increase in wholesale water and wastewater charges which are necessary for the planning, building, financing and operation of infrastructure to keep our beaches clean and safe; rising depreciation and interest costs due to an increase in Metrowater’s own capital investment; and the significant reduction in the volume of water sold in the current year, which is down 5% on last year.  Because many of our costs are fixed a reduction in sales volumes results in a necessary increase in the price per cubic metre.

“Also, to bring us in line with other providers in the Auckland region ahead of the transition to the new Auckland Council, the funding required to provide fire fighting capacity will be provided by Metrowater, rather than by Auckland City Council as it has been in the past.”

Mr Bentley added that in order to keep the increase as low as possible Metrowater has again managed its own costs well this year (these have increased by less than 1% in the last 2 years); and to ensure costs remain under control there will be no salary increases for Metrowater employees this year.

In the 10 years to 2006 Metrowater and Auckland City Council programmes reduced the volume of polluted water entering the environment from our networks by 50%, and remain on target for a further 35% reduction in the period 2006 to 2012.

Mr Bentley emphasises, “For Metrowater to reduce its costs and investment programmes further would compromise important areas for improvement such as in reducing wastewater pollution and water leakage or inhibit the level of planning for future water and wastewater needs, building up infrastructure problems for the future.

“In the last 2 years Metrowater has reduced the volume of unaccounted for water (largely leakage from the networks) by more than 1.2 billion litres per year. This work needs to continue otherwise the good achievements of recent times will have been wasted.”

Ends

For more information please contact:

Wendy Geus

Communications Advisor

Metrowater

Ph: 09 624 4771

Mob: 021 819 820