Aucklanders' water bills could more than double over next decade, rising $1200

Friday, 8 January 2021

A $1.2 billion project will install an underground tunnel to expand the capacity of the sewage network.

Water bills may be set to rise across Auckland due to the financial impact of Covid-19 and the region’s drought.

Watercare’s proposal will mean the average household will pay an extra $70 per year for water as early as 2022.

That could be followed by annual 9.5 per cent price hikes until 2029.

The water company’s board has cited significant loss of revenue as the cause, with the ongoing drought piling on $209 million in additional costs.

Watercare is proposing higher water bills as it struggles with rising debt as a result of Covid-19 and the drought. (File photo)

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Watercare has approved an annual price hike of 7 per cent in 2021 and 2022, 9.5 per cent from 2023 to 2029, and 3.5 per cent until 2031 at a board meeting on December 23.

It also approved a 12 per cent increase in infrastructure growth charges from July 2021, followed by an 8 per cent price rise annually.

According to Watercare figures, the average annual water bill for a household will increase from $1069 in 2021 to $2261 in 2031 – a $1192 increase over a decade.

The proposal will be included in Auckland Council’s draft 2022–2031 Long-Term Plan, which will go to public consultation in late February.

Covid-19 and the region’s drought has influenced this policy direction, the board said.

Auckland Council has requested Watercare reduce its debt-to-revenue as a result of its forecast $1 billion revenue hit from Covid-19.

The drought led Watercare to invest $209 million in additional water sources, which led to more debt.

Watercare said it can only stay on top of debt by increasing customer charges.

The board's proposed water bill hike will raise $8.1 billion over the 10-year period from July 2021 to June 2031.

This will fund projects such the Central Intercepter, a $1.2 billion tunnel to reduce sewage overflows in the region.

However, many projects have been pushed back two to three years due to borrowing limitations.

These include stormwater improvements on the western isthmus, investment in detecting water leaks, and meeting growth projections for the northeast of Auckland.