Region faces $300m bill to install smart water meters
Saturday, 14 October 2023
Wellington could be facing a $300 million bill, if calls to install smart water meters at residential properties across the region are heeded.
The debate over meters is occurring against a backdrop, where the equivalent of 30 Olympic-sized swimming pools of water is being lost to leaks every day.
Installation is estimated to cost between $1500 and $2000 each, with Wellington Water boss Tonia Haskell emphasising that was very much “an initial high-level estimate” and the cost was not set in concrete.
With 151,000 households across the region, and using the upper figure, that equates to roughly $300m.
When meters were last looked at seriously in 2020, installation was estimated to be $144m.
Wellington Water is pushing for meters as a first step in dealing with Wellington’s current water crisis, which has experts warning that in a dry summer, the region could run out of water.
Haskell has been telling councils that a three-step approach is needed to deal with the crisis – smart meters, increased water storage and fixing the leaks. Meters would provide more information about where leaks are occurring and reduce household use.
Getting support from councils and installing meters, however, is going to be a challenge.
Wellington mayor Tory Whanau is non committal, noting she is concerned about the impact on low-income families and renters.
Porirua mayor Anita Baker is a staunch supporter of meters, saying her council would go it alone if necessary. However, ratepayers were “tapped out” and cost was an issue that could not be ignored, she said.
Upper Hutt mayor Wayne Guppy, an outspoken critic of Wellington Water, is sceptical about the cost and impact of meters.
He believed meters would be used to generate income and his preference was for Wellington Water to concentrate on fixing leaks.
Greater Wellington Regional Council chairman Daran Ponter said his council believed “we can’t build our way out of this crisis” and meters must be the first step in reducing water use.
Without meters, there was no point in spending hundreds of millions building a new dam, he said.
Haskell said although the case for meters was strong, it would be at least two years before installation could begin. A business case is being prepared and that should provide more details by June next year.
Councils would have to include metering in their long term plan and it would take up to a year to plan the work required.
Hutt City mayor Campbell Barry, who chairs the regional Water Committee, said the vast majority of attendees at the regional water summit agreed that “urgent action” is needed to face the challenges with the water network.
Although he had previously expressed doubts about the fairness of meters, he now believes the region has no choice.
“The question is can we afford not to do it given we are staring down the barrel of water shortages? We have to act now. Our residents will not thank us if we kick the can down the road.”
Barry said it was “important to remember” that meters were only part of a bigger package needed to fix the water crisis.
The outcome of the election could also influence whether meters are installed. The new entity being set up under the reform of three waters would be responsible for paying for and installing meters.
If the reforms do not proceed, there could be a question mark over proceeding with meter plans.
Haskell described Wellington as an “outlier”, noting many other parts of New Zealand already had meters, which were widely accepted as the best way to get people to value water.
People were already paying for water in their council rates, she said, and metering was a more transparent way of charging.
Mayor Janet Holborow recently noted that meters had been a huge success, helping to identify leaks. High water users have reduced their consumption by 70%.