Watercare has warned Aucklanders of a possible increase in water bills by up to 25.8 per cent from July, adding to the financial strain on residents already facing a cost of living crisis and recession, The New Zealand Herald reported.
The proposed rise would take the average household's water bill from $1340 to $1688, in addition to a potential 7.5 per cent rate hike by the council, increasing the average rates bill from $3560 to $3827.
The announcement was made in Watercare's "Tapped In" autumn newsletter, citing the need to adjust prices to manage their business within Auckland Council's borrowing limit.
The uncertainty arises from the government's decision to replace Labour's Three Waters reforms with National's Local Water Done Well plan, which leaves Watercare's debt on the council's books. This move limits Watercare's ability to borrow more to fund its $13.9 billion capital investment programme over the next decade.
Mayor Wayne Brown and Local Government Minister Simeon Brown are working on options to remove Watercare's debt from the council's balance sheet to address this issue. They are exploring solutions to avoid significant price hikes, which may include cutting or deferring funding for planned capital works.
Watercare board chairwoman Margaret Devlin acknowledged the concern over the potential price rise but indicated that the board may proceed with the hike if a solution is not found. She reassured customers that the central and local governments are working together to achieve a financially sustainable water model.
The possible water price increase comes as Auckland Council grapples with its finances, leading to service cuts, rate hikes, and asset sales. Mayor Brown is advocating for changes such as returning GST charged on rates to local authorities and paying rates on Government-owned buildings, which are currently exempt.
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