Investing in our water systems

From City Scene, published on 29 March, 2009.

Work to keep our waterways and beaches clean and safe is increasing, for example the work on the Hobson pipeline.

By 2010, the harbour and eastern beaches will benefit from reduced wastewater overflows as the new $120 million Hobson pipeline comes into operation.

This significant capital expenditure programme is an area that will potentially impact on next year's water prices.

Other issues include an 8 per cent drop in water consumption so far this year compared to the same period last year, largely by the commercial sector.

This has led to a decrease in Metrowater's revenue. Also, increases in wholesale water prices as projected by Watercare over the last three years will have an impact.

Councillor Douglas Armstrong, chairperson of the Finance and Strategy Committee, said the council and Metrowater were taking steps to ensure water prices remained affordable.

"Auckland City Council have ended the annual charitable payments made by Metrowater to the council, three years earlier than planned. Charitable payments will not be a factor in Metrowater's pricing after 1 July 2009," says Mr Armstrong.

"Other steps to keep water prices as low as possible include our guarantee of Watercare's debt, and ensuring maximum savings and efficiencies from Metrowater's operations."

Metrowater will set their water prices after the completion of their business planning. Any increases are likely to come into effect on 1 July 2009, and will be announced by the company at least one month prior to that.