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Metrowater Price Increase Changes

Auckland City Council - City Scene

Metrowater's price increases of 7.5% for water and 20.8% for waste water were approved by Council on 29 June, but the company will not pass them on to customers until 1 October, when a new tariff structure is to be introduced.

Metrowater chief executive David Howell says the effect of the change is a substantial reduction in both water and waste water systems charges, with increases in the 1,000 litre user charges.

"Many Metrowater customers can expect to be better off under the new tariff structure. The much lower systems charges will soften the impact of price rises for most customers."

Council approved Metrowater's recommended increase in both water and waste water charges, because of external price rises which the company faces.

These include - price increases from Watercare Services Limited, approval of a major environmental improvement programme, "Cleaner Harbours" and a commitment to on-going repairs and maintenance to the city's 3,500 kilometre long pipe network.

Residential Price Comparison*

Current charges New tariff after September 1999 1 October, 1999
Fixed charge for water $63 $30
User charge per 1,000 litres 87 cents $1.10

Fixed charge for waste water $184.85 $30
User charge per 1,000 litres $1.11 $2.55

* Business comparisons are available from Metrowater

Note:- If the approved percentage increase had been applied "across the board", the systems charges from October 1 would have been $67.75 for water, and $223 for waste water. As the table above shows, the systems charges have been substantially reduced to $30 for each service.

"The new tariff structure will provide relief for everyday smaller water users, such as single people, the elderly and small businesses," says David Howell.

"Under the old tariff, the high systems charge penalised those customers who used comparatively small amounts of water."

Because Metrowater needs to balance its budget, any reduction in systems charges means the company must earn extra income from the price per 1,000 litres of water and waste water.

Customers who use less than the city-wide average of 220 thousand litres of water a year will save, while larger water users will pay more.

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