Water retailers up $10 million
Water retailers up $10 million
Auckland’s bulk water and sewage services supplier, Watercare Services Ltd, has agreed to a $10 million price adjustment according to its council-owned governing body.
This will be achieved by a price reduction to its customers until June 30.
Watercare’s customers are retailer providers like Metrowater that, in turn, supply water and wastewater (sewage) services to residents.
Six local authorities collectively own Watercare and the Shareholders’ Representative Group (SRG) was established to represent their interests.
Auckland City Councillor Dr Bruce Hucker is chairperson of the Watercare SRG and today congratulated Watercare’s board and management for the improved efficiencies that have led to the adjustment.
“Tight management has led to a good trading result this year,” Dr Hucker said. “This is good news for shareholding councils and water retailers. I hope this will have a positive flow-on effect for residential customers.”
While the company is announcing a $10 million price adjustment, Dr Hucker says the end result could be even better for its customers. The final amount will be confirmed when retail providers receive the price adjustments at the end of the financial year (June 30 2004).
Watercare Board chairperson Graeme Hawkins has also announced an extension to Watercare’s pricing plan and a reduction in prices. The extension sees the price of bulk water and wastewater services for 2006 and 2007 set at inflation minus three per cent.
This means that from 1 July 2004 until 1 July 2007, bulk water and wastewater prices are likely to decrease if the inflation rate remains at current levels.
Ends
Note to editors: Water services provided by
Watercare are divided into drinking water (the water which
comes into homes and workplaces or is used for fighting
fires) and wastewater (also know as sewage - the ‘dirty’
water which leaves homes or workplaces). Watercare supplies
water and wastewater (sewage) services to retail providers
Metrowater, United Water, Manukau Water, Eco Water, North
Shore City and Rodney District Council. These providers, in
turn, supply residents. (North Shore City only receives
water services from Watercare). Watercare treats about
290,000 cubic metres of wastewater daily. The Shareholders
Representative Group (SRG) includes representatives of the
six local bodies that own Watercare (the city councils of
Auckland, Waitakere, North Shore and Manukau and the
district councils of Papakura and Rodney).