Auckland residents are set to feel the impact of a confirmed 9.5% increase in water and wastewater service prices from July 1st, 2023.

The increase follows the price path approved by the board of directors in December 2020 and included in Auckland Council’s Long-Term Plan, which was formally adopted in June 2021 after public consultation.

Dave Chambers, the Chief Executive of Auckland’s water and wastewater service provider, acknowledged the challenges faced by the company in recent times.

These included high rates of inflation and extreme weather events, such as droughts and floods.

Chambers stated that the company is working hard to keep price increases as low as possible, given the financial strain many households are experiencing.

From July 1st, 2023, water and wastewater service charges will rise by 9.5%, while infrastructure growth charges will increase by 8%.

This means that the price of 1000 litres of water will increase from $1.825 to $1.998, and the price of 1000 litres of wastewater will increase from $3.174 to $3.476.

The fixed wastewater charge will also rise, from $264 a year to $289.

The average household's weekly water use will see an increase of around $2.20.

To support customers struggling to pay their bills, the company is offering flexible payment plans and referrals to the Water Utility Consumer Assistance Trust, which provides assistance to those experiencing genuine hardship.

Chambers also noted that the company has focused on reducing controllable costs, such as reducing its headcount through attrition.

As a result, the increase could have been as high as 10.7%, but the company has managed to keep it to 9.5%.

However, the company has identified a forecast capital expenditure increase of $3.6 billion over the next decade, taking its forecast capital expenditure to over $13 billion.

To fund this, the company will have to increase its borrowing.

A concrete pour is carried out at our Redoubt Road reservoir.

Over $1 billion will be spent on infrastructure projects in the next financial year, including the completion of a new 45-million-litre water storage reservoir at Redoubt Road, which will improve water supply resilience, and the continuation of the tunnelling of the Central Interceptor wastewater pipe between central Auckland and the Māngere Wastewater Treatment Plant.

The confirmed increase in water and wastewater service prices will undoubtedly impact Auckland residents' budgets and financial planning.

Nevertheless, the company's commitment to keeping the increase as low as possible and its willingness to work with customers facing financial hardship will help ease the burden for some.