Wellington Water Bills to Soar: $6831/Year by 2036
Wellington residents are bracing for substantial increases to their water bills over the next decade, with costs potentially reaching $6,831 annually, as the newly formed water entity, Tiaki Wai, attempts to address decades of underinvestment in aging infrastructure. The changes, set to begin July 1st, will notice households receive separate quarterly bills rather than having water costs included in their council rates.
The initial increase will be an average of 14.7 percent, adding approximately $310 to household bills this year, according to Tiaki Wai chairman Will Peet. Further increases are anticipated, potentially reaching 28 percent in 2027-2028, with costs more than doubling by 2036. Currently, residents across Wellington City, Porirua, Hutt City, and Upper Hutt pay an average of $2,100 annually for water through their council rates.
The scale of the increases varies by city. Porirua residents will see an average increase of $368 per year, although Lower Hutt residents will pay an extra $349, Upper Hutt residents $278, and Wellington residents $275. These figures reflect the current rating model used by the four councils, which Tiaki Wai will inherit for the first year before transitioning to a common pricing model.
Tiaki Wai is replacing Wellington Water and inheriting its assets – the responsibility for managing drinking water, wastewater, and stormwater services. Peet acknowledged the financial strain these increases will place on households, particularly given the current cost of living pressures. “We’re conscious that everyone’s been facing rising costs over the past few years, and that any increase is challenging for people,” he said. He emphasized the long-term neglect of infrastructure as the driving force behind the necessary price hikes. “It’s taken 30 years to get to this position, and it will take more than five minutes to fix.”
The organization will assume $9 billion in water assets and $1.7 billion in debt from the councils. Though, current revenue of approximately $385 million annually is insufficient to cover long-term costs. A strategy document released by Tiaki Wai highlights the poor condition of many critical assets, with three out of four wastewater treatment plants currently non-compliant and networks contributing to overflows, flooding, and pollution.
One immediate priority for Tiaki Wai is addressing the ongoing issues at the Moa Point Treatment Plant, which has been discharging raw sewage into the sea since a major failure in February. Peet declined to comment on repair costs or timelines, deferring questions to Wellington City Council. He also refrained from commenting on current suppliers operating the plants, including Veolia.
Tiaki Wai has been set compliance targets by regional councils and mana whenua partners, including a goal of receiving no abatement notices, fines, or prosecutions for non-compliant plants. Peet admitted that meeting these targets in the initial stages is unlikely, given the existing infrastructure challenges. “We won’t be meeting those in the initial stages, because Wellington Water is not meeting them,” he stated.
Peet assured residents that water services would not be disconnected for non-payment and that a hardship policy is in place. While the organization has a process for issuing reminder notices and contacting debt collecting agencies, Peet indicated that debt collection is not currently being considered.