By BERNARD ORSMAN
Water bills in Auckland City are due to go up by an average of $50, meaning most households will pay about $750 a year in water and wastewater charges.
Metrowater, the Auckland City Council water subsidiary, plans to raise water prices by 4.85 per cent and wastewater charges by
8.47 per cent from August.
That will lift the cost of a shower by nearly 2 cents to 25.9c and the price of flushing the toilet from 3.3c to 3.56c.
On top of bigger water bills, the council is looking to increase household rates by 3.8 per cent this year. Last year, household rates went up 13.6 per cent.
Metrowater chief executive Graham Coxhead said $30 of the $50 average increase was due to higher charges by Watercare Services, greater Auckland's bulk water wholesaler.
Watercare is looking to increase water charges by 2 per cent and wastewater charges by a hefty 10 per cent, citing the need to pay for a $450 million upgrade of the Mangere treatment plant.
Metrowater has asked the council to let it drop its rate of return to 2.5 per cent to hold price increases under 10 per cent.
Mr Coxhead said the company would be able to maintain spending on drainage improvements over the next three years at this rate of return but conceded "we are working off a reduced base."
Metrowater cut capital spending by $4.9 million last year under orders from the council to reduce its rate of return from 6 per cent to 3.6 per cent.
Meanwhile, the council last night increased fees for each of the eight Metrowater board members from $17,500 to $20,000 and the payment to board chairman Michael Stiassny from $35,000 to $40,000.
