Projected water services charges whittled back

Tiaki Wai water services charges for the 2026/27 year will be slightly lower than initially proposed, and future increases will also be less steep. 

Tiaki Wai Board Chair Will Peet briefed the Partners’ Committee today that, while there is still work to do to confirm the numbers, the average increase in 2026/27 is now expected to be around 12.8 % (on average across all four cities) rather than the 14.7 % initially signalled.

The expected increase forecast for the 2027/28 year is significantly lower, and projected charges in a decade will be less than indicated in the draft Water Services Strategy.

“The proposed charges for the coming year (2026/27) are on average about $5 a week more than people have been paying for water services through their rates. I know many are doing it tough and this increase will still be challenging for people facing cost-of-living pressures on all sides” says Mr Peet.  

“But further reductions would delay us getting on with the job of fixing issues arising from decades of underinvestment.”

All figures will be confirmed at the next Tiaki Wai Board meeting and released as part of the final Water Services Strategy, likely on Tuesday 16 June.

Mr Peet says the reduced charges are in part due to extending the timeframe for the capital investment programme, meaning it may take longer to reduce the frequency of leaks, pipe failures, flooding and wastewater overflows.

“Another important factor is shareholding councils agreeing to provide an essential backstop of equity that can be called on if there is a significant unexpected event.  This agreement reduces the need for Tiaki Wai to rapidly build financial headroom, providing room for less steep increases” says Mr Peet. 

“As we ask people to pay water services charges, it is critical that we deliver value for money. We know we have to be able to demonstrate to our customers, partners and stakeholders that we are responsible financial and asset managers.”

Background:

In the current financial year (2025/26) the average residential water charges paid through rates across the four cities is $2,100.

The provisional charges presented to the Partners’ Committee for 2026/27 is an average across the four cities of $2,377. This is an increase of 12.8 % or about $5 a week.

The exact amount will vary from city to city and property to property, in the same way rates vary.

The provisional charges presented to the Partners’ Committee are subject to final modelling and there may be some minor variations as a result.

The confirmed charges are expected to be published on Tuesday 16 June.