“Our intent is to charge enough to deliver the improvements in essential water services that our communities expect, while not charging any more than is necessary.”
Tiaki Wai is already planning to meet Commerce Commission information disclosure requirements, as set out in the Local Government Water Services Act, the legislation that governs how Tiaki Wai is set up and operates.
“We acknowledge the important role of the Commerce Commission, and other regulatory agencies, in ensuring customers receive safe and efficient water services,” says Mr Peet.
“We hear the concerns about the indicative charges set out in the draft Water Services Strategy released on Wednesday 25 March and welcome the opportunity to discuss options with our shareholding councils and the Commerce Commission.
“Tiaki Wai begins operating with aging networks that require significant investment and high levels of starting debt, but with projected cash flows below what’s needed to meet long-term lending requirements. The task for Tiaki Wai is finding the right balance between investing in improvements, servicing debt inherited from councils, and the level and speed of increases in customer charges.
“The core systems Tiaki Wai is starting with are not fit for purpose and asset management maturity needs to be lifted. A technology investment programme is underway to address urgent system gaps, including asset management and finance systems. We look forward to building the organisational capability needed to meet regulatory requirements.”
“The Board is committed to working with shareholding councils and the Commerce Commission to get on to a stable financial foundation while managing the impact on customers.”