Tiaki Wai opens the books on challenges and costs of fixing water services

Tiaki Wai is releasing its first Water Services Strategy which lays out the sobering challenges facing the delivery of essential services across Lower Hutt, Porirua, Upper Hutt and Wellington cities.

The draft strategy is available for people to read and provide feedback on haveyoursay.tiakiwai.co.nz 

Tiaki Wai Board Chair Will Peet says it will take time and money to get ahead of the challenges and deliver the safe, reliable and sustainable services people expect. 

“We will get cracking from 1 July 2026 but it will take many years to catch up on decades of underinvestment.

“It is not good timing to be talking about increases in water services charges when people are struggling with rising fuel prices.  We are conscious that everyone has been facing rising costs on all sides and any increase is challenging.  But we have to develop a plan to tackle the big water services challenges and people will see the significant increase in investment set out in this plan over the next decade.  This will see us address the decline and begin improvements.  

“We are inheriting assets with long-standing issues that require sustained investment, and we are taking on significant debt from councils. We have to strengthen our financial position so we can operate with sufficient headroom to manage unforeseen events and meet our obligations. This is something we are working on collaboratively with our shareholding councils.

“Property owners will have to pay more in water services charges than they have been paying through rates. 

For an average household, water services charges in 2026/27 will increase by about 14.7%.  The current average residential water charges paid through rates across the four cities is $2100 and this will increase by around $310 (about $6 a week).

This is broadly in line with indications in the Water Services Delivery Plan published by councils in October 2025.

The exact amount will vary from city to city and property to property, in the same way rates vary. Over time, Tiaki Wai will transition toward a common pricing model, also known as price harmonisation.

Will Peet says there has to be further increases in future years to get Tiaki Wai onto a stable financial foundation. 

“We are signalling a big jump in 2027/28, of over 28%, but this is not confirmed as there is substantial further work to do to refine our plans.  

“Work is underway on further developing the longer-term 2027-2037 strategy. We will seek feedback on this in the first part of 2027. 

“We have a policy to support customers who are temporarily unable to meet their water services charges. We guarantee that no one will have the water turned off just because they are struggling to pay the bill.

“We have to balance the urgent need to invest more in maintenance and upgrades with the costs to customers, while also being responsible financial managers and meeting legal requirements.

“The Board remains confident that we can tackle the challenges. We have new responsibilities, functions and powers, set out in legislation.  Importantly, Tiaki Wai will own the assets and be able to make decisions about when and where to invest in water services. 

“We have new leadership from our Board and Chief Executive Michael Brewster. New roles in what will be the Tiaki Wai senior leadership team are currently being recruited.

“Councils last year made a strategic decision that change was needed to how water services were funded and delivered.

“Tiaki Wai is that change.  We won’t fix everything overnight, but we are starting a new chapter. It will be challenging for everyone, including the people paying water services charges, but we can deliver the improved services our communities are looking for,” says Mr Peet.