Whakatāne District Council Opens Discussion on Fairer Water Charging

Whakatāne District Council has started a conversation about making water charges “fairer” and “clearer” for the district; however, decisions are yet to be made.

At yesterday’s Council briefing, elected members heard how water charges work today and what the future may look like.

Water services, or ‘three waters’, include drinking water, storm water and wastewater: the systems that supply water to homes and businesses, carry rainwater, and manage wastewater from toilets, kitchens, and bathrooms.

Currently, different parts of the district pay different amounts for similar water services because of how services and infrastructure have developed over time, and how charges are structured.

Transition Director, Three Waters, Nic Johansson, said there is an opportunity to explore a more consistent approach.

“This is about looking at how we make things fairer across the district,” he said.

“At the moment, people receiving a similar level of service can be paying different amounts. Harmonisation is about exploring a more consistent, district-wide approach, so people are paying more similar charges for similar services.”

Council Chief Financial Officer, Paul Davidson, said the conversation is also about transparency.

“People want to understand what they’re paying for and feel confident it’s fair.”

At present, drinking water is mostly charged based on the quantity used, with 85% of properties on usage meters, while the rest are charged based on average use.

Rates are generally used for stormwater and wastewater charges.

Council said at this stage there is no intention to change this charging mechanism, although the harmonisation proposal will look at creating a fairer approach across the Whakatāne District.

This review work is happening in line with the government’s Local Water Done Well reforms.

Council said the reforms require it to set up an internal business unit for drinking water, stormwater and wastewater services, and investigate the formation of a Multi-Council-Controlled Organisation in the future.

“As part of that work, water charges will be clearly separated from general rates to improve transparency.”

Davidson said Council understands water charging can feel complicated.

“One of the things we’re working on is making it more transparent, so people can clearly see what they’re paying for and why,” he said.

Water meters are a key focus for Council in building a fairer system for the future.

Council said while 85% of properties are metered and charged based on actual use, 7% have a meter but are charged an average water usage rate, and the remainder are not yet metered and are also charged an average water usage rate.

Johansson said meters give households more visibility and control.

“If you can see what you’re using, you naturally start to think about how much water you need and where you might be able to reduce it,” he said.

Meters also allow households to identify possible issues in their water supply and usage, such as leaks, helping ensure people pay their fair share.

Households without meters pay based on the average usage, leading to some paying for more water than they use, and others paying less.

“Metering gives people an option that some don’t currently have,” Johansson said.

“If you use less water, you have the ability to pay less.”

Council said the briefing was an early step to open up the discussion, with no decisions made or immediate changes planned.

“Further work is required and consideration of what would be needed to support a fair system across the Whakatāne District.”

It said metering across the district would likely be needed to support the development of a more harmonised water-charging system.

“This is about starting the conversation,” Davidson said.

“We’re taking the time to explore the options carefully before anything is decided, and to have that conversation with the community,” he said.

Council said a future report would return to elected members once more details had been worked through.