MEDIA RELEASE

Don’t Risk Collection Costs On Your Water Bill

Manukau City (6 March, 2007) – Manukau City property owners are urged to seek the help of budget advisory services if they are having trouble paying their water or wastewater bills, rather than risk incurring interest charges or other collection costs .

“We are not set up to make a profit and most of our customers only pay us after getting services for three months, so when people don't pay it adds to the costs of operating our business,” noted Manukau Water Limited chief executive Raveen Jaduram.

“If we were to allow this to occur then we would eventually have to recover this cost from those customers who are actually paying, and that isn’t fair. Therefore we will look to recover collection costs from people who try to avoid payment,” said Mr Jaduram.

Mr Jaduram said anyone having trouble paying their water or wastewater bill should talk with Manukau Water rather than risk it falling overdue.

“What we don’t want is people ignoring their bills,” Mr Jaduram said.

Mr Jaduram said there are a number of budget advisory services operating in the Manukau District and 5 Citizens Advice bureaux which can also assist with budgetary advice.

He noted Manukau Water Limited reserves the right to impose water restrictions on any person who does not pay their bill and now has process in place to enforce this. When water is restricted, customers receive a reduced flow of water to their house. They will still be able to maintain sanitary conditions; however, there will be very limited water for undertaking usual household activities.

The minimum public health requirement is around 50 litres per person a day. To put that in perspective, flushing a toilet once requires about 13 litres of water. The average person uses about 190 litres of water a day at home.

“Water restrictions are a last resort, but it is something we can do,” Mr Jaduram said.

Because restricting water is a time-consuming operation, a restriction fee will be charged on any properties that are restricted.

“Of course, the easiest way for customers to avoid the fee is to pay their water bills and that is what the vast majority of our customers do,” Mr Jaduram said

The percentage of customers likely to face restrictions is extremely low.

“I would like to think it will be close to zero because the vast majority of our customers recognise that this is a service we all have to contribute to,” he said.

ENDS

www.manukauwater.co.nz

Questions and Answers:

What is a water restriction?

When water is restricted, customers receive a reduced flow of water to their house. They will still be able to maintain sanitary conditions; however, there will be very limited water for undertaking usual household activities.

How much water will a customer get if they are restricted?

The minimum public health requirement is around 50 litres per person a day. To put that in perspective, flushing a toilet once requires about 13 litres of water. The average person usually uses about 190 litres of water a day at home.

How does Manukau Water Limited have the right to restrict water supply?

By not paying their bill, a customer has broken our conditions of supply and therefore we can restrict supply. The restrictions occur after they have received two reminder letters and a hand- delivered notice stating that restrictions will be applied.

Does the law allow Manukau Water Limited to restrict water?

In July 2004 an amendment to the Local Government Act allowed the restriction of water supplies as described in the following extracts from Section 193 of the Local Government Act 2002:

“1) The water supply to a person's land or building may be restricted by a local government organisation in any manner it thinks fit if the person fails to comply with any bylaw of the local government organisation that relates to water, water pipes, water-works, water races, or water supply to his or her land or building ”

Under this legislation non-payment of our bill constitutes a failure to comply and provides Manukau Water Limited with the ability to restrict water supplies.

Do other water companies impose restrictions?

Any water company has the right to impose restrictions if it sees fit and a number of water suppliers in New Zealand have imposed restriction on people who have not paid their bills.

Isn’t a supply of water an essential service that is the right of everybody?

The New Zealand Public Health Act of 2002 requires water companies like Manukau Water to allow people to have enough water to maintain minimum sanitary conditions. But that is only about 50 litres per person a day and the average person usually uses about 190 litres of water a day at home.

Do people have to pay a fee when their supply is restricted?

Yes. Manukau Water Limited does not make a profit but has to recover the cost of doing business. Imposing water restrictions is a time-consuming operation and we need to recover that cost. The easiest way for customers to avoid the fee is to pay their water bills.

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