Water Supply Is A Postcode Business

What you pay for water depends on where in the country you live and customers in small towns generally pay more than those in larger urban areas.

Water New Zealand’s latest annual National Performance Review which compares drinking water, wastewater and stormwater services in 2021/22, has confirmed that there are big differences in the cost of water supply and wastewater services across the country.

Insights and sustainability advisor, Lesley Smith says that the highest water supply charges in Aotearoa New Zealand are more than eight times higher than the lowest charges.

“Some people are paying $1209 a year for water supply and at the other end, the lowest cost is $244 a year.”

She says the range for wastewater charges is nearly as large – from a low of $360 a year to a high of $1,108 a year.

“The charges are less variable across urban centres with the highest charge in a major centre $617 a year for water supply and $654 for wastewater.”

One of the reasons for the big difference is that small centres have a smaller customer base to spread charges across.

“Bigger centres can achieve greater economies of scale not available to smaller regions.

“This means that the biggest cost burden is falling on people who generally earn less. Urban areas have higher average incomes than smaller towns and communities.

“In the most expensive district, a worker on the minimum wage would be working for three weeks, or 122 hours, to cover their water and wastewater bill of more than $2,300 dollars.

Among the 33 regions participating in this year’s NPR, the median charge for drinking water supply across the country is $465 per household and $564 for wastewater services.

The National Performance Review has been undertaken by Water New Zealand since 2008. It provides an annual performance comparison of drinking water, wastewater and stormwater service provision in New Zealand based on voluntarily supplied information from water utilities.

This is the final review by Water New Zealand. From 2023 onwards reporting is required by regulation under Taumata Arowai through the Network Environmental Performance Measures.

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