Watercare Unveils $13.8 Billion Plan To Ensure Reliable Water Services

Auckland, [26 March 2025] – Today, Watercare unveiled its first 10-year business plan, delivered as it prepares to become financially independent of Auckland Council on 1 July 2025. The plan details how the company will invest $13.8 billion in more than 1000 projects while ensuring an affordable price path for customers.

Watercare chief executive Dave Chambers says: "Reliability is at the heart of our business plan. As the country’s largest utility, we have a third of New Zealanders depending on us to get safe drinking water to their taps, and to take it away again for treatment after it's been used.

“Over the next 10 years, we will spend an average of $3.8 million every day on our infrastructure programme. About half of that investment will be dedicated to replacing or upgrading existing assets so that Aucklanders continue to receive services they can count on; and the other half will be spent on expanding our networks to support population growth. Together, the investment will help to keep our precious environment healthy by reducing the frequency of wastewater overflows onto land and into waterways.”

Chambers says while the level of investment is significant, customers can expect a smoother price path because Watercare will become financially independent of Auckland Council on 1 July 2025.

“In July, the price people pay for water and wastewater services will increase by 7.2 per cent. This means households that use an average volume of water will pay about $7 more per month. In 2026 and 2027, the price rises are likely to be around 7.2 per cent and 5.5 per cent respectively.

“Early last year – ahead of the government and Auckland Council confirming a pathway for financial separation – we were facing a tough decision: do we prioritise the affordability or reliability of our services? With this plan, we will achieve both.”

By becoming financially independent of Auckland Council, Watercare can borrow more to fund its infrastructure investment programme. Chambers says this means the company can spread the cost of upgrading assets more evenly across their lifespans.

“Financial independence means we’re able to deliver intergenerational equity: the cost of delivering assets that last a long time – such as treatment plants – can be spread out across current and future populations through borrowings, making it a fairer distribution of costs over time.”

The business plan signals Watercare will deliver more than 1000 projects over the next 10 years, including two mega-programmes of work valued at over $1 billion.

“As our Central Interceptor project successfully winds down, two mega-programmes of work will get underway,” explains Chambers. “In west Auckland, we will replace the ageing Huia Water Treatment Plant with a plant that can produce up to 160 million litres a day to improve system resilience. As part of this project, we will replace two watermains that convey water from the dams to the plant and we will build two large storage reservoirs.

“Our other largest area of investment is the Māngere Wastewater Treatment Plant which serves three-quarters of Auckland’s population. We will upgrade equipment and improve processes to ensure we can continue to meet strict discharge requirements protecting the Manukau Harbour.”

Chambers is quick to note that all of Auckland will benefit from investment: “With dozens of treatment plants, hundreds of pump stations and thousands of kilometres of pipes, we must maintain assets from as far south as Waiuku to as far north as Wellsford. Over the next 10 years, we will be working in every community.”

Watercare’s infrastructure investment programme is prioritised to address service risks, with the safety and reliability of its water supply as the primary driver.

“While our level of investment over the next 10 years is significant – $3.8 million a day – we must carefully prioritise our projects to ensure our most critical needs are met, with the safety of our drinking water paramount.

“Late last year, we let people know there are parts of Auckland where our networks are approaching or at capacity – impacting the number of new properties that can connect.

While we will carry out work to unlock growth in many areas, we will not resolve everything within the next 10 years. For example, we have an extensive programme of work being delivered in Ōtara that runs from now until 2040.”

Following the Watercare Charter

Watercare is currently subject to interim economic regulation as the government implements its Local Water Done Well legislation. The Department of Internal Affairs – in collaboration with Auckland Council – has developed a Watercare Charter that sets out its requirements. The Commerce Commission is the Crown Monitor. Chambers explains how Watercare will uphold these requirements in its business plan.

“The Watercare Charter requires us to develop and implement a new pricing methodology by 2027 that rebalances revenue so that growth pays for growth. While we work on the new methodology, the Charter specifies the minimum increases in infrastructure growth charges.

“Infrastructure growth charges are paid when a property connects to our networks and helps fund projects to increase the capacity of our bulk infrastructure such as treatment plants. On 1 July, infrastructure growth charges will go up by a minimum of 15.5 per cent, in line with the requirements of the Charter.”

Chambers says the business plan has a strong focus on performance standards and measurement.

“Both Auckland Council, as our owner, and the Commerce Commission, as our regulator, have set strict standards to ensure we deliver a high level of service to our customers and manage our infrastructure effectively.

“People can feel confident that our water is safe to drink, our treated wastewater is safe to release into the environment, and that we’ll respond quickly to issues like pipe breaks and overflows.”

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