Press Release – Watercare Services

Preliminary research undertaken by Watercare Services Limited has indicated that the total cost of regional water and wastewater services in Auckland will be significantly lower as a result of efficiencies that can be achieved through integration under …

MEDIA RELEASE
For immediate release
28 April 2009

Integration of water services will lead to lower water and wastewater bills

Preliminary research undertaken by Watercare Services Limited has indicated that the total cost of regional water and wastewater services in Auckland will be significantly lower as a result of efficiencies that can be achieved through integration under Watercare.

Factors influencing the scale of cost savings are likely to come from the following areas: reduced duplication of services (from the integration of six non-competing water retailers); network optimisation; integrated planning; demand management; economies of scale in purchasing; and an end to dividends.

“We are in the very early stages of work in this area and will not be able to establish firm figures until legislation enables us to view all the information we will need, but the savings are expected to be significant. The total cost of regional water and wastewater services will fall,” said Watercare’s General Manager Finance, Gary Swift.

Watercare will consult with its owner, the new Auckland Council, before deciding which charging methodology will be applied to regional wastewater services. If wastewater charges are billed volumetrically (on a user-pays basis, linked to water consumption) they will no longer be charged as part of rates. No decision on the pricing methodology has yet been taken.

The Royal Commission into Auckland Governance concluded that integration of water services in Auckland will lead to lower water and wastewater bills and that Watercare is the “obvious choice” to be the single water company. [1] This finding was endorsed by the Cabinet on 6 April and reiterated by the Minister of Local Government, the Hon Rodney Hide, on 8 April. [2]

ENDS

[1] Report of the Royal Commission, paragraph 26.184
[2] http://www.scoop.co.nz/stories/PA0904/S00118.htm

Content Sourced from scoop.co.nz
Original url