Mounting confusion over looming Wellington region water bills

Some ratepayers in the Wellington region are anxious about the size of their rates and future water charges, as confusion mounts over new bills heading their way soon.

By Ellen O'Dwyer and Krystal Gibbens for RNZ

New water entity Tiaki Wai will take over management of Wellington's water services from July 1, inheriting the five councils' assets.

In early March, Tiaki Wai projected water bills would average $2400 per year for Wellington regions' residents, an average 14% increase — or an extra $310 per year. On average, charges could reach $6831 per year by June 2035.

Mayors have expressed concern about the price increases and the Commerce Commission is currently scrutinising its model.

Previously incorporated in residents' council rates, charges for water services will be separated out into different bills from July.

Korokoro resident Shirley-Anne Thornbury said she felt unhappy, and uncertain about future water bills and council rates.

Thornbury said she paid about $6000 per year for her rates and she understood she could pay $2400 per year in water charges, based on her property value.

She wanted her Lower Hutt City Council rates bill to decrease by the same amount as her new water bill.

"If they're going to separate a water charge elsewhere, I would like the remaining part of my rates to be less that amount."

Thornbury hadn't received information from Hutt City Council that rates would decrease significantly.

"I am definitely feeling uncertain," she said. "I'm not an unlimited fund — I need to be able to budget what I'm spending."

Thornbury also questioned why her water charges were based on property valuation, rather than water usage.

Judgeford resident Marie Hawkins agreed, saying it wasn't fair that larger households paid the same amount in water charges as a single resident or tenant.

"People are just crying out, because they are not going to be able to afford to pay these water rates on top of their [council] rates already."

Hawkins, who owned a rental property with one tenant in Pāuatahanui, said she expected higher water charges passed on to tenants with higher rents.

Karori ratepayer Guy Nunns said he had started holding community meetings, campaigning against the costs. One had been held in Karori and he was planning others elsewhere in the region.

He said paying thousands per year in rates, as well as water charges, risked making home ownership "impossible" for some.

"I have had any number of people contacting me, saying they are very fearful about losing their homes," he said. "The idea they've got to come up with all this money yearly is frightening to them."

Nunns claimed water charges could increase to $5000 per year in three years. That's not correct, according to Tiaki Wai's indicative price list, which shows estimated charges could be on average $3508 per year in 2028/29 and $3983 per year by 2029/30.

Nunns also raised questions about the cost of implementing water meters, which Tiaki Wai had indicated would cost between $500-590 million and take between 5-7 years.

"This is just not going the right way for anyone."

When asked whether Nunns had contacted Tiaki Wai or invited them to any meetings to explain the charges, he said he hadn't, but while he didn't mind if they attended, the organisation had "its own forum".

Nunns was an Independent Together candidate at the previous election, which came under controversy for alleged tactics employed during the campaign.

Nunns said he was focused on raising awareness about high water bills.

Hutt city councillor for the Harbour Ward Tui Lewis said rates bills wouldn't reduce dollar-for-dollar by people's water bills, because the council's cost pressures and funding responsibilities hadn't disappeared.

"The benefit of removing water costs has been applied to our rates this year and they have dropped. They didn't drop significantly, because the income linked to water services has also been removed - it's not a net saving in councils' budgets.

"Sadly, it didn't create spare money and everything else council does is getting more expensive, even without water."

Lewis said Lower Hutt residents could work out proposed rates through a calculator on the council's website.

A Hutt City Council spokesperson said councillors would vote on the 2026/27 rates on June 30 and residents could expect their bills in early July.

Wellington city councillor, Diane Calvert, who represents the Wharangi/Onslow-Western Ward, said residents will see a reduction in rates bills by about a third, due to separating water charges out, but then there's still a proposed increase on the council's base rate.

"The increases are in increased charges on the council, depreciation, interest rates, and general inflation."

The council had been consulting on a 7.4% rates increase, but were now looking at a 5.8% increase instead, according to Deputy Mayor Ben McNulty who shared a message on his social media on Saturday.

Calvert said the council was starting to reduce spending in order to keep rates down.

"We're very conscious about rates affordability and, with this council, even more so."

Calvert said Tiaki Wai "absolutely" needed to rethink water meter costs and she was pleased the Commerce Commission was looking at Tiaki Wai's model.

A Wellington city council spokesperson said the council would approve 2026/27 rates on June 25 and ratepayers could expect bills in early August.

Porirua City Council chief financial officer Ian Dennis said the council was still deciding on rates for the 2026/27 financial year, but residents should see a reduction of about 26% with water charges separated out.

Rates bills will be sent to Porirua households in late July.

An Upper Hutt City Council spokesperson said the council would approve 2026/27 rates on June 30 and ratepayers could expect their new rates bill between mid July-early August.

Indicative figures were available on the council's website, the spokesperson said.

Tiaki Wai establishment director Dougal List said homeowners would receive their first water bills from late July-early August.

He was aware of alarm in the community over price affordability.

List said work was going on, including with the five shareholding councils, to look again at spending plans, operating costs and how to "carefully manage" price increases over time.

List said Tiaki Wai was still working through what cost increases could be and a final strategy would be released before the end of June.

"The reality is, though, that the prices will need to increase for water," he said. "They are below what it actually costs to manage and look after the water network, and respond to all the challenges we face."

List said about 40% of rates bills had been made up of water costs, although this varied between councils throughout the region.

The four councils' rating model was being transferred to Tiaki Wai for the first year's bills, but over time, the organisation would move to a common pricing model.

Tiaki Wai was looking at charging for usage through water meters "very closely", but it was a "big job", with about 140,000 water meters to roll out.

"We do recognise it's a big programme of work and will cost quite a lot of money, so we're therefore trying to really ensure we do that in an effective way."

Tiaki Wai was considering a pilot programme on meters, but hadn't decided on details, List said.

He said water bills would go to landlords, but acknowledged charges could be passed on to tenants in higher rents.

A Tiaki Wai spokesperson said people could access videos of online meetings on its website and it may plan more meetings.