Wellington’s new water entity Tiaki Wai is under review by the Commerce Commission after releasing projected charges last month.

The Commission has begun meeting with Tiaki Wai and the region’s five councils. It is examining a revised Water Services Strategy, including pricing.

Tiaki Wai’s projections included household bills reaching up to $6800 a year within a decade. The entity warned of steep increases, including a 14.7 percent rise next financial year and a possible 28 percent rise in 2027–28.

The Commission was asked to step in after concerns from Local Government Minister Simon Watts and Wellington Mayor Andrew Little. Chair John Small said the regulator is assessing Tiaki Wai’s financial model but does not yet have evidence of overcharging.

Tiaki Wai will take over $9b in water assets and $1.7b in debt from 1 July. It has a $6.8b capital programme over ten years. Operating revenue of $385m in the first year will not cover the backlog of failing plants and leaking pipes.

Small said the councils and Tiaki Wai’s board must agree on the financial model. He said easing costs may depend on how quickly the entity becomes financially viable.

The Commission is regulating water services under the Local Water Done Well model. It may gain powers to regulate pricing, subject to ministerial approval.

Mayors across the region said the initial charges were too high. Little called them unreasonable and said the pricing strategy needed reconsideration. Porirua mayor Anita Baker said Tiaki Wai could revise its work programme to reduce costs. Lower Hutt mayor Ken Laban said the charges would be unaffordable for some households. Upper Hutt mayor Peri Zee said government funding support was needed due to the scale of infrastructure issues. Greater Wellington chair Daran Ponter said Tiaki Wai must ease consumers into rising costs.

Watts said the Crown will not provide financial assistance. He said the Commission is working with Tiaki Wai and councils on financial models to manage customer impacts.

Tiaki Wai declined an interview. Chair Will Peet said in a recent webinar that the community finds the charges unaffordable and the board is looking at options. He said the entity must charge enough to improve essential services but not more than necessary.

Source: Ellen O’Dwyer – Radio New Zealand

13/04/26