What is volumetric charging?
Volumetric charging is a "user-pays" method of charging for wastewater services. For customers connected to a public water supply system, the volume of wastewater is estimated to be 80% of the water that you consume (i.e. we assume that 20% of the water you use does not return to the public wastewater system).
Why did the Council changed to volumetric wastewater charging?
The change to volumetric charging represents a move towards a fairer way of gathering wastewater revenue since it works on a “user pays” principle. Instead of charging people a flat fee, regardless of how much or how little they use -- where we are able -- we now charge based on metered water consumption. In addition, this change encourages people to be more efficient in their water usage, which has both economic and environmental benefits. Volumetric charging has also been recommended by both the Rating Enquiry Panel and the Royal Commission on Auckland Regional Governance.
What if I don’t have a meter?
If you are connected to a council wastewater system, but have your own water source (e.g. water tank or bore) and do not have a meter, you will be charged a fixed charge for wastewater. This will be similar to, but replace, your old pan charge.
Is the new volumetric system fairer than the old pan charge one?
For users on volumetric charging they will only be charged for wastewater processing according to the metered water they use. For those on a fixed charge, total wastewater costs will be similar to previous years.
What is the basis for the 80% figure as the amount of water processed as wastewater?
BRANZ (an independent company providing resources for the building industry) conducted a study into Auckland water usage in 2008 and found that approximately 80% of water used by households was for indoor use.
Can I install a meter onto my own water source?
There is no option to do this at the moment. However, council is currently undergoing a pilot scheme for customers in these circumstances. Once the pilot is complete, council will advise you of any changes in the charging system. For the 2009/10 year, a fixed charge will apply.
What if I use less than 120 kilolitres of water?
If you are on a metered council water supply and regularly use less than 120 kilolitres of water a year, it is assumed you have another water source. So, if you are connected to a council wastewater system, you will be charged a fixed charge, similar to, but replacing, the old pan charge. However, if you are a customer that regularly uses less then 120 kilolitres of water a year and your only water source is from council, then you should complete the Low Use Declaration form. This will ensure you are only charged for wastewater according to your Council water usage.
The flowchart below illustrates how you can work out how you are charged for volumetric wastewater:
Will a volumetric charge appear on my rates bill?
No, but your rates bill will continue to have a Property Utility charge for wastewater – this charge covers the depreciation and interest costs of wastewater infrastructure. Meanwhile, charges for actual processing of wastewater (known as volumetric charges – previously known as pan charges) will no longer appear on your rates bill. These volumetric charges will be billed bi-annually (twice yearly) at the same time that water accounts are issued.
When will I get my wastewater volumetric bill?
Wastewater volumetric bills will be issued at six monthly intervals. For the Hibiscus Coast ward bills will be in October and April. For the three other wards, bills will be in November and May.
Why was the first billing for the new volumetric wastewater system (dated 25 Oct 2009 for Hibiscus coast customers and 15 Nov 2009 for other customers) not for a full six months ?
Wastewater charges (previously known as the Pan charge on the rates bill) for actual processing of wastewater used to be included on the rates bill, but are now charged six monthly on a water/wastewater bill.
The first water/wastewater billing encompassing the new volumetric system only charged for wastewater for the period from the 1st July 2009. This is the date upon which the new system began. All wastewater charges before this date were already included on the 2008/9 rates bill.
For Hibiscus coast customers this meant that the first water/wastewater billing included wastewater charges for only three months (July, August, September). For customers outside the Hibiscus coast region the first billing included wastewater charges for only four months (July, August, September, October).
In addition to the above charges, the Wastewater Utility charge that covers the depreciation and interest costs of wastewater infrastructure continues to be an element on the annual rates bill. This is no different to previous years.
How can I pay my volumetric bill?
You can pay your bill:
1) By direct debit – by instalment only (6 monthly)
2) By telephone/internet banking
3) At any branch of the Bank of New Zealand within the Rodney District (by cash, cheque, BNZ eftpos)
4) By post, using the reusable envelope provided for New Zealand resident ratepayers
5) In person at any of our Council Offices (eftpos facilities are available; credit cards are not accepted)
6) Online with Visa or MasterCard. The Bank of New Zealand charges a convenience fee to use this service.
7) By setting up a monthly Automatic Payment (AP) with your bank (the Council does not monitor AP payments).
I have received an invoice and a Low Use Declaration form. I want to fill in the declaration form and send it back. Should I also pay the invoice?
Yes you should. We will process all Low Use Declaration forms, however since this requires us to verify the information you have given it will take some time to complete the process. Once we have approved your Low Use Declaration we will recalculate your charges from 1st July 2009 and process any credits due on your next bill. We will also ensure that you are a volumetric rather than a fixed customer for wastewater going forwards.
What if I believe that my wastewater processing requirements are for less than 80% of my water usage?
This might occur in some situations where a significant proportion of the water consumed is used outside of the premises. For example, some businesses may use water in the process of producing a product or service. Another example is where more than 20% of the supplied water is used to irrigate land or for some other outdoor activity (most residential properties would typically use less than 20% of their water on the garden).
If you believe that your business produces less than 80% wastewater, you can apply to Council to have a water-use audit carried out, but you will have to pay for this. If you have a high outdoor water use, one option is to install a second water meter on this supply (at your cost) and have no wastewater charges associated with it (in this case the house supply would be charged at 100% rather than 80%). There may be other options available, so please contact us to discuss your situation.
I am building a new house that will connect to the wastewater system. When will I be charged from?
New houses are subject to a Council drainage inspection. From this inspection we are able to ascertain your water sources and hence how you will be charged for wastewater. You will be charged for wastewater processing for the next full six month billing period after the inspection.
I plan to switch from my own sewerage system to a Council wastewater system. When will I be charged from?
Customers who connect to wastewater for the first time are subject to a Council drainage inspection. From this inspection we are able to ascertain your water sources and hence how you will be charged for wastewater. You will be charged for wastewater processing for the next full six month billing period after inspection.
What should I do if I’m selling a house connected to wastewater?
If you are selling a house that is connected to a Council wastewater system, make sure your solicitor is aware of this so that they can ensure wastewater charges are correctly apportioned between you and the new purchaser.
What should I do if I’m buying a house connected to wastewater?
If you are buying a house that is connected to a Council wastewater system, make sure your solicitor is aware of this so that they can pass this information on to the vendor’s solicitor. They will ensure that charges are correctly apportioned between you and the vendor.
What should I do if I own and let a house connected to wastewater?
Council can give you advice on how to apportion your wastewater costs between tenants when old ones leave and new ones move in. Please contact Council if you need help with calculating the apportionment
Can volumetric wastewater charges be included when applying for a rates rebate?
No. Volumetric wastewater charges are a "charge" or "fee" and not a rate. This means they cannot be included in your rates figure when applying for a rates rebate. Council is required to comply with the Rates rebate Act 1973 on this matter.
Is volumetric wastewater charging a revenue gathering exercise for Council?
No. There is no increase to council revenue with the introduction of volumetric charging. However, this change does bring the council into line with recommendations from both the 2007 Government appointed Rating Enquiry Panel and the 2009 Royal Commission on Auckland Governance that councils should charge for wastewater on a volumetric basis
What should I do if I have any further questions?
Please contact us