Selwyn Water’s deputy chief executive Heather Geddes said the organisation is acutely aware of the cost pressures facing households.
Photo: LDR / Supplied
Selwyn Water Limited has revealed a proposed 18 percent rates hike for drinking and wastewater services, but it’s unclear how it fits with the council’s draft 5.4 percent rates rise.
The new water entity submitted its draft 10‑year water services draft plan, including 2026/27 pricing, to the Selwyn District Council on Friday.
For an average urban household, using drinking water and wastewater services, the cost could increase by $280, taking the total bill to around $1831.
This is based on the 2025/26 year and households who use less water would also pay less.
The water services delivery plan had indicated a 24 percent jump, which would have been a $320 increase.
Selwyn Water wanted to ensure the draft figures were included in the annual plan consultation, which came out this week.
Selwyn Water chief executive Alex Cabrera said the common single district-wide average percentage was not used.
“Not all properties in the district are connected to both water supply and wastewater services, so the overall impact varies depending on the services each property receives.”
That is the same for council rates, which commonly presented an average increase figure based on the total rates take, with the individual figures varying depending on targeted rates, services, and property values.
Selwyn Mayor Lydia Gliddon said the 18 percent increase is more likely a 3-4 percent weighted average, when it’s factored in alongside the council’s proposed 5.4 percent average rate rise.
“We need Selwyn Water to quantify all rating units and charges before they can give us the final data.”
In the neighbouring Ashburton District Council – which has an inhouse business unit for water and doesn’t charge based on water use – is proposing a 3.75 percent increase for its three waters services and 4.96 percent for everything else.
That 3.75 percent will vary greatly for those who receive the services.
From 1 July 2026, Selwyn water and wastewater charges will no longer be included in Council rates and customers will receive direct, itemised water bills.
Selwyn Water charges will be by targeted rate and volumetric charging (based on water use), just like the council has been.
Selwyn Water’s deputy chief executive Heather Geddes said the organisation is acutely aware of the cost pressures facing households.
“Affordability has been central to our thinking throughout this transition, and our pricing reflects a disciplined effort to deliver value while strengthening long-term resilience.”
“By improving the accuracy of the data we received at the asset transfer, we’ve been able to moderate the draft figure without compromising the investment our fast-growing district needs.”
Mayor Gliddon expects both rate increase figures to be lower by 1 July.
She said the council’s draft 5.4 percent rates increase is just the “initial draft starting number”.
“We’ve instructed staff that we want extra savings, and they need to work as hard as possible to get those down.”
“Selwyn Water are still working through the same process as council are, so that’s their initial draft number.”
Cabrera said Selwyn Water has been working with the council and has already reduced the previously forecast increase from 24 percent to 18 percent.
“This work is still ongoing and has highlighted inconsistencies in the data, including properties and service connections that were not accurately captured, as well as gaps or inaccuracies in capital works information.
“We are continuing this work so these issues can be resolved by 1 July.”
LDR is local body journalism co-funded by RNZ and NZ On Air.