Option A: Joint Regional Model - our proposed option

A Water Services Council Controlled Organisation (WSCCO) jointly owned by the three Taranaki district councils, is set up to deliver drinking water and wastewater services across the region. Stormwater service delivery remains with individual councils under this proposed regional model.

How it would work

Each council would be a shareholder in the new jointly owned organisation. They would create a committee to oversee the organisation. The make-up of the committee would include representatives of each council and iwi mana whenua. The committee would appoint a Board comprised of independent, professional directors, chosen for their skills and experience in relevant areas. The Board would be responsible for ensuring the organisation meets the expectations and levels of service set by the shareholders, as well as all legal and regulatory requirements. This means operational and investment decisions would sit with the WSCCO, rather than with elected members from each council.

Impact on the community

Pooling our resources gives us greater access to the finance, people and systems that will ensure our water services are safe and support communities and businesses. A regional approach will improve the ability to coordinate investment in infrastructure, take advantage of new national engineering standards and design solutions, and plan delivery more efficiently.

A larger number of consumers mean the organisation will have greater access to funding for investment or to meet unexpected events, and help to keep costs to individual consumers lower than the alternative. A larger customer base means the increasing costs of water infrastructure will be spread across a greater number of customers.

We recognise that some people, especially in smaller communities, may be concerned that ‘bigger isn’t always better’. However, it is important to remember that a water service organisation must meet national requirements for quality and service, and council requirements for current levels of service to our communities regardless of size.

Some communities and customers will continue to have different levels of service. For instance some customers are on restricted flow connections; others do not get wastewater services. The proposed model means that consumers will continue to pay for what they use, at a fair cost based on their level of service.

Check out the impact on levels of rates, debt and services here.

Water Services at a Regional Level

• 17 water supplies
• 12 wastewater schemes
• 2,773km of drinking water and wastewater pipes

The Joint WSCCO would provide water services to 79% of the region’s residents and wastewater services to 72%. This covers 45,899 water connections and 40,913 wastewater connections.

The water and wastewater services debt is expected to increase from $266 million to $429 million over the 10 years from 2024 to 2034.

• $1.2 billion is how much the existing regional assets are worth
• $2.1 billion is how much it would cost to replace these assets
• $75 million how much water and wastewater services cost each year to operate in Taranaki.

Key Investment required

All councils have a significant investment programme in renewals. Stratford and South Taranaki district councils have major wastewater treatment plant upgrades while New Plymouth District Council has a drinking water treatment plant upgrade, and improvements to Waitara and Inglewood drinking water networks.