Water metering in Central Otago towns should continue but bills for some excess water use should be deferred until revised charges are approved, district council water services manager Russell Bond says.
A report from Mr Bond will be considered by the Central Otago District Council at its first meeting today.
He presented several options in a review of water metering, including abandoning water metering, installing meters but not charging for excess water, and deferring charging for excess water use.
Meters have been installed, or are being installed, in towns served by town water supplies throughout the district.
As at October 1, meters were installed on all Bannockburn, Pisa village and Patearoa properties connected to town water.
Metering is under way in the rest of the district's towns, with all meters expected to be installed by 2013.
Cromwell has 99% of properties metered, Clyde 50%, Alexandra 78%, Omakau 58%, Ranfurly 50%, Naseby 55%, Lake Roxburgh 30% and Roxburgh 30%.
Commercial properties are already being billed for water, as are owners of sections of more than 1100sq m.
Abandoning water metering would add a "significant" amount to the cost of upgrading drinking water schemes, required under health regulations, Mr Bond said.
The district's community boards set the amount of "free" water allocated to each property and the charges for excess water.
Water metering was aimed at getting consumers to conserve water, he said.
A reduction in peak water demand by 25% in Alexandra, would reduce the capacity needed for an upgraded water treatment plant.
That would result in a saving of 20% on the cost of the project - saving up to $1.6 million on construction costs.
"If water demand management [metering] fails to reduce peak demand, future upgrades [of water schemes] will quickly become unaffordable to communities like Naseby, Omakau, Roxburgh and Lake Roxburgh Village," he said.
"It is not a matter of water availability for towns that sit on the banks of the Clutha or Manuherikia River. It is the cost of treatment and compliance with the drinking water standards that make it costly."
The council's current drinking water strategy failed to identify community needs clearly.
Everyone wanted a greater allocation of "free" water, but the higher that figure was, the less effective water metering would be in reducing demand for water, Mr Bond said.
He recommended billing small section owners for excess water in most of the towns be deferred until the council approved revised charges.
