Hot water price (CBD Auckland)

Ltasaloti02 on 25/02/2022 - 16:42

Hi,

I am a tenant in one of the apartments in Auckland CBD. Recently, I received water bill and I noticed a 40% increase in hot water (from $8.27/1000 litres to $11.49) and 11% increase in "daily fixed charge" (from 0.59c/day to 66).

I understand I have no choice in energy company for hot water supply as the whole building is supplied with one provider. However, I am wondering if this amount of increase as correct?

Back in November 2021, they sent an email saying that there will be an increase in Feb 2022. Also, they mentioned that they haven't increase the price since 2014!

I had a phone call with them and they said that they haven't increased the priced for 8 years and now they have to do that.

I moved to this place less than a year ago, so it is quick shocking to see that amount of increase in prices.

I appreciate if you have any thoughts.

Cheers.

General Discussion

Comments

  • Alan6984 on 25/02/2022 - 16:56
    +1

    If that is correct (no increase for about eight years) then 40% over that time is an average compound annual increase of about 4.3% which seems a little out there for the period (fairly low inflation for most of the eight years), but I haven't paid any specific notice to our water charges myself, so maybe someone else can comment on that.

    Alan.

    • tasaloti02 on 25/02/2022 - 17:18

      Thanks for your comment. I imagine annual increase in "wholesale natural gas" (this is what the person over the phone told me) wouldn't be around 4.3% each year. I tried to dig out some information about the price of wholesale natural gas for residential buildings and it seems to be fairly unchanged.

      The other side is that not all of the residents would be in the same place for 8 years (like myself for less than a year). Is this type of strategy acceptable (no price change for few years and then suddenly sharp increase!?

      • Alan6984 on 25/02/2022 - 17:26

        Well - I think they have been a bit foolish, since they (presumably) could have charged more for each of the last seven years, but in terms of whether the charges are acceptable now, that is a market negotiation between the supplier (them) and customer (you).

        I have no idea if the overall amount is significant to you, but if so, then you could look around at other options (so as to have some idea of what costs are reasonable right now), and then negotiate with them. I would imagine that right now rents and other costs in the CBD would be through the floor due to massive vacancy rates, in which case they are likely to be quite willing to do you a deal?

        If the hassle of moving is too great, maybe not worth it?

        Alan.

        • tasaloti02 on 26/02/2022 - 01:35

          I have no problem for the increase and no plan to move out just because of this increase. Loads of hassle as you pointed out and I am quite happy with the rent and the size of the unit.
          But generally, I wouldn't imagine these sort of things could happen these days. It could be due to the monopoly.

  • F armer on 25/02/2022 - 19:19

    I have lived in numerous apartments in town and non of them had a single 'fixed' power supplier, which apartment do you live in and who is the power supplier?
    Maybe it's one of those apartments where tenants can only use the internet company provided by the management hmm

    • Alan6984 on 25/02/2022 - 21:49

      This is about water charges, but the general point is the same.

      • F armer on 26/02/2022 - 08:18

        sorry i said power supplier as hot water is either electric water cylinder or a gas, both of which are via a power company

        • Alan6984 on 26/02/2022 - 10:57

          Good point!

    • tasaloti02 on 26/02/2022 - 01:33

      This apartment has a fixed cold and hot water provider. The company is EnergyCo ltd.
      No issue with power and internet.

      • F armer on 26/02/2022 - 08:23

        does that mean your power rate is low as hot water is charged seperately?

      • boovohh on 03/03/2022 - 01:03

        ask them if you are on open term or a yearly contract. rates have gone up on many providers for open term only

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