Under current policy, domestic properties within the Rotorua Urban Fence that are less than 2000 square metres in area, are not metered for water usage (with a few exceptions). These properties receive a set charge (UAC).
Exceptions to this include properties that contain more than two dwellings under the same ownership, and properties outside of the Urban water supply boundaries, referred to as Extra-territorial properties.
All water connections within the Rural supplies are metered, as are all extra-ordinary water connections in the Urban area. The meters are physically read every three months, in August, November, February and May.
An extra-ordinary water connection is defined as one that serves a commercial or industrial property, more than two domestic dwellings or where there is usage that falls outside the definition of ordinary use, e.g. Geothermal water heat exchanging or hot pool cooling, property area in excess of 2000 square metres,etc.
Consumption Charges
All water consumed is charged at a set rate per cubic metre (1 cubic metre = 1,000 litres).
Minimum Quarterly Charge
Some supplies have a set Minimum Quarterly Charge. This means than if the consumption charged is less than a certain amount, the account is "topped up" to the minimum. The reason this is done is to ensure that there is sufficient revenue collected to cover the costs of supplying the water.
Quarterly Supply Charge
Most rural supplies do not have a set minimum charge, rather each connection receives a Supply Charge for fixed costs, plus a Consumption Charge for the water consumed. This system has been established to ensure that large and small consumers alike, pay an equal share of the fixed costs of operating and maintaining the supply.
The Supply Charge is calculated by dividing the fixed costs by the number of consumers. Fixed costs are those which do not change in relation to how much water is used. These are all costs other than variable costs.
Consumption Charges relates only to the costs incurred in supplying the water, the variable costs. These are electricity, chlorine, plus a small allowance for wear and tear on mechanical equipment.