The Rarotonga water authority is ‘confident’ in its ability to defend its water quality standards and delivery under the Consumer Guarantees Act, despite concerns raised by the Chamber of Commerce regarding pressure, reliability and potability.

To Tatou Vai (TTV) last week announced the final water tariff structure for household and commercial users, for the period October 1, 2024 to September 30, 2025.

Following the announcement, Chamber of Commerce’s Steve Anderson said “…  it remains unclear how TTV will avoid legal issues under the Consumer Guarantees Act, while they do not guarantee to consumers that the product/service they are selling is (Sec 6) ‘of acceptable quality’ and ‘safe’.”

According to the Consumer Guarantees Act 2008, any goods bought from a supplier must be:

• Acceptable quality, which includes being fit for all purposes that they are normally used for, and being safe and durable.

• Fit for any particular purpose that you tell the supplier you want the goods for, or that the supplier has advertised the goods as being fit for

• Match the description of the goods, as well as any samples or demonstration shown to you prior to purchase.

Anderson said the Chamber was pressing To Tatou Vai for a timeline towards acceptable pressure, reliability and potability of supply.

“TTV has stated that this is dependent on reducing consumption, a primary aim (and typical outcome) of charging a tariff.”

The water supplied by TTV remains untreated, and one of its roles is to provide safe drinking water to the Rarotonga community.

TTV chief executive officer Tereapii Timoti says the issue of suitable quality of water under the Consumer Guarantees Act 2008 is one TTV is confident it can defend. 

“The water quality now delivered, thanks to the Te Mato Vai project, is far superior to what was previously supplied, even if it falls short of being fully potable,” Timoti said.

“The issue of pressure and reliability remains a priority, and work is ongoing to improve this as resources allow.”

In relation to leaks in the network affecting pressure, Timoti said: “As metres are installed and leaks are being identified on private property, consumers are being informed.”

For residential users, the water authority has set a $17 per month per connection or household for consumption of not more than 50,000 litres per month. The $17 monthly charge will be fully subsidised by the government as provided for in To Tatou Vai Act.

Residential users will have to pay $34 per month for consumption between 50,000 litres and 100,000 litres.

Churches, community halls and schools will be charged at the domestic (residential) rate.

The commercial rates are divided into blocks. For Block 1, up to 50,000 litres per month per connection, commercial users will be charged $34. For each subsequent block of 50,000 litres per month per connection, they will be charged $68. The total charge is derived from $34 for Block 1 plus the total for the subsequent blocks.

For instance, if Connection A uses up to 50,000 litres per month, the charge is $34.

If Connection B uses 290,000 litres per month, the charge is derived as follows:

•           There are six blocks of 50,000 litres

•           Block 1 is $34

•           Subsequent five blocks are 5 x $68 = $340

•           Total is $34 + $340 = $374

If Connection C uses 1,000,000 litres per month, the charge is derived as follows:

•           There are twenty blocks of 50,000 litres

•           Block 1 is $34

•           Subsequent 19 blocks are 19 x $68 = $1292

•           Total is $34 + $1292 = $1326

Chamber of Commerce’s Anderson said that it was unclear whether “per-litre” consumption billing would commence when all water meters were installed, requiring a new tariff structure.

He said that the Chamber had also raised that billing whole band amounts might be counterproductive as an incentive to reduce water consumption.

“Consumers exceeding the limit of one 50,000 litre increment have no incentive to save water up to the next increment,” Anderson said.

Timoti earlier told Cook Islands News that all properties likely to consume more than 50,000 litres per month have been metered.