Auckland City Council is encouraging Metrowater to consider returning to its customers a significant portion of its projected end of year surplus for the 2009/10 financial year.

Council's Finance and Strategy Committee this morning received Metrowater's half yearly financial result.

"Metrowater is $5.7m ahead of budget for the first half of the year - largely as a result of higher than expected water consumption," says Councillor Douglas Armstrong, chair of Auckland City Council's Finance and Strategy Committee.

"Fortunately, the economic recession has been less severe than predicted, and Aucklanders' water consumption has picked up. I believe the fairest option is to return a portion of the expected end-of-year profit to Metrowater's customers," says Mr Armstrong.

The committee also requested information on what impact the current increase in water usage could have on water prices for the next financial year.

Mr Armstrong says the committee's stance is in line with council's policy to minimise water costs while maintaining a secure and reliable network.