requiring territorial authorities to prepare water services delivery plans; and

providing for the Minister to assist or intervene if territorial authorities find it difficult to prepare a water services delivery plan; and

requiring territorial authorities to publicly disclose specified foundational information in relation to delivering water services, for the purpose of supporting economic regulation; and

providing specific consultation and decision-making processes for territorial authorities to use when—

providing a financially sustainable model for Watercare to be financially separate from Auckland Council and an interim economic regulation regime for Watercare that is administered by a Crown monitor.

subpart 1, which requires territorial authorities to prepare and submit water services delivery plans:

subpart 2, which relates to ministerial powers in relation to water services delivery plans:

subpart 3, which sets out a framework for specified territorial authorities to disclose additional foundational information for the purposes of economic regulation, and also includes provisions relating to information sharing and enforcement.

must use when consulting or making decisions on including an anticipated or proposed model or arrangement for delivering water services in a water services delivery plan; or

may use in relation to other parts of a water services delivery plan; or

may use when establishing, joining, or amending council-controlled organisations or joint local government arrangements that will deliver water services.

to set out consultation and decision-making requirements, in place of certain consultation and decision-making requirements set out in the LGA2002 (the alternative requirements), that territorial authorities—

to give territorial authorities greater flexibility in relation to WSCCOs, water services delivery plans, and joint local government arrangements by setting out additional powers to, or exemptions from, specific provisions in the LGA2002 (see sections 65 to 68).

a reference to a territorial authority includes, where applicable, a reference to the Wellington Regional Council; and

a reference to a territorial authority’s district includes, where applicable, a reference to the relevant part of the Wellington Regional Council’s region.

is deciding whether or not to establish, join, or amend—

before adopting its water services delivery plan, is making decisions in relation to an anticipated or proposed model or arrangement for delivering water services in its water services delivery plan (see section 13(1)(k)).

must identify both of the following 2 options for delivering water services:

may identify additional options for delivering water services; and

must assess the advantages and disadvantages of all options identified.

is deciding whether or not to establish, join, or amend—

when adopting its water services delivery plan, is making decisions in relation to an anticipated or proposed model or arrangement for delivering water services in its water services delivery plan (see section 13(1)(k)); or

decides to consult on a part of its water services delivery plan, other than a model or arrangement described in paragraph (b).

the requirement in section 78(1) of the LGA2002; and

the extent to which the authority already knows the views and preferences of persons likely to be affected by, or to have an interest in, the decision; and

the nature and significance of the decision, including its likely impact from the perspective of the persons who will or may be affected by, or have an interest in, the decision.

the consultation under this section; and

the authority’s consultation on its 2025–2034 long-term plan.

a proposal to give effect to an anticipated or proposed model for delivering water services under a water services delivery plan (see section 13(1)(k)); or

a proposal to establish, join, or amend a WSCCO or a joint water service provider arrangement under section 26 of the Local Government (Water Services) Act 2025.

has already consulted its community in relation to the proposal; and

is satisfied that its community has a good understanding of the implications of the proposal; and

is satisfied that it understands its community’s views on the proposal.

in relation to whether or not to establish, join, or amend—

before adopting its water services delivery plan, in relation to an anticipated or proposed model or arrangement for delivering water services in its water services delivery plan (see section 13(1)(k)); or

on a part of its water services delivery plan, other than a model or arrangement described in paragraph (b).

the proposal, an explanation of the proposal, and the reasons for the proposal:

an analysis of the reasonably practicable options (including the proposal), which must,—

how proceeding with the proposal is likely to affect—

how not proceeding with the proposal is likely to affect—

if the proposal involves establishing, joining, or amending a joint WSCCO or a joint local government arrangement, the implications for communities throughout the joint service area of the joint WSCCO or the joint local government arrangement:

if the proposal involves transferring ownership or control of a strategic asset to the WSCCO or the joint local government arrangement, a description of any accountability or monitoring arrangements the authority will use to assess the performance of the WSCCO or the joint local government arrangement in regard to the asset:

any other relevant implications of the proposal that the authority considers will be of interest to the public.

the impact of the joint WSCCO, the joint arrangement, or the joint local government arrangement on the communities in the joint service area (as well as the impact on the authority’s district); and

the views of people in communities in the joint service area (as well as the views of people in the authority’s communities); and

the views of the other territorial authorities who are—

identify and assess the options under section 61(2) of this Act or section 77(1) of the LGA2002:

recommend a proposal to the territorial authorities for the purposes of consultation:

if the territorial authorities have authorised the joint committee to do so, undertake consultation on behalf of the territorial authorities:

following all required consultation, recommend a decision to the territorial authorities.

amend its long-term plan; or

provide for the joint WSCCO, the joint arrangement, or the joint local government arrangement when adopting its long-term plan.

approving corresponding amendments to their long-term plans; or

adopting their long-term plans with corresponding provisions.

is deciding whether or not to establish, join, or amend a WSCCO; or

is deciding whether or not to establish, join, or amend a joint water service provider arrangement under section 26 of the Local Government (Water Services) Act 2025; or

is deciding whether or not to change its water services delivery arrangements as part of an anticipated or proposed model or arrangement for delivering water services in its water services delivery plan (see section 13(1)(k)); or

has established, joined, or amended a WSCCO; or

has established, joined, or amended a joint local government arrangement; or

has changed its water services delivery arrangements as part of an anticipated or proposed model or arrangement for delivering water services in its water services delivery plan.

to promote the long-term benefit of consumers of water services provided by Watercare; and

to ensure that sufficient information is readily available to interested persons to assess whether the purpose in paragraph (a) is being met; and

to ensure that Watercare manages its operations efficiently with a view to keeping the overall costs of delivering water services at the minimum levels consistent with the effective conduct of its undertakings and the maintenance of the long-term integrity of its assets.

has incentives to—

shares with consumers the benefits of efficiency gains in supplying water services, including through lower prices; and

is limited in its ability to extract excessive profits.

little or no competition in providing those services; and

little or no likelihood of a substantial increase in the level of competition.

an individual; or

a Crown entity; or

a company named in Schedule 4A of the Public Finance Act 1989.

the Crown monitor; and

Watercare.

the name of the Crown monitor; and

the date on which the Crown monitor’s appointment starts; and

the terms of reference of the Crown monitor.

change the terms of the Crown monitor’s appointment; or

change the Crown monitor’s terms of reference; or

end the Crown monitor’s appointment.

on an internet site maintained by, or on behalf of, the department; and

in a format that is readily accessible.

monitor, and report on, Watercare’s performance against the charter (see sections 86 and 87); and

take action to address any failure by Watercare to comply with the charter (see sections 91 to 96).

make any changes to the draft Watercare charter that the Secretary thinks fit to make as a result of the consultation; and

then submit the charter to the Minister.

each part of the charter separately (see section 78); and

Part 2 of the charter after submitting Part 1 of the charter.

Part 1 of the charter (see section 79), which—

Part 2 of the charter, which must—

services provided by Watercare to consumers:

the performance of Watercare’s water supply network:

the performance of Watercare’s wastewater network:

the delivery of Watercare’s capital investment.

the maximum amount of revenue that Watercare may earn on water supply services and wastewater services:

the approach that Watercare must use to recover the cost of its infrastructure through infrastructure growth charges:

efficiency targets that Watercare must achieve:

the minimum credit rating that Watercare must maintain.

the sources of, and Watercare’s intended approach to, funding, revenue, and pricing; and

Watercare’s water infrastructure growth charging policy; and

Watercare’s intended approach to pricing its services and charging customers; and

Watercare’s financial strategy for each financial year covered by the plan; and

Watercare’s intended efficiency improvements for operating and capital expenditure; and

Watercare’s investment priorities for its infrastructure assets; and

how Watercare will—

information about how the plan helps to achieve Watercare’s proposed activities and intentions (as set out in its statement of intent).

the business plan that it submits complies with any requirements specified by the Secretary as to the form and content of the plan; and

it provides each component of the plan to the Secretary in any order specified by the Secretary.

in detail in relation to each of the first 3 financial years covered by the plan; and

in outline in relation to each of the subsequent financial years covered by the plan.

must review the plan; and

may require Watercare to provide additional information relating to the plan; and

may provide written comments on the plan to Watercare; and

must specify a time frame for Watercare to submit a final version of the plan.

must consult Auckland Council; and

may consult any other person the Secretary considers appropriate.

providing any additional information requested by the Secretary; and

taking into account any comments made by the Secretary.

the period to which it applies (which must not be more than 5 years):

the minimum or maximum price or prices that Watercare may charge:

the minimum or maximum revenue that Watercare may recover:

the minimum service quality standards, performance targets, or financial performance objectives that Watercare must meet.

penalties by way of a reduction in Watercare’s maximum prices or revenues based on whether, or by what amount, Watercare fails to meet the minimum service quality standards, performance targets, or financial performance objectives specified in Part 1 of the Watercare charter:

rewards by way of an increase in Watercare’s maximum prices or revenue based on whether, or by what amount, Watercare meets or exceeds the minimum service quality standards, performance targets, or financial performance objectives specified in Part 1 of the Watercare charter.

requirements to adopt a particular approach to risk management:

requirements in relation to the condition of assets and remaining asset life:

requirements to make particular types of investment:

requirements to provide information about any investments planned for a particular period:

requirements to consult the Crown monitor about certain kinds of investments and investment decisions:

requirements to adopt asset management policies and practices:

requirements to ring-fence minimum amounts of revenue for investment purposes:

reporting requirements, including—

requirements that any disclosed information, or any information from which disclosed information is derived, be verified by statutory declaration or certified (in the form specified by the Secretary) as true and accurate:

requirements to undertake cost-benefit analysis before Watercare begins any specified projects:

requirements relating to consultation and engagement with consumers:

requirements based on comparative benchmarking of efficiency.

financial statements (including projected financial statements):

asset values and valuation reports:

prices, terms and conditions relating to prices, and pricing methodologies:

contracts:

transactions with related parties:

financial and non-financial performance measures:

plans and forecasts, including (without limitation) plans and forecasts about demand, investments, prices, revenues, quality and service levels, capacity and spare capacity, and efficiency improvements:

asset management plans:

quality performance measures and statistics:

assumptions, policies, and methodologies used or applied in relation to relevant information, including in relation to the information listed in paragraphs (a) to (i).

a written statement advising whether Watercare is complying with the price-quality path:

a written report analysing the written statement under paragraph (a), signed by—

sufficient information for the Crown monitor to be satisfied that Watercare is complying with the price-quality path.

in the form specified by the Crown monitor; and

signed by at least 1 director of Watercare.

minimum service quality standards or performance targets:

financial performance objectives:

the price-quality path.

provide the report to—

as soon as reasonably practicable after complying with paragraph (a), make the report available to the public on an internet site maintained by, or on behalf of, the Crown monitor in a format that is readily accessible.

expenses incurred by the Crown monitor in relation to performing or exercising its functions, duties, or powers under this Act; and

the remuneration of the Crown monitor; and

expenses incurred by the Secretary in relation to preparing or amending the Watercare charter.

Auckland Council; and

Watercare.

specify, or specify classes, descriptions, or kinds of, all or any of the expenses:

impose a cap on classes of expenses or total expenses:

specify a time period in which classes of, or total, expenses are incurred, for the purposes of calculating a cap.

the charter; and

the application of the charter to Watercare; and

decisions made by the Secretary in relation to the charter.

engage with any party it considers practicable (for example, the Water Services Authority); and

unless it is appointed to be the Crown monitor, provide services to the Crown monitor or the Secretary (for example, under a service-level agreement).

the Commission has the functions, duties, and powers required to perform that role; but

this section and the obligation under section 76(2)(a) for the Secretary to consult the Commission do not apply.

has contravened the Watercare charter; or

has attempted to contravene the Watercare charter.

an order requiring Watercare to comply with the charter:

an injunction restraining Watercare from contravening the charter:

an order requiring Watercare to pay to the Crown a pecuniary penalty:

any other order that the court considers appropriate in the circumstances, including an order directing Watercare to pay to the Crown the costs of the proceedings.

failing to comply with the requirements in a price-quality path, whether by charging a price for services that is higher than the maximum price permitted, or by receiving more revenue than is permitted, or in any other way:

failing to comply with the requirements in any minimum service quality standards or performance targets, or in any financial performance objectives:

failing to comply with the requirements relating to a customer compensation scheme.

the nature and extent of the contravention; and

the nature and extent of any loss or damage suffered by any person as a result of the contravention; and

the circumstances in which the contravention took place (including whether the contravention was intentional, inadvertent, or caused by negligence); and

whether the court, in proceedings under this Act or any other legislation, has previously found Watercare to have engaged in any similar conduct.

to comply with a notice under section 85 requiring Watercare to disclose information; or

to comply with the requirement to submit a business plan in accordance with section 80.

an order directing Watercare to comply with the relevant obligation:

an order requiring Watercare to pay to the Crown a pecuniary penalty:

any other order that the court considers appropriate in the circumstances, including an order directing Watercare to pay to the Crown the costs of the proceedings.

begins on the day after the day on which the pecuniary penalty was imposed under section 91 or 93 (as applicable); and

ends on the day on which the breach is remedied.

not later than 20 working days after the date on which the order was made or notice of the decision was communicated to the appellant; or

within any further time that the Court of Appeal allows.