Separate annual levies are payable in respect of each of the following water services:

The Water Services Authority must apportion the total amount of levies payable in respect of water services in any given financial year between districts using the following calculation:

The Water Services Authority must carry out the calculation set out in subclause (1) for a financial year before the start of that financial year.

An apportionment of levies applies for the entire financial year, even if new census data becomes available during that year.

If the territorial authority of a district is the drinking water supplier, wastewater network operator, or stormwater network operator for the district, the territorial authority is liable to pay the levies in respect of those water services delivered in that district.

However, if a water organisation is the drinking water supplier, wastewater network operator, or stormwater network operator, the water organisation is liable to pay the levy in respect of the water services delivered by the water organisation in that district.

Despite subclause (2), a territorial authority and a water organisation may agree that the territorial authority will pay the levy.

The Chatham Islands Council is not liable to pay levies under these regulations.

The liable entity must pay levies to the Water Services Authority on a quarterly basis in advance.

Levies must be paid by the last day of the month preceding the quarterly payment period.

The Water Services Authority must issue invoices for the quarterly periods ending on the following dates each year:

The Water Services Authority must issue invoices by the tenth day of the month preceding the quarterly payment period.

If a territorial authority has entered into an agreement with a water organisation under regulation 7(3), the territorial authority must notify the Water Services Authority that the territorial authority will pay the levy to which the agreement relates.

If the Water Services Authority receives a notification under subclause (3), invoices for the levy must be issued to the territorial authority.

The levies are exclusive of any GST.

The chief executive may grant a waiver or refund of levies, in whole or in part, in any particular case or class of case to which 1 or more of the following circumstances apply:

If the Water Services Authority decides to waive levies, in whole or in part, it must publish the decision, and its reasons for the decision (including why the waiver is appropriate), on an internet site maintained by or on behalf of the Water Services Authority.

The chief executive must impose a penalty on any levy, or any portion of a levy, that is not paid on or before the date specified in regulation 9(2).

However, subclause (1) is subject to regulation 12.

The amount of a penalty imposed under subclause (1) is 5% of the amount that is late.

A penalty under this regulation is added to the levy that is late, and must be treated as if it were a part of the levy.

The Minister must, on the advice of the Water Services Authority, review the levies payable under these regulations.

The Minister must consider the following at each review:

Before making any changes to the total amount of levies, the prescribed percentage split, or the design of the levies, the Minister must consult with any territorial authorities and water organisations who may be affected by the proposed changes.

Once the review is complete, the levies may be fixed for the following 1, 2, or 3 financial years.

The Minister must complete the first review by 30 June 2028.

The Minister must start subsequent reviews—

However, the frequency of subsequent reviews must match the period for which levies are fixed under regulation 13(4).

For the purposes of regulation 6(1)(a), the total amount of levies payable in respect of water services is $20,658,000 per annum for each of the following financial years:

For the purposes of regulation 6(1)(c), the percentage split of the levies across the water services for the 2026, 2027, and 2028 financial years is as follows: