In this Part,—

This section is intended only as a guide to the general scheme and effect of this Part.

The purpose of this Part is to promote the long-term benefit of consumers of water infrastructure services in markets where there is little or no competition, and little or no likelihood of a substantial increase in competition, by promoting outcomes that are consistent with outcomes produced in competitive markets so that regulated water services providers—

In this Part, unless the context otherwise requires,—

Water infrastructure services are regulated as provided for by this Part.

A regulated water services provider must, in respect of the water infrastructure services it supplies, comply with—

The Commission may exercise any of its powers under this Act for the purpose of monitoring compliance by regulated water services providers with regulation under this Part.

The Commission must make determinations under this section specifying how 1 or more of the following apply to regulated water services providers:

A determination must—

It is not necessary for a single determination to address all matters relating to all water infrastructure services, or to a regulated water services provider, and different parts of any determination may come into effect at different times.

A determination made under this section may require a regulated water services provider to comply with the requirements set out in any other determination that has been made under this section in respect of water infrastructure services.

A determination made under this section may relate to all regulated water services providers or to 1 or more regulated water services providers (for example, a determination relating to price-quality regulation may apply to an individual regulated water services provider and set price-quality paths that are specific to that provider).

A determination made under this section relating only to information disclosure or quality regulation may last for more than 1 regulatory period and remains in force until it is revoked.

A determination under this section and an amendment to a determination are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

As soon as practicable after making a determination under this section, the Commission must give to each regulated water services provider to whom the determination relates notice of the determination and where it is available.

The Commission must consult interested parties before amending or revoking a section 15 determination.

However, the Commission may amend a section 15 determination without complying with subsection (1) if the Commission is satisfied that the amendment is non-material.

As soon as practicable after making an amendment, the Commission must give to each regulated water services provider to which the determination relates notice of the amendment and where it is available.

The Commission may, on application, exempt any person or class of persons, in respect of any information or class of information that the Commission considers to be commercially sensitive, from any obligation to make that information publicly available as part of the requirements of information disclosure regulation, quality regulation, or price-quality regulation.

The Commission may only grant an exemption under this section if the Commission is satisfied that doing so would be consistent with the purpose of this Part.

The Commission may grant the exemption on any terms and conditions that it thinks fit.

The Commission’s reasons for granting an exemption must be published together with the exemption.

An exemption granted under this section, and any variation or revocation of it, is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The Commission must determine initial input methodologies relating to information disclosure and price-quality regulation of water infrastructure services (and covering the matters referred to in section 26(1)),—

In relation to a water services entity that is designated under section 52, the Commission may, at any time after the entity is designated, do 1 or both of the following:

The Commission is not required to comply with section 27 for the purposes of applying an existing input methodology to a designated entity under subsection (2)(b).

The Commission may, in respect of a regulated water services provider (or a class of regulated water services providers), determine initial input methodologies relating to quality regulation of water infrastructure services (and covering the matters referred to in section 26(1)), at any time after the initial input methodologies relating to that provider or those providers (and referred to in subsection (1) or (2)) are determined.

The Commission must make initial determinations under section 15 relating to information disclosure and quality regulation,—

The Commission must make initial determinations under section 15 relating to price-quality regulation,—

An initial section 15 determination must not impose obligations on a regulated water services provider any earlier than the following dates:

The Commission must consult interested parties before making an initial section 15 determination.

The first regulatory period lasts for a period of 3 years and starts,—

The duration of subsequent periods must be determined by the Commission and must be no longer than 6 years.

In determining the duration of subsequent periods, the Commission may set different periods for different regulated water services providers as the Commission sees fit.

The Commission must notify the duration of each new regulatory period in a section 15 determination, and must specify whether the period is common to all regulated water services providers or specific to 1 or more providers.

The Governor-General may, by Order in Council, do any 1 or more of the following:

However,—

An Order in Council made under this section—

In making a recommendation that a date be deferred under section 21, the Minister must—

The Minister may make a recommendation that a date be advanced under section 21(1)(c) or (d) only—

The purpose of input methodologies is to promote certainty for regulated water services providers and consumers in relation to the rules, requirements, and processes applying to the regulation, or proposed regulation, of water infrastructure services under this Part.

The Commission—

This section does not affect clause 3(2)(a) of Schedule 1.

An input methodology relating to the supply of water infrastructure services must be applied—

However, subsection (1)(c) does not apply in relation to an initial determination made by the Commission relating to information disclosure regulation, if the initial determination is made (in accordance with section 19(1)) before the initial input methodologies have been determined (in accordance with section 18(1)).

The input methodologies relating to water infrastructure services must include, to the extent applicable to the type of regulation under consideration,—

Every input methodology must, as far as is reasonably practicable,—

In determining an input methodology, the Commission may have regard to the scale, complexity, and risk profile of each regulated water services provider (or a class of regulated water services providers) in respect of which the methodology will apply (for example, by specifying the matters referred to in subsection (1) in a greater or lesser level of detail).

An input methodology may relate to all regulated water services providers or to a class of regulated water services providers or to 1 or more regulated water services providers.

To avoid doubt, the Commission may determine further input methodologies relating to a type of regulation under this Part covering matters other than the matters referred to subsection (1) if the Commission considers it necessary or desirable in order to achieve the purpose of this Part (for example, input methodologies that set out pricing methodologies or that relate to measures of the quality of water infrastructure services).

If the Commission determines further input methodologies of the type referred to in subsection (5), every such input methodology must be set out in sufficient detail so that each regulated water services provider is reasonably able to estimate the material effects of the methodology on the provider.

If the Commission determines an input methodology that is not specified in a section 15 determination, the Commission must ensure that the input methodology—

When the Commission begins work on an input methodology, it must give public notice of its intention to do so that—

During the course of its work on an input methodology, the Commission must give public notice of the draft methodology and consult interested parties before finalising the methodology.

See clause 2 of Schedule 1.

The following are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements):

Secondary legislation referred to in subsection (1) must be published under the Legislation Act 2019,—

If an input methodology or amendment is made by the High Court on appeal, the Legislation Act 2019 applies as if the Commission were the maker of the secondary legislation.

When a methodology or an amendment (but not a revocation) is published, the Commission must publish the reasons for determining the methodology, or for amending it, on the Commission’s Internet site.

If the Commission proposes to amend or revoke an input methodology, section 27 applies with any necessary modifications, as if the amendment or revocation were a new input methodology.

However, the Commission may amend an input methodology without complying with section 27 if the Commission is satisfied that the amendment is non-material.

The Commission must review each input methodology no later than 7 years after its date of publication and, after that, at intervals of no more than 7 years.

The date of publication of an input methodology is the date on which it is published under the Legislation Act 2019.

Section 27 applies, with any necessary modifications, as if the review were a new input methodology.

See also section 28.

If satisfied that a regulated water services provider has failed to comply with a requirement in a relevant input methodology, the Commission may, by written notice, direct the provider to comply with the relevant requirement.

In this section, a relevant input methodology means an input methodology that is not specified in a section 15 determination (see section 25(1)(b)).

A regulated water services provider that receives a direction from the Commission under section 31 must comply with it.

The purpose of information disclosure regulation is to ensure that sufficient information is readily available to interested persons to assess whether the purpose of this Part is being met.

A regulated water services provider to which a section 15 determination relating to information disclosure regulation applies must—

The Commission—

To avoid doubt, the Commission may, as part of a summary and an analysis, include an analysis of how effective the information disclosure requirements imposed on regulated water services providers are in promoting the purpose in section 12.

In complying with subsection (2)(b), the Commission must ensure that satisfactory provision exists to protect the confidentiality of any information that may reasonably be regarded as confidential or commercially sensitive.

A section 15 determination relating to information disclosure regulation must specify the following:

In making a section 15 determination relating to information disclosure regulation, the Commission may have regard to the scale, complexity, and risk profile of each regulated water services provider (or a class of regulated water services providers) in respect of which the determination will apply (for example, by requiring more or less information to be disclosed).

Information required to be disclosed may include (without limitation) 1 or more of the following:

In addition, in relation to a statutory water services entity, information required to be disclosed must include information about how the entity is fulfilling its objective to support and enable planning processes, growth, and housing and urban development and, in particular, the entity’s level of responsiveness in relation to those issues (see section 12(d) of the Water Services Entities Act 2022).

The section 15 determination may do 1 or more of the following:

If a section 15 determination authorises a person to grant exemptions referred to in subsection (5)(d),—

The Commission must consult interested parties before making a section 15 determination relating to water infrastructure services that are subject to information disclosure regulation.

The purpose of this section is to enable the Commission to monitor—

A section 15 determination may require information referred to in subsection (3) to be disclosed only to the extent required to enable the Commission to monitor 1 or both of the matters referred to in subsection (1).

If a regulated water services provider provides goods or services that are not subject to regulation under this Part (other goods or services), the provider may be required to disclose—

This section overrides any other provision of this Part.

A person who is required, by a section 15 determination, to provide copies of statements and information to the public on request may charge for providing those copies.

The charge must be no more than is reasonably required to recover the costs of providing those copies.

The purpose of quality regulation is to regulate the quality and performance (other than in relation to prices) of water infrastructure services provided by regulated water services providers.

A regulated water services provider to which a section 15 determination relating to quality regulation applies must apply the quality paths set by the Commission in the determination in respect of all water infrastructure services that are—

For the purpose of monitoring compliance with this section, the Commission may, in addition to exercising its powers under section 98 of the Commerce Act 1986, issue a written notice to a regulated water services provider requiring it to provide any or all of the following:

A section 15 determination relating to quality regulation must specify the quality paths that apply to each regulated water services provider to which the determination applies.

A quality path must specify the following:

In specifying a quality path, the Commission may have regard to the scale, complexity, and risk profile of each regulated water services provider (or a class of regulated water services providers) in respect of which it will apply, for example, by doing either or both of the following:

A quality path may include—

Quality standards, incentives, and performance requirements may be set or imposed only in respect of services that are subject to regulation under this Part.

A requirement to ring-fence revenue (as referred to in subsection (4)(b)(vii)) may include a requirement not to spend the relevant funds without the approval of the Commission.

Quality standards may be prescribed in any way the Commission considers appropriate (such as targets, bands, formulas, or timetables for responsiveness to consumers).

A quality path does not apply to a regulated water services provider until the date specified in the relevant section 15 determination.

The Commission must consult interested parties before making a section 15 determination relating to water infrastructure services that are subject to quality regulation.

The purpose of price-quality regulation is to regulate the price, quality, and performance of water infrastructure services provided by regulated water services providers.

A regulated water services provider to which a section 15 determination relating to price-quality regulation applies must apply the price-quality paths set by the Commission in the determination in respect of all water infrastructure services that are—

For the purpose of monitoring compliance with this section, the Commission may, in addition to exercising its powers under section 98 of the Commerce Act 1986, issue a written notice to a regulated water services provider requiring it to provide any or all of the following:

A section 15 determination relating to price-quality regulation must specify the price-quality paths that apply to each regulated water services provider to which the determination applies.

A price-quality path must specify the following:

In specifying a price-quality path, the Commission may have regard to the scale, complexity, and risk profile of each regulated water services provider (or a class of regulated water services providers) in respect of which it will apply, for example, by doing any 1 or more of the following:

A price-quality path may include—

Quality standards, incentives, and performance requirements may be set or imposed only in respect of services that are subject to regulation under this Part.

A requirement to ring-fence revenue (as referred to in subsection (4)(b)(vii)) may include a requirement not to spend the relevant funds without the approval of the Commission.

Quality standards may be prescribed in any way the Commission considers appropriate (such as targets, bands, formulas, or timetables for responsiveness to consumers).

A price-quality path does not apply to a regulated water services provider until the date specified in the relevant section 15 determination.

This section applies when the Commission specifies, in the price-quality paths for a regulatory period, the maximum revenues that a regulated water services provider may recover.

The Commission may, in calculating the maximum revenues, apply a wash-up mechanism that provides for any over-recovery or under-recovery of revenue by the regulated water services provider during the previous regulatory period (if applicable) to be applied in a manner that is equivalent in present-value terms (as calculated in the manner that the Commission thinks fit) over 1 or more future regulatory periods.

This section applies when the Commission specifies maximum prices or maximum revenues for the purpose of section 43(2)(b).

The Commission may calculate the maximum price or revenue in a manner that is equivalent in present value terms (as calculated in the manner that the Commission thinks fit) over 2 or more regulatory periods (for example, by altering depreciation) if, in the Commission’s opinion, it is necessary or desirable to do so to provide for the financeability of a regulated water services provider or to minimise price shocks to consumers.

Before the end of each regulatory period for a regulated water services provider (or a class of regulated water services providers), the Commission must make a new section 15 determination specifying the price-quality paths that will apply for the following regulatory period in respect of that provider (or those providers).

However, subsection (1)—

In making a new section 15 determination, the Commission must consult interested parties in relation to the requirements listed in section 43.

The Commission must not reopen a price-quality path within a regulatory period on the grounds of a change in an input methodology, except as provided in subsection (2).

The Commission must reopen a price-quality path, and make a new price-quality path by amending the relevant section 15 determination in accordance with section 16, if—

The Commission must review any funding and pricing plan and tariff list made publicly available by the chief executive or the board of a regulated water services provider under any legislation dealing with water services.

In carrying out a review, the Commission must consider the following:

The Commission must complete its review and give directions under section 49 (if any) as soon as practicable after a funding and pricing plan or tariff list (as the case may be) is made publicly available.

The Commission may on its own initiative carry out further reviews of any funding and pricing plan or tariff list and give new or amended directions (if any) under section 49 as a consequence, at any time after it completes its first review under this section.

This section and section 49 do not apply in respect of an initial funding and pricing plan prepared in accordance with Schedule 1 of the Water Services Entities Act 2022.

If the Commission considers that a funding and pricing plan or tariff list is inconsistent with any of the things described in section 48(2), the Commission may direct the board of a regulated water services provider to do either or both of the following:

A board of a regulated water services provider that receives a direction from the Commission under section 49 must comply with it.

This subpart—

In each case, the process for making, amending, or revoking a designation order requires a review to be carried out by the Commission under subpart 3 of Part 5.

This section is intended only as a guide to the general scheme and effect of this subpart.

The Governor-General may, on the recommendation of the Minister, make an Order in Council declaring a water services entity that is not a statutory water services entity to be designated for the purposes of this Part.

A designation order is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The Minister may recommend to the Governor-General that a water services entity be designated for the purposes of this Part only if—

See also section 144.

A designation order must specify all of the following:

A designation order continues in force until the date on which the order is revoked or replaced, whichever occurs first.

If a water services entity ceases to be designated for the purposes of this Part, any of the following that apply to the entity cease to apply to the entity:

A designation order may be amended or revoked using the process in sections 52 to 54, which apply with any necessary modifications.

However, section 53 does not apply to an order amending a designation order if the Minister is satisfied that the amendment is non-material.

To avoid doubt, an amendment to a designation order may be directed at (without limitation)—

In this Part,—

This section is intended only as a guide to the general scheme and effect of this Part.

The purpose of this Part is to provide for consumer protection, and improvements in the quality of service provided to consumers to reflect consumer demands, by regulated water services providers and drinking water suppliers.

In this Part, unless the context otherwise requires,—

This subpart—

In each case, the process for making, amending, or revoking a designation order requires a review to be carried out by the Commission under subpart 3 of Part 5.

This section is intended only as a guide to the general scheme and effect of this subpart.

The Governor-General may, on the recommendation of the Minister, make an Order in Council declaring a water services entity that is not a statutory water services entity to be designated for the purposes of this Part.

A designation order made under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The Minister may recommend to the Governor-General that a water services entity be designated for the purposes of this Part only if—

See also section 152.

A designation order must specify all of the following:

A designation order continues in force until the date on which the order is revoked or replaced, whichever occurs first.

If a water services entity ceases to be designated for the purposes of this Part, any requirements of this Part that apply to the entity (whether under the service quality code or otherwise) cease to apply to the entity.

A designation order may be amended or revoked using the process in sections 61 to 63, which apply with any necessary modifications.

However, section 62 does not apply to an order amending a designation order if the Minister is satisfied that the amendment is non-material.

To avoid doubt, an amendment to a designation order may be directed at (without limitation)—

The Commission must, not later than 1 July 2027, make a service quality code in relation to the provision of 1 or more types of water infrastructure service by regulated water services providers.

The service quality code is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

The service quality code must—

The service quality code may (without limitation) do 1 or more of the following:

Regulated water services providers must comply with the provisions of the service quality code.

In order to make the service quality code, the Commission must—

A person is entitled to make a submission to the Commission not later than 30 working days after the date on which public notice of the draft code is given.

The Commission must—

The Commission may make the code only if the Commission is satisfied that the draft code meets all the requirements set out in this subpart.

The Commission may amend or revoke and replace a code if the Commission considers that the code should be changed to better promote the purpose of this Part.

The same procedure that applies to making a code in subsections (1) to (4) must be followed to make an amendment or a revocation and replacement, with any necessary modifications, except that subsections (1) to (4) do not apply if the Commission is satisfied that an amendment is non-material.

A regulated water services provider or drinking water supplier must, in accordance with regulations (if any) that apply to the provider or supplier,—

A regulated water services provider or drinking water supplier must ensure that complaints by consumers are dealt with—

Regulations referred to in this section may make different provisions for—

A consumer who is not satisfied with the outcome of a complaint dealt with using a consumer complaints process under this subpart may, in the form approved by the service provider, request the service provider for the consumer dispute resolution service to provide dispute resolution services.

The service provider may, at its discretion, decide to take no action or, as the case may require, no further action on any complaint if the provider is satisfied on reasonable grounds that—

The Commission must—

The consumer dispute resolution service for the resolution of disputes is the dispute resolution service—

There must only be 1 consumer dispute resolution service for all of New Zealand unless subsection (3) applies.

There may be 2 or more approved consumer dispute resolution services, at any one time, if 1 or more of the following apply:

Before approving a dispute resolution service under Schedule 2, the Minister must consult—

This section applies if a dispute arising from an unresolved complaint is referred by a consumer to the consumer dispute resolution service and a determination is made on the dispute under the rules of the service.

The determination is binding on the relevant regulated water services provider or drinking water supplier, as the case requires, unless the consumer, regulated water services provider, or drinking water supplier lodges an application under section 75 to set aside the determination and the court modifies or reverses the determination.

A consumer or a regulated water services provider or a drinking water supplier may, within the time allowed under section 76(1), apply to the court to set aside any determination referred to in section 74.

The court may modify or reverse the determination that is the subject of the application if the court is satisfied that the terms of the determination are manifestly unreasonable but otherwise must confirm the determination.

The decision of the court on the application is binding on all persons named as parties in the determination, and there is no right of appeal against the court’s decision.

An application under section 75 must be brought and determined in accordance with the rules of court, except that—

The court may hear all evidence provided and representations made by or on behalf of any party to the application that the court considers relevant to the application, whether or not the evidence would otherwise be admissible in a court.

Each party to a dispute that is referred to the consumer dispute resolution service must comply with the rules of the service.

On an application by the service provider, the court may require a person who is a party to a dispute to do either of the following:

If the court is satisfied that the terms of a binding settlement are manifestly unreasonable, the court’s order under subsection (2)(b) may modify the terms of the binding settlement but only to the extent that the modification results in a binding settlement that could have been made by the consumer dispute resolution service.

If an order requiring a regulated water services provider, drinking water supplier, or other person to comply with a binding settlement includes a requirement that the person pay an amount of money to a person, that order (or part of the order) may be enforced as if it were a judgment by the court for the payment of a sum of money.

The Commission must review the consumer dispute resolution service, using the process and in accordance with the timetable set out in Schedule 2.

For the purpose of monitoring compliance with a provision of this Part or Schedule 2 or each development code (as provided for in sections 292 to 296 and 299 of the Water Services Entities Act 2022), the Commission may, in addition to exercising its powers under section 98 of the Commerce Act 1986, issue a written notice to a regulated water services provider or drinking water supplier requiring it to provide any or all of the following:

The Commission may direct—