127Duty to ensure communities have access to drinking water if existing suppliers facing significant problems

1. Subsection (2) applies if—

2. a territorial authority’s or Taumata Arowai’s assessment of a drinking water supply is that the supplier (not being the territorial authority) is facing a significant problem or potential problem with any of its drinking water services, and the territorial authority has notified Taumata Arowai of those concerns and discussed them with Taumata Arowai; or
3. Taumata Arowai requires the territorial authority to take action under subsection (2).

4. If this subsection applies, a territorial authority must—

5. work collaboratively with the supplier, the consumers of the supply, and Taumata Arowai to identify, as the circumstances allow and within a time frame determined by Taumata Arowai, 1 or more of the following:
   1. an immediate solution to the problem:
   2. a temporary solution to the problem:
   3. a long-term, permanent solution to the problem; and
6. ensure that drinking water is provided to the affected consumers, on a temporary or permanent basis, if—
   1. the supplier is unable to continue to provide a service that meets the statutory requirements; and
   2. an alternative solution is not readily available, or cannot be agreed by the parties involved within the time frame determined by Taumata Arowai.

7. For the purposes of this section,—

8. a significant problem or potential problem includes where—
   1. a drinking water supplier has persistently failed to comply with legislative requirements; or
   2. there is a serious risk to public health relating to the drinking water services provided by a drinking water supplier; or
   3. a drinking water supplier has ceased to operate a drinking water service, or is, in Taumata Arowai’s opinion, at significant risk of ceasing to operate a service:
9. if a territorial authority is obliged to ensure access to drinking water, the territorial authority may consider a range of options to fulfil its obligation, including—
   1. taking over the management and operations of the drinking water service, on a temporary or permanent basis:
   2. ensuring drinking water continues to be provided through alternative supply arrangements:
10. nothing in paragraph (b) obliges a territorial authority to provide the supply via a reticulated network:
11. if a territorial authority takes over the management and operations of a drinking water service on a permanent basis, the territorial authority, Taumata Arowai, the former supplier, and (if relevant) the affected consumers must work together to determine how to deal with—
    1. any assets and liabilities that may relate to the service; and
    2. any legal or other issues that may affect the territorial authority’s ability to manage and operate the service, such as access to the land on, or beneath which, assets are situated; and
    3. how the territorial authority might be compensated for the costs incurred in taking over responsibility for the service:
12. a territorial authority may charge for any drinking water services that are provided to affected consumers, and may recover its costs from the previous supplier, but, when making decisions about future charges and funding arrangements, the territorial authority must—
    1. take reasonable steps to ascertain and consider the financial circumstances facing the affected consumers; and
    2. consider the range of funding sources provided for in its revenue and financing policy, including the potential use of general rates; and
    3. on request, demonstrate that it has considered those factors.

13. See also subpart 12 of Part 2 of the Water Services Act 2021 (statutory management and transfer of operations).

Notes

• Section 127: inserted, on 15 November 2021, by section 208 of the Water Services Act 2021 (2021 No 36).