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Commerce Act 1986

Regulated goods or services - Water services - Additional matters

57U: Commission may grant exemption to local authority

You could also call this:

"The Commission can let a local council off some rules if it's fair and reasonable."

Illustration for Commerce Act 1986

The Commission can decide to exempt a local authority from following certain rules in the Commerce Act. You might wonder why they would do this - it's because the Commission thinks the costs of following the rules outweigh the benefits. The Commission must also make sure the exemption is not too broad and only addresses the specific issues that led to the exemption.

The Commission can make this decision after a local authority asks them to, or they can do it on their own. They can grant the exemption with certain conditions that they think are suitable. When they make a decision, they must explain why they made it and publish their reasons along with the decision.

The Commission's decision can last for up to 20 years, after which it will automatically be cancelled unless it's cancelled sooner. This type of decision is called secondary legislation - you can learn more about what this means by looking at Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1505991.

Topics:
Business > Fair tradingMoney and consumer rights > Consumer protectionGovernment and voting > Local councils
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"The Commission doesn't check if drinking water is safe."

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57V: Additional matters relating to regulation of water services, or

"Extra rules about water services are explained in a special part of the law"

Part 4Regulated goods or services
Water services: Additional matters

57UCommission may grant exemption to local authority

  1. The Commission may make a determination that exempts a local authority from compliance with any provision or provisions of this subpart in respect of 1 or more water services if the Commission is satisfied that—

  2. the costs of complying with the provision or provisions outweigh the benefits; and
    1. the extent of the exemption is not broader than is reasonably necessary to address the matters that gave rise to the exemption.

      1. The Commission may make the determination after receiving an application from a local authority or on its own initiative.

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

      3. The Commission’s reasons for making the determination (including why the exemption is appropriate) must be published together with the determination.

      4. A determination made under this section may continue in force for not more than 20 years (and at the close of the date that is 20 years after the determination first comes into force, the determination must be treated as having been revoked unless it is sooner revoked).

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

      Notes
      • Section 57U: inserted, on , by section 14 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).