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Local Government (Water Services) Act 2025

Provision of water services: operational matters - Charges for water services - Penalties for unpaid water services charges

103: Authorisation of penalties

You could also call this:

"What happens if you don't pay your water bill on time: penalties explained"

Illustration for Local Government (Water Services) Act 2025

If you do not pay your water services charges on time, a water organisation can add a penalty to the amount you owe. The water organisation's board must agree to add penalties before the start of the financial year. They must also decide how the penalty is calculated, how often it is added, and when it is added to the amount you owe, for example, each month after the due date.

The penalty cannot be more than a certain amount, which is a percentage of the amount you owe. In the first six months after the due date, the penalty cannot be more than 10% of the amount you owe. After a year, the penalty cannot be more than 21% of the amount you owe. You can find more information about this by looking at the relevant legislation.

The water organisation must follow these rules when adding penalties to unpaid water services charges.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004396.

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102: Water organisation must adopt and publish waiver policy, or

"Water organisations must make a plan for when to reduce or cancel water service charges"

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104: Penalty may be imposed on previous unpaid penalty, or

"You must pay extra if you don't pay your water bill or previous penalties on time."

Part 3Provision of water services: operational matters
Charges for water services: Penalties for unpaid water services charges

103Authorisation of penalties

  1. A water organisation may, by resolution of its board, authorise penalties to be added to water services charges that are not paid by the due date.

  2. A resolution under subsection (1) must—

  3. be made not later than the date on which the water organisation sets the water services charges for the financial year; and
    1. state—
      1. how the penalty is calculated; and
        1. how frequently the penalty may be imposed (for example, monthly or quarterly); and
          1. the date on which the penalty is to be added to the amount of the unpaid charges by reference to the due date (for example, each month after the due date or each quarter after the due date).

          2. A penalty must not exceed,—

          3. in the year after the due date, 21% of the amount of the unpaid water services charge; and
            1. in the first 6 months after the due date, 10% of the amount of the unpaid water services charge.

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