Part 3Provision of water services: operational matters
Charges for water services
89Charges set by new water organisation
This section applies to a water organisation—
- that is setting charges under this subpart for the first time; and
- whose account holders, or intended account holders, include persons who, immediately before the organisation’s establishment, were being rated for water services on the basis of a property’s rateable value.
When this section applies, section 86(6)(b) does not apply.
During the 5 years after the organisation’s establishment, the water organisation may set charges under this section based on a property’s rateable value.
However, during that 5-year period, the organisation’s power to set charges based on a property’s rateable value is subject to the following:
- it must not rely entirely on a property’s rateable value:
- it may use a property’s rateable value and 1 or more other methods (for example, charging fixed amounts or according to water usage) for portions of the charge:
- it must annually adjust its methods of setting charges to decrease its reliance on a property’s rateable value:
- in the final year, it must use methods other than a property’s rateable value for most of the charge:
- by the start of the sixth year, it must use methods other than a property’s rateable value for the whole charge.