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Local Government (Water Services Preliminary Arrangements) Act 2024

Watercare Services Limited - Part 2 of Watercare charter

83: Content of Part 2 of Watercare charter

You could also call this:

"What Watercare must do and how it will be checked to ensure good water services for you."

A price-quality path for Watercare must include some important details. You need to know what period of time it covers, which can be up to 5 years. It must also include things like the prices Watercare can charge, the revenue it can recover, or the service quality standards it must meet.

A price-quality path can also include incentives to help Watercare do a better job. This means Watercare might get rewards if it does well, or penalties if it does not meet the standards. These incentives can be based on things like whether Watercare meets its service quality standards or performance targets.

A price-quality path can also include performance requirements, such as how Watercare manages risks, looks after its assets, or makes investments. You might be interested to know that it can also include requirements for Watercare to provide information, consult with others, or adopt certain policies and practices. Additionally, it can include reporting requirements, such as who Watercare must report to, when it must report, and what information it must include in its reports.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS964550.

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"How the Secretary checks and finalises Watercare's business plan"

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84: Effect of charter, or

"What the Watercare charter means and how it affects Watercare's rules and decisions."

Part 4Watercare Services Limited
Part 2 of Watercare charter

83Content of Part 2 of Watercare charter

  1. A price-quality path for Watercare contained in Part 2 of a Watercare charter (a price-quality path) must include 1 or more of the following:

  2. the period to which it applies (which must not be more than 5 years):
    1. the minimum or maximum price or prices that Watercare may charge:
      1. the minimum or maximum revenue that Watercare may recover:
        1. the minimum service quality standards, performance targets, or financial performance objectives that Watercare must meet.

          1. A price-quality path may include incentives for Watercare to maintain or improve its services.

          2. For the purposes of subsection (2), the incentives may include (without limitation) any of the following:

          3. penalties by way of a reduction in Watercare’s maximum prices or revenues based on whether, or by what amount, Watercare fails to meet the minimum service quality standards, performance targets, or financial performance objectives specified in Part 1 of the Watercare charter:
            1. rewards by way of an increase in Watercare’s maximum prices or revenue based on whether, or by what amount, Watercare meets or exceeds the minimum service quality standards, performance targets, or financial performance objectives specified in Part 1 of the Watercare charter.

              1. A price-quality path may include any of the following performance requirements:

              2. requirements to adopt a particular approach to risk management:
                1. requirements in relation to the condition of assets and remaining asset life:
                  1. requirements to make particular types of investment:
                    1. requirements to provide information about any investments planned for a particular period:
                      1. requirements to consult the Crown monitor about certain kinds of investments and investment decisions:
                        1. requirements to adopt asset management policies and practices:
                          1. requirements to ring-fence minimum amounts of revenue for investment purposes:
                            1. reporting requirements, including—
                              1. to whom reports must be made; and
                                1. the timing of reports; and
                                  1. special reporting requirements in asset management plans, if Watercare fails to meet minimum service quality standards or performance targets; and
                                    1. any other matters relating to reporting, including requirements for additional information:
                                    2. requirements that any disclosed information, or any information from which disclosed information is derived, be verified by statutory declaration or certified (in the form specified by the Secretary) as true and accurate:
                                      1. requirements to undertake cost-benefit analysis before Watercare begins any specified projects:
                                        1. requirements relating to consultation and engagement with consumers:
                                          1. requirements based on comparative benchmarking of efficiency.

                                            1. A requirement to ring-fence revenue (as referred to in subsection (4)(g)) may include a requirement not to spend the relevant funds without the approval of the Crown monitor.