Local Government (Water Services Preliminary Arrangements) Act 2024

Watercare Services Limited

70: Purposes of this Part

You could also call this:

"What this part of the law is for: helping Watercare give you good water services at a low cost."

This part of the law is about Watercare Services Limited. You want to know what it is for. It is to help people who use water services get good services. It also makes sure Watercare works well and keeps costs low.

This law helps Watercare work like a company in a competitive market. You want Watercare to innovate and improve its services. It should provide good quality water services and share any efficiency gains with consumers.

This part of the law is connected to a specific purpose of the Local Government Act, which you can read about in section 3(2)(e). It helps make sure Watercare works efficiently and keeps costs low. You benefit from this when you use water services.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS973689.


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69: Repeal of section 68, or

"A part of the law will automatically stop being a law after 5 years."


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71: Application of this Part, or

"When Watercare has few competitors for water services, this part of the law applies."

Part 4Watercare Services Limited

70Purposes of this Part

  1. The purposes of this Part are—

  2. to promote the long-term benefit of consumers of water services provided by Watercare; and
    1. to ensure that sufficient information is readily available to interested persons to assess whether the purpose in paragraph (a) is being met; and
      1. to ensure that Watercare manages its operations efficiently with a view to keeping the overall costs of delivering water services at the minimum levels consistent with the effective conduct of its undertakings and the maintenance of the long-term integrity of its assets.
        1. This Part achieves the purposes by promoting outcomes that are consistent with outcomes produced in competitive markets such that Watercare—

        2. has incentives to—
          1. innovate and to invest in water services, including in replacement, upgraded, and new assets; and
            1. improve efficiency in providing water services; and
              1. provide water services at a quality that reflects consumer demands; and
              2. shares with consumers the benefits of efficiency gains in supplying water services, including through lower prices; and
                1. is limited in its ability to extract excessive profits.
                  1. This Part relates only to delivering the purpose of this Act under section 3(2)(e).