Have your say on a proposed levy to fund a new economic regulation regime for New Zealand’s water services

The Commerce Commission will oversee this regime and will have a range of regulatory tools, including mandatory information disclosure, to promote transparency and ensure investments are made where they are needed most. The Commission’s role will be critical to safeguarding consumer interests and will provide peace of mind to Kiwis that we are getting value for money from our water services.

The proposed levy has been designed to recover the cost of the economic regulation regime and ensure the Commission is funded appropriately to do this important work. It is estimated that the levy will cost $1.30 per person and per year in 2025/26 and 2026/27.

The relatively modest cost of this regulation ultimately falls to those who benefit from it – water services consumers. It will be up to regulated water services suppliers to determine how best to recover the levy costs from consumers, for example through rates or water charges, and how to best ensure these costs are recorded (such as including levy charges as an explicit line in rates bills).

MBIE is asking for feedback from interested parties on the design of the levy and how it could be improved to ensure it is fair, efficient, justifiable and transparent.

At the same time, the Water Services Authority – Taumata Arowai is seeking feedback on a proposed levy to fund its work regulating drinking water suppliers for safety and quality and overseeing the environmental performance of stormwater and wastewater networks. Questions on the Water Services Authority – Taumata Arowai levy and consultation can be sent to them directly.

This is part of Local Water Done Well, the Government’s plan for financially sustainable, locally delivered water infrastructure and services.

MBIE’s consultation is available on our website and will be open for feedback from 26 November 2024 – 24 January 2025.

Have your say: Seeking feedback on a proposed levy to recover Commerce Commission costs of regulating water services

Water Services Authority – Taumata Arowai’s consultation is available on its website and is also open from 26 November 2024 – 24 January 2025.

Consultation on Water Services Authority – Taumata Arowai levy for 2025 - 2028(external link)  — Taumata Arowai