Economic Regulation of Water Services – Crown Monitor
As Crown monitor, we monitor Watercare, Auckland’s water supply and wastewater service provider.
In September 2024, the Minister of Local Government appointed the Commerce Commission to act as the Crown monitor to Auckland’s water supply and wastewater service provider, Watercare. Our role is to monitor and report on Watercare’s performance as set out in the Watercare Charter. Our formal role officially began 1 April 2025 and will continue until the end of interim economic regulation under the Charter in mid-2028. Enduring price-quality regulation will apply after that, alongside information disclosure regulation.
Under the Charter, Watercare must:
- Regularly report on certain aspects of its performance, including investment delivery and how it performs against performance minimum service quality standards and other targets.
- Develop plans on how to improve its delivery, asset management practices, and its operational cost efficiency to ensure better value for money for Aucklanders.
In its business plan, Watercare has committed to updating its pricing approach to ensure that the costs for growth are better balanced and, that growth pays for growth.
In 2026, Watercare will consult on proposed change to its infrastructure growth charges (IGCs). These are paid by developers by developers to help pay for large infrastructure upgrades such as treatment plants, large pump stations and transmission pipes. The consultation will follow feedback from the Crown Monitor on Watercare’s initial plan.
The Commission’s role is to monitor Watercare’s performance and to investigate and take enforcement action if Watercare is non-compliant with the requirements of the Charter.
The Crown monitor role is targeted and specific to Watercare. It is separate from the various programmes of work the Commerce Commission is currently providing to support the development of long-term regulation for water services in New Zealand as part of the Government's LWDW regime. It is also separate to the Commission’s regulatory role for Wellington Water (foundational information disclosure).
Letter of Expectations from the Crown monitor to Watercare
Our letter of expectations sets out:
- how we will monitor and report on Watercare’s performance during the Charter period,
- our ability to investigate and take enforcement action if Watercare is non-compliant with the requirements of the Charter, and
- what Watercare can expect from our engagement.
We publish Crown monitor deliverables required under the Watercare Charter, including annual reports on Watercare’s performance. In addition to these formal deliverables, we may also share other updates and information that could be of interest to stakeholders and the wider public.