14587 (2025). Tangi Utikere to the Minister of Local Government

14587 (2025). Tangi Utikere to the Minister of Local Government: What specific efficiency improvements does the Minister expect Watercare to achieve under the Charter, and how will these be monitored?

Hon Simon Watts: The Charter is designed to stimulate market competition in a noncompetitive market. Competitive pressure will drive Watercare to identify and operationalise efficiencies across its business. Similar models are used in New Zealand already for electricity distribution, gas transmission and at some airports. More specifically, the revenue cap has been set at a level that will require Watercare to meet its efficiency target of 4 percent per year over a ten-year period. The following reporting obligations required by the Charter will help Watercare identify efficiency improvements and provide transparency to the Crown monitor and the public: - Operating cost efficiency improvement plan (clause 20) - Reports on efficiency progress (clause 21) - Infrastructure delivery and asset management planning and improvement (clause 24, 25)