Commerce Commission Determination of Water Services Information Disclosure
Commerce Commission Determination of Water Services Information Disclosure
Monday 2 March, 2026
The Commerce Commission has made a determination under section 52P of the Commerce Act 1986 that came into force on 27 February 2026. The Water Services Information Disclosure Determination 2026 (“Determination”) applies to Councils and water organisations (as defined in the Local Government (Water Services) Act2025) that provide water supply and wastewater services. As regulated suppliers they are now subject to the information disclosure provisions in the Determination.
The information disclosure provisions now imposed on water service providers already apply to other regulated suppliers. Airports, for example, are subject to disclosure about specific aspects of their services. The intent of the Determination is to help hold regulated suppliers to account and encourage them to keep improving, supporting better planned, better managed and more reliable water services for communities.
For now, stormwater services are not subject to these disclosure requirements, but the Commerce Act allows for that to change in the future.
Comment
Putting water services under the regulatory control of the Commerce Commission under Part 4 of the Commerce Act imposes a real rigor on the transparency and accountability of Councils and water organisations within the Government’s Water Done Well framework. While the effective and efficient management of water services may be expected to include the compilation of most if not all the information required, the information disclosure framework will impose a heavy logistical burden on regulated suppliers.
The requirements imposed by the Determination are discussed below.
Forecast information
A regulated supplier must annually disclose forecast information for a 10-year period relating to –
- Operating expenditure
- Depreciation
- Financing costs
- Capital expenditure
- Investment indicators
- Revenue and funding indicators
- Financing indicators
- Financial sustainability indicators.
Actual information
A regulated supplier must disclose actual information for the past financial year on or before 30 November each year on each of the matters listed above as well as –
- Revenue
- Other income
- IFF levies
- Financing costs
- Impairment of network and non-network assets
- Value of vested assets
- Asset values
- Cost allocation
- Approach to revenue and funding allocation
- Allocation of assets and liabilities
- Changes to entities
- Related party transactions
- Ring-fencing of revenue.
An auditor’s assurance report must be provided with the actual information required to be disclosed, together with a director’s certificate.
Periodic disclosure
Additionally the Determination requires the periodic disclosure of specified information when a water services strategy is adopted; the disclosure of the first and second strategic asset management plan and subsequent disclosure at specified events; the disclosure of an asset management plan every time a water services strategy is adopted; the disclosure of an investment and delivery plan every time a water services strategy is adopted; and annual disclosure of an annual delivery report.
Occasional disclosure
There are yet more occasional disclosure requirements that relate to the transfer of assets, supplier status, the adoption of a new or amended dividends policy, a growth funding policy, detailed information re charges for water services, and IFF levies.
Availability of information
The regulated supplier must provide the information to the Commission and disclose it publicly by making it available free of charge on its website and by inspection during ordinary office hours at its principal office. Information must be held for at least 7 years from the date it was first required to be disclosed.
The usefulness of this information disclosure will be enhanced by the Commerce commission analysing the information supplied to it and publishing on its website clear and accessible insights for communities and shareholders. This will include summaries comparing supplier performance, commentary on sector trends, and insights into financial sustainability and asset management.
Transitional provisions
The timing of the introduction of the information disclosure requirements is set out in Schedule A of the Determination.
The requirement to notify the Commerce Commission of key changes such as becoming a new water organisation, transferring services, or taking over a supply comes into effect immediately. After 30 June 2026 regulated suppliers must publish current charges and policies on dividends and funding growth. The remaining requirements are phased in over 2027 and 2028, with full information disclosure in effect by 31 July 2030.
Enforcement
Contraventions of information disclosure requirements carry substantial penalties. The Commerce Commission may apply to the High Court for an order that any person who has contravened or been involved in the contravention of any information disclosure requirement pays a pecuniary penalty to the Crown. Contravening an information disclosure requirement includes failing to disclose required information, failure to disclose in the form or within the time required, and disclosing information that is false or misleading. The penalty is up to $500,000 for each act or omission in the case of an individual, and up to $5 million in any other case.
To conclude
The new information disclosure framework creates a lot of work for regulated water service suppliers at a time when new service arrangements are being initiated. The penalties for non-compliance are high.
If the experienced team at Tompkins Wake can help, please give one of our experts below a call.
