Watercare Regulation – Infrastructure Growth Charges

The Commerce Commission’s proposed Price-Quality Path (PQP) will determine how Watercare sets prices, recovers infrastructure costs, and funds growth from 2028 onward. It will directly affect Infrastructure Growth Charges (IGCs), development feasibility and housing supply across Auckland. We support the Commission’s introduction of a building-blocks revenue cap model to bring predictability and transparency to Watercare’s pricing.

However, we raised concerns on:  

• Preventing double charging of growth-funded infrastructure through explicit offsets of IGC revenue; 
• Requiring audited ring-fencing and reconciliation of Infrastructure Growth Charges; and 
• Setting cautious, evidence-based quality standards that do not unnecessarily increase development costs.

Watercare is a monopoly provider and therefore strong economic regulation is necessary. However, regulation must balance investment needs with development feasibility and not imposing excess costs on the sector. 

As further guidance emerges ahead of implementation in 2028, our advocacy will remain focused on clarity and protecting growth from unintended cost escalation.