"Open Mic" Session on NZCC Discussion Paper on ring-fencing regulated water services revenue (Members Only)

UDINZ is holding an online “Open Mic" session on NZCC Discussion Paper on ring-fencing regulated water services revenue  for UDINZ members on 19th May to sense check our thinking and collect member comments and any concerns with what is proposed around the proposal to monitor and enforce ring‑fencing of water revenue under the Local Government (Water Services) Act.

Ring‑fencing is intended to ensure revenue raised for water services is used to operate, maintain, renew and invest in those services — and not diverted to unrelated activities — while still allowing limited dividends where these do not compromise long‑term sustainability.

Key elements of the proposed approach include:

💧Transparency first – compliance monitored primarily through Information Disclosure, with new reporting requirements from February 2026 and first disclosures due by 30 November 2027.
💧Focus on real‑world cash flows – not just accounting separation, but how funds move over time between services.
💧Flexibility on timing – revenue does not need to be spent in the same year it is earned, and temporary inter‑service cash flows may be acceptable where they support liquidity and investment.
💧Graduated enforcement – enhanced disclosure as the default, with formal ring‑fencing determinations only where material risks or consumer harm are identified.

Potential intervention would be targeted and proportionate, aimed at addressing risks such as deferred investment, cross‑subsidisation, non‑cost‑reflective pricing, or weakened financial discipline.

This consultation is an important opportunity to engage on how ring‑fencing is applied in practice, and how transparency and financial discipline can best support long‑term service outcomes for the development sector and communities.

We are in process of preparing a UDINZ submission which is due on 5 June 2026. 

Everyone is familiar, we're sure, with the concept of an "Open Mic" night where comedians rock on up and do their thing. Member perspectives are key to the feedback we're collecting on the proposed changes, so we're issuing an invite to our members asking them to attend this online "open mic" where they can take the virtual stage to share funny, or not so funny, comments on the proposals - might be ways to finesse existing provisions or unintended consequences with what is proposed. We have collated some of the comments we've already received. What are you seeing/hearing?

For those interested in attending who may be feeling a little whakama/shy, please note the registration form also has a series of open fields, with generous word counts, where you can record your concerns in writing without having to "take the stage". Members are also welcome incidentally to just email us on info@udinz.nz with "NZCC Discussion Paper - Open Mic comments" in the heading too.