The New Zealand Commerce Commission, acting as the Crown monitor for Watercare, has published a Letter of Expectations to ensure that Watercare meets the needs of Auckland consumers. This letter outlines the performance metrics that will be monitored and the potential enforcement actions that may be taken if Watercare fails to comply.

Commission Chair Dr. John Small emphasized the importance of the Crown monitor's role in ensuring that Aucklanders receive fair pricing and quality services as Watercare embarks on a significant investment program over the next three years. Watercare is required to report on various measures, including asset management practices and investment planning, to provide better value for money.

The Commission will closely monitor Watercare's performance against key service metrics, such as responses to water supply interruptions and wastewater overflows. Dr. Small stated that while compliance with the Watercare Charter is expected, enforcement actions could be initiated if Watercare does not meet its price and quality performance standards.

To maintain consumer confidence, the Commission plans to balance educational efforts with enforcement actions, ranging from compliance advice to potential court proceedings. An annual report on Watercare's performance will be published by the end of the year, which will be shared with Auckland Council and relevant government ministers, as well as made available to the public.

The Government has indicated that the Commerce Commission will serve as the economic regulator for water services under the Local Water Done Well (LWDW) regime. The Commission is currently preparing for the implementation of the Local Government Water Services Bill, which will establish a comprehensive regulatory framework.

In addition to its role with Watercare, the Commerce Commission has also been confirmed as the regulator for Wellington Water, allowing for early economic regulation through foundational information disclosure. This approach aims to enhance transparency and address key performance areas for Wellington Water until a more permanent regulatory system is established.