Environment Minister Nick Smith’s announcement all water-users taking more than 5 litres a second will have to meter their water by 2016 is not only fundamental to progressing rational water allocation, but it is the clearest sign yet the value of water consents will be monetised to the greatest possible extent. While national prices for water are unlikely to be established, the ability to establish accurate water takes and, therefore, valuations for alternative uses will become possible on a catchment by catchment basis with water metering in place.

The new regime, involving regulating new nationwide compliance under section 360(1)(d) of the RMA is coming in three parts: Existing water takes of 20 litres per second or more must comply by 2012 (assuming 2010 gazettal), covering around 92% of existing water consents; Takes over 10l per sec compliant by 2014; Takes over 5l per sec complaint by 2016.

- - -NOT A SUBSCRIBER? - - - - - - - - - - - - - - - - - - - - - - - - - - -

NZ’S LEADING INFORMATION SOURCE FOR ANALYSIS AND INTERPRETATION OF THE CRUCIAL ENERGY AND ENVIRONMENT ISSUES AHEAD.

NEW ZEALAND ENERGY & ENVIRONMENT BUSINESS WEEK
Powerful and up-to-date, it covers Emissions Trading Scheme, Climate Change & Carbon Trading, the Resource Management Act, the Kyoto Protocol, Energy Supply Security, Electricity Generation, Renewable Energy, Oil & Gas Exploration, Energy Efficiency, Water Management, Sustainability. Covers policy announcements, draft legislation, amendments to Acts and regulations. Also includes NZ Energy & Environment Weekly Digest. Published every Tuesday. 46 issues per year.

http://nzenergy-environment.co.nz/home/special-introductory-offer
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

The decisions are notable for including a high quality regulatory impact statement, where many recent initiatives - including the watered down ETS legislation - have failed to score pass marks from the Treasury’s regulary impact assessment unit, often on the basis of inadequate information. In this case, the RIS says “allocative efficiency gains in water-constrained catchments need to be approximately 2% for quantified benefits to outweigh costs” and 5 to 10% gains are anticipated with the metering changes, including a $3.3m saving for regional councils. At 5% efficiency gains, the benefits are calculated at $101m, while costs of $41m are forecast. Almost all those costs will be borne by the farmers, food processors, municipalities and other major water users covered by the new regime. The main risks identified are lack of meters or installers. Without the move, it could take 20 to 25 years to achieve widespread accurate and consistent water measurement.

Environment Minister Nick Smith reckons only 31% of water taken nationally is currently metered, making it impossible even to begin rationally managing what is becoming a crucial, but increasingly heavily used, source of competitive advantage for the NZ economy, currently worth more than $5bn a year. National regulations are quicker and better than putting decisions in the hands of regional councils, Smith says and the decision follows extensive consultation. Further water policy will await the report back of the Land and Water Forum in July, said Smith, although de facto new policy will develop as the commissioners replacing Environment Canterbury get to work.

Meanwhile, Agriculture Minister David Carter reiterated his commitment at an irrigation conference last week to improving water storage, allocation, distribution and use, but stressed it would only occur if the Govt succeeded in “taking people with us.” Some 200 protesters turned out last Friday in Christchurch for a hastily organised protest by a new umbrella group, “Our Water, Our Vote,” outside the annual Jenny Shipley Lecture, where Smith announced metering for major users.

 Copyright © Media Information Ltd
NZ Energy & Environment Business Week