Variation to Terms and Provisions for Supply of Water by Opuha Water Limited to Shareholders (Water Supply Terms)
Dear Shareholders
The Management and Board of Opuha Water Limited (OWL) have undertaken a review of the current Water Supply Terms. Following that review, OWL has decided to vary to Water Supply Terms in the form set out in the amended version attached to this notice (and uploaded to OWL’s website) (the Amended Water Supply Terms).
The amendment of the Water Supply Terms have been undertaken pursuant to clause 27 of the Water Supply Terms and OWL has uploaded the Amended Water Supply Terms to the website (link here: Water Supply Term 2025).
This document serves as a notice under clause 27.2 of the Water Supply Terms. The Amended Water Supply Terms will take effect on and from the date that is 20 working days from the date of this notice.
The main changes to the Water Supply Terms can be summarised as follows:
- Water Charges by Direct Debit: Clause 12.6 allows OWL to charge a 5% fee on Charges that are not paid by way of direct debit.
- Term of the Agreement: It is a now a common feature of irrigation companies to require charges to continue until such time as the company’s debt obligations have been satisfied in full. This could apply in a scenario where the company is no longer able to supply water due to an expiry/non-renewal of resource consents or any other reason. Banks and other funds are now often requiring irrigation companies to have this obligation recorded expressly in water user agreements.
In light of that context and to ensure OWL can meet its debt obligations into the future, clause 16.2 has been amended to extend the term of the Water Supply Terms. This would allow OWL to continue to collect charges from shareholders to satisfy debt repayments including (but not limited to) in situations where OWL cannot permanently supply water and/or expiry of OWL’s resource consents. This may apply to the OWL as a whole or in respect of certain scheme areas. It is important to note that clause 16.2 requires OWL to act reasonably and the Board will consider the impact of the Charges arising under clause 16.2 on the Shareholder and whether any such Charges reflect a repayment arrangement to the bank that it outside the ordinary amortisation or repayment basis.
If you have any questions, please contact Bjorn Triplow, 027 239 6367, bjorn@opuha.co.nz.