Suppliers of electricity distribution services are subject to the regulatory provisions under subpart 9 of Part 4 of the Commerce Act 1986 (the Act). Subpart 9 provides that electricity distribution businesses (EDBs), as suppliers of electricity lines services, are subject to default/customised price-quality regulation and information disclosure. EDBs that meet the consumer ownership criteria under section 54D of the Act, however, are subject to information disclosure regulation only.
The Commission made its input methodologies determination for EDBs on 22 December 2010 and published the determination in the New Zealand Gazette on 20 January 2011. The input methodologies determination for EDBs includes input methodologies that apply to default/customised price-quality regulation and input methodologies that apply to information disclosure regulation.
The determination includes input methodologies for asset valuation, cost allocation, regulatory tax treatment, the cost of capital, regulatory rules and processes, and matters relating to customised price-quality path proposals.
The Commission must review each input methodology no later than 7 years after its date of publication and, after that, at intervals of no more than 7 years.
On this page you will find the EDBs input methodologies determination and the associated Reasons Paper located in Supporting Documents under the heading Input Methodologies for Electricity Distribution Services. Documents relating to consultation undertaken by the Commission in making the EDBs input methodologies determination can be located under Consultation Prior to December 2010.
On 8 March 2011 the Commission published a memorandum on its process for considering requests for amendments or clarifications of the Part 4 determinations it made in December 2010. This process document along with a summary of requests for amendments or clarifications and the Commission's responses can be found below under Requests for amendments or clarifications. The full requests relating to the EDBs input methodologies determination and the Commission's responses can also be found below.
Cost of capital
Determinations of the cost of capital in accordance with the input methodologies determination are published on the Cost of capital page.