Commerce Commission releases new information disclosure requirements for electricity and gas businesses
Published01 Oct 2012
The Commerce Commission has today released new information disclosure requirements for suppliers of electricity distribution services and gas pipeline services. Under the new requirements, regulated businesses will publicly disclose information about investment and innovation, financial performance, pricing and network management.
The Commerce Commission has today released new information disclosure requirements for suppliers of electricity distribution services and gas pipeline services. Under the new requirements, regulated businesses will publicly disclose information about investment and innovation, financial performance, pricing and network management.
The purpose of information disclosure under Part 4 of the Commerce Act is to ensure that interested persons, including the Commission, have sufficient information available to assess if the purpose of Part 4 is being met. The purpose of Part 4 is to promote the long-term benefit of consumers in markets where there is little or no competition.
“The new requirements mean that people will have access to a comprehensive suite of information about how these businesses are performing,” said Sue Begg, Commerce Commission Deputy Chair.
“Information disclosure is particularly important for the 12 electricity distribution businesses that are not subject to price-quality regulation. They are exempt from other forms of regulation as they are consumer-owned businesses,” said Ms Begg.
“Gas pipeline businesses will be subject to information requirements under Part 4 of the Commerce Act for the first time. One significant development is that they will be required to disclose asset management plans.”
“We have fully consulted with the regulated businesses about the changes to information disclosure to ensure that they are able to provide the information necessary for the new requirements,” said Ms Begg.
Electricity distribution and gas pipeline businesses must make their first annual disclosures under the new requirements in 2013.
The three determinations and accompanying reasons paper are available on the Commission’s website at:
Which businesses are subject to information disclosure regulation?
These requirements apply to the 29 electricity distribution businesses supplying electricity lines services across New Zealand, and to suppliers of gas pipeline services.
Suppliers of gas pipeline services under the Act include: the two businesses supplying gas transmission services in New Zealand, Maui Development Limited, and Vector Limited; and the distribution businesses of Powerco Limited, GasNet Limited and Vector Limited.
Part 4 of the Act also provides for information disclosure regulation to be applied to Transpower, and to international airports at Auckland, Wellington, and Christchurch. The requirements released today do not include Transpower, the owner and operator of the national electricity transmission grid. We have started consultation on information disclosure requirements for Transpower. Information disclosure requirements for airports were determined in December 2010.
What are the key changes to the existing requirements?
The requirements released today replace existing information disclosure requirements under the Commerce Act for electricity distribution businesses and under the Gas (Information Disclosure) Regulations (1997) for gas pipeline businesses. The existing gas information disclosure requirements are currently administered by the Ministry of Business, Innovation and Employment.
The new information disclosure requirements will include improved information on network management, assets, expenditure, prices, and quality. Information is generally required to be provided in a more disaggregated form than under previous information disclosure requirements. This is a more significant change for gas pipeline businesses in particular, who for the first time are required to provide information on how they manage their networks, including the disclosure of asset management plans.
We are also making it easier for interested persons to analyse the data provided by the regulated businesses by having quantitative information presented in standardised reports.
