The Commerce Commission is inviting submissions from interested parties

prior to releasing its final determination on the Electricity Governance

Board's (EGB) authorisation application.

Under section 58 of the Commerce Act, EGB applied to the Commission in

December 2001 for an authorisation of an arrangement that provides the

basis for the trading and delivery of electricity.

Commission Chair John Belgrave said the Commission has considered all

aspects of the EGB application and has reached conclusions on many of

the issues. However, the Commission has now given interested parties

two weeks to provide comment on conditions it may impose on an

authorisation.

Section 61(2) of the Commerce Act 1986 allows the Commission to place

certain conditions on an authorisation and to limit the period of the

authorisation.

In other work within the electricity sector, the Commission will release

its discussion paper reviewing asset valuation methodologies within the

next two months. The Commission has received a number of submissions on

its issues paper (released in March), and has also received feedback on

a draft of the discussion paper following a peer review process. This

work on regulation of electricity lines companies is pursuant to Part 4A

of the Commerce Act 1986.

Background

The Commerce Act 1986, section 61(2): Determination of applications for

authorisation of restrictive trade practices -

(2) Any authorisations granted pursuant to section 58 of

this Act may be granted subject to such conditions not inconsistent with

this Act and for such period as the Commission thinks fit.

The Commerce Act prohibits competitors' agreeing to work together in a

way that reduces competition between them. However, the Act does allow

for authorisation of potentially anti-competitive business practices if

the public benefit is greater than the detriment to competition.

Media contact: Jackie Maitland, Communications Manager

Phone work (04) 924 3708, mobile 029 924 3708