The Commerce Commission today released its revised draft input methodologies determination for Transpower for technical consultation. This is expected to be the last consultation step before the input methodologies for Transpower are finalised.

The draft decisions for the input methodologies were consulted on from June to September 2010. A consultation update paper outlining the key changes to the draft input methodologies determination for Transpower is being released with the revised draft determination.

The Commission is seeking submissions on whether the revised draft determination gives effect to the updated draft decisions. Submissions on the revised draft determinations are due by 5pm on Friday 26 November 2010. Once the Commission has considered submissions on the revised draft determination, it will finalise the input methodologies by 31 December 2010.

The revised draft input methodologies determination for Transpower, along with the consultation update paper, can be accessed on the Commission's website at http://www.comcom.govt.nz/transpower-input-methodologies/

 Background

Transpower is currently regulated by the Commerce Commission under Part 4 of the Commerce Act by way of an administrative settlement entered into on 13 May 2008. The administrative settlement regulates Transpower's revenues until 30 June 2011. The Commission must, under Part 4, determine a price-quality path that will apply to Transpower to take effect once the settlement expires.

The purpose of input methodologies is to promote certainty for suppliers and consumers in relation to the rules, requirements and processes applying to the regulation, or proposed regulation, of goods or services under Part 4 of the Commerce Act 1986.

Draft decisions for input methodologies for Transpower were released for consultation on 24 June 2010 and 5 July 2010. Since then, the Commission has:

  • considered all submissions and cross submissions received on its draft input methodologies for Transpower; and
  • revised its draft input methodologies determination for Transpower.

The Commission released its draft individual price-quality path determination for Transpower for technical consultation on 9 November 2010.   The Commission has also released some minor revisions to that draft individual price-quality path determination along with the revised draft input methodologies determination issued today.