We are currently reviewing the rules and processes that underpin the Commission’s regulation of electricity lines services, gas pipeline services, and specified airport services.
As part of our process of setting the default price-quality path (DPP) for electricity distribution businesses from 1 April 2020, we have amended our input methodologies for electricity distribution services necessary to implement this DPP and future price-quality paths.
We have amended our input methodologies to take account of recent changes to lease accounting (IFRS 16) introduced by the International Accounting Standards Board.
As part of our process of setting Transpower’s individual price-quality path (IPP) from 1 April 2020, we may consider amendments to the input methodologies (IM) necessary for implementing this IPP and future price-quality paths.
The Transpower capital expenditure IM (capex IM) was set in January 2012 and has two major functions. These are to provide for the scrutiny of Transpower's proposed and actual investment, and to incentivise Transpower to deliver those investments effectively.
The CPP requirements topic considered cost and complexity improvements to the CPP requirements, and whether any further changes were required to improve how default price-quality paths and customised price-quality paths work together as the two components of the default/customised price-quality regime.
The input methodologies (IMs) were first determined in December 2010 for specified airport services, electricity distribution and transmission, and gas pipelines. We are required to review the IMs every 7 years. We completed our review in December 2016.
