Commerce Commission takes over responsibility for grid upgrade plan approval
Published01 Nov 2010
From 1 November 2010 the Commerce Commission assumes responsibility for requesting or approving electricity grid upgrade plan proposals by Transpower New Zealand Limited.
From 1 November 2010 the Commerce Commission assumes responsibility for requesting or approving electricity grid upgrade plan proposals by Transpower New Zealand Limited. Previously approval of grid upgrade plans was part of the Electricity Commission's role. This transfer of roles is required under the Electricity Industry Act, which was passed in October 2010, and resulted from the 2009 Ministerial review of the sector.
Transpower uses grid upgrade plans to seek regulatory approval for investment proposals to upgrade the high-voltage transmission network, or national grid.
For the 12 months from 1 November 2010 the Commerce Commission will use the existing electricity governance rules and grid investment test to request or approve Transpower's grid upgrade plan proposals. During this time, the Commerce Commission will also develop a capital expenditure input methodology to assess and approve Transpower's capital expenditure proposals. This input methodology is to be determined no later than 1 November 2011. The Minister of Commerce can extend this deadline once by up to three months at the written request of the Commission.
The Commerce Commission has been working with the Ministry of Economic Development, the Electricity Commission, the Electricity Authority Establishment Board and Transpower to ensure that there is a smooth transfer of responsibilities and no interruption to Transpower's grid upgrade planning processes.
The Commerce Commission will be working with Transpower on an ongoing basis to ensure the efficient assessment of Transpower grid upgrade plan proposals.
In December 2009 Cabinet agreed to a number of changes to the governance of the electricity sector. These changes include disestablishing the Electricity Commission and spreading its functions among existing agencies and the new Electricity Authority.
The changes to the governance of the electricity sector are set out in the Electricity Industry Act 2010.
