The Commerce Commission today released for technical consultation its draft individual price-quality path determination in respect of electricity lines services supplied by Transpower.  This is expected to be the last consultation step before the individual price-quality path applying to Transpower is finalised in December 2010.

The draft decisions for the individual price-quality path were consulted on from June to September 2010. A consultation update paper outlining the key changes to the draft decisions is being released with the draft determination.

The Commission is seeking submissions on whether the draft determination gives effect to the updated draft decisions. Submissions are due by 5pm on Friday 26 November 2010. Once the Commission has fully considered the submissions, it will make its individual price-quality path determination by 31 December 2010.

The Commission will also shortly release for further consultation its revised draft determination on the input methodologies that will apply to Transpower, as well as a consultation update paper outlining the key changes to that draft determination. The individual price-quality path and input methodologies consultation processes will run in parallel.

The draft individual price-quality path determination for electricity lines services supplied by Transpower, along with the consultation update paper, can be accessed on the Commission's website at www.comcom.govt.nz/developing-new-price-quality-regulation-to-apply-to-transpower

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.

 

Draft decisions in respect of the individual price-quality path for Transpower were released for consultation in June 2010. Since then, the Commission has:

  • on 26 August 2010, released an update on the process to determine the individual price-quality path for Transpower;
  • considered all submissions and cross submissions received on the draft individual price-quality path and input methodologies to apply to Transpower; and
  • prepared its draft individual price-quality path determination.

 

The Commission anticipates making its final determinations in relation to Transpower by 31 December 2010.