The Commerce Commission will hold a three-day conference starting this week in relation to the review of the information disclosure regime and draft decisions on implementing valuation choice for system fixed assets of electricity lines businesses. The review and draft decisions are part of the Commission's work on the regulation of lines businesses under Part 4A of the Commerce Act.

The Commission issued two relevant consultation documents on 24 December 2004, and invited interested parties to make written submissions on those documents. The two documents are entitled: Review of the Information Disclosure Regime, Discussion Paper; and Implementing Valuation Choice for System Fixed Assets, Draft Decisions and Discussion Paper.

The conference provides an opportunity for interested parties to present their submissions orally and for the Commission to ask questions based on those submissions.

The conference will be held on Thursday 17 March, Friday 18 March, and Monday 21 March 2005 in the Commission's ground floor conference room located in the NGC Building, 44-52 The Terrace, Wellington. A copy of the conference programme is attached.

The Commission received a number of submissions from interested parties. All submissions and the relevant consultation documents issued by the Commission can be found by accessing the Commission's website www.comcom.govt.nz.

Background

Part 4A of the Commerce Act 1986 establishes a regulatory regime for large electricity lines businesses. Under subpart 3 of Part 4A, the Commerce Commission must develop an information disclosure regime requiring lines businesses (large line owners and large electricity distributors) to disclose information concerning their business.

The purpose of subpart 3 of Part 4A is to promote the efficient operation of markets directly related to electricity distribution and transmission services by ensuring that large line owners and large electricity distributors make publicly available reliable and timely information about the operation and behaviour of those businesses, so that a wide range of people are informed about such factors as profits, costs, asset values, price (including terms and conditions of supply), quality, security, and reliability of supply of those businesses.

In March 2004, the Commission issued the Electricity Information Disclosure Requirements 2004 (the Disclosure Requirements) pursuant to subpart 3 of Part 4A. The Disclosure Requirements largely replicate the now-revoked Electricity (Information Disclosure) Regulations 1999 (the Disclosure Regulations), administered by the Ministry of Economic Development pursuant to the Electricity Act 1992. Such an approach was taken by the Commission because the scope of information disclosure provided for under subpart 3 is similar to that under the Disclosure Regulations. However, in light of the different statutory purpose under subpart 3 for the information disclosure regime, the Commission considers it appropriate to undertake a full consultative review of the Disclosure Requirements, beginning from first principles.