The Commerce Commission has released an indicative timetable for Transpower New Zealand Limited's new application for authorisation of the agreement relating to the security of the national electricity grid.

Commission Acting Chairman Mark Berry said that Transpower withdrew an earlier application. The current application is concerned with proposed arrangements which are similar to those in the earlier application, although there are changes in the means by which decisions on grid security are made.

The arrangements amount to price fixing under the Commerce Act because they involve generators and other major participants in the electricity sector getting together to agree on how the costs of maintaining the quality of electricity supply from the national grid are allocated to each other. The arrangements may also have the potential to exclude some competitors if they are not willing to pay the costs for particular services.

Both price fixing and arrangements among competitors that prevent a rival acquiring services are prohibited by the Commerce Act.

However, the Act also allows an otherwise prohibited anti-competitive business practice to be authorised if the Commission is satisfied that public benefits from the practice outweigh detriments from loss of competition. An authorisation, if granted, protects the business practice from court action under the Act.

Commission's indicative timetable:

June 16 initial comments from interested parties

June 30 issue draft determination

July 14 interested parties' submissions on draft determination

July 28-30 conference, if required

July 30 final decision if conference is not required

August 13 final decision if conference is required

Media contact: Commerce Act Manager Geoff Thorn

Phone work (04) 498 0958

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz