Electricity Lines Businesses
Electricity Lines Businesses:
Commission releases thresholds decision paper
The Commerce Commission today released a decision paper on the thresholds to apply as part of its regulatory regime for electricity lines businesses, as well as a draft Gazette notice that will be used to formally set the thresholds.
This work is required under
Part 4A of the Commerce Act. The Commission has decided to
adopt a price path threshold and a quality threshold.
Today’s paper formalises the decisions announced by the
Commission on 31 March 2003
(Media Release: Electricity lines businesses: Commission decides on thresholds (2003-03/132)).
§ The paper also provides additional
detail on how the thresholds will apply. Interested parties
are invited to comment on the draft Gazette notice by 16 May
2003. Comments are to be limited to technical drafting
points to ensure the notice gives best effect to the
Today’s decision paper also provides information on: the process the Commission will follow for resetting the price path threshold, and related issues.
§ This information has been provided to assist interested parties in advancing their own work to input to the Commission’s process.
§ The Commission will reset the price path threshold to apply from 1 April 2004; and the process the Commission will follow for developing the detail of the investigation and control parts of the regulatory regime, including its views on WACC and asset valuation.
The development of this detail is necessary for the implementation of those parts of the regime (if required), as well as to give guidance to electricity lines businesses on what consequences might follow a breach of the thresholds.