Disclosure and Asset Valuation Choice Conference
Issued 15 March 2004-05 / 101
Electricity Lines Businesses: Information Disclosure and Asset Valuation Choice Conference
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.
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.
Information Disclosure and Asset Valuation Choice Conference Programme
TIME PARTY GIVING SUBMISSION
Thursday 17 March 2005
9.00am – 9.15am Opening remarks by the Chair
9.15am – 10.30am Transpower NZ
Break: 10.30am – 10.45am
10.45am – 12.30pm Unison Networks
Break: 12.30pm – 2.15pm
2.15pm – 3.15pm Genesis Energy
Break: 3.15pm – 3.30pm
3.30pm – 4.30pm WEL Networks
4.30pm – 5.30pm Electricity Networks Association
Friday 18 March 2005
9.00am – 10.00am Marlborough Lines
Break: 10.00am – 10.15am
10.15am – 12.00pm PricewaterhouseCoopers on behalf of 21 Lines Businesses
Break: 12.00pm – 1.00pm
1.00pm – 3.00pm Vector Networks
Break: 3.00pm – 3.15pm
3.15pm – 4.00pm Vector Networks
4.00pm – 5.00pm Jardine Lloyd Thompson
Monday 21 March 2005
10.00am – 11.00am Orion NZ
Break: 11.00am – 11.15am
11.15am – 12.30pm Orion NZ
Break: 12.30pm – 1.30pm
1.30pm – 2.00pm The Lines Company
2.00pm – 3.15pm Powerco
Break: 3.15pm – 3.30pm
3.30pm – 5.00pm Powerco
5.00pm – 5.15pm Closing Remarks by the Chair