Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Gas form of control discussion document released


Gas form of control discussion document released

The Commerce Commission has released its proposals for the form of control to be imposed on the gas distribution services of Powerco and Vector.

The discussion paper provides a comprehensive review of the issues that the Commission considers are relevant to determining the final form of control. At present control is administered by way of a Provisional Authorisation.

Submissions are invited from all interested parties, including economists and lawyers working in the regulatory area, and major gas consumers.

The Commission has considered the following broad forms of control to determine the appropriate form of control for the Authorisation:

 rate of return regulation;
 total revenue cap;
 average revenue cap;
 weighted average price cap;
 disaggregated price cap; and
 sliding scale regulation.

The Commission’s preliminary view is that the weighted average price cap is the preferred form of control for standard consumers. For the non-standard customers and metering services the total revenue cap is the preferred form of control.

A table in the background section of this media release is a summary of the proposed control terms for the three types of control groups.

The discussion paper poses specific questions in relation to the Commission’s proposals, and the Commission also welcomes wider comments. Questions posed by the discussion paper include:

 Are there any other options for the form of control that the Commission should be considering?
 Are there issues with a five year initial control period of the Authorisation, starting on 25 August 2005?
 Are there issues with using financial incentives to regulate quality?

Submissions on this discussion paper are due by 7 August.

A conference on the form of control is now planned for 5 and 6 September. The conference allows key interested parties to present their submissions to the Commission. The submissions, conference, and cross submissions will inform the Commission’s decisions. The Commission’s draft decisions will be presented for further consultation in early 2007.

The document’s full title is Authorisation for the Control of Supply of Natural Gas Distribution Services by Vector Ltd and Powerco Ltd Form of Control - Discussion Paper.

It can be found on the Commission’s website www.comcom.govt.nz under Regulatory Control Enquiries / Regulated Gas Control.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>