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

 


Com Com welcomes Supreme Court ruling on input methodologies

Commission welcomes Supreme Court ruling on input methodologies

The Commerce Commission welcomes a Supreme Court decision today confirming that the Commission is not required to determine a starting price input methodology for electricity distribution and gas pipeline services. This confirms the decision by the Court of Appeal in June 2012.

"Today’s ruling finally allows the Commission to complete aspects of the regulatory regime which will promote the certainty that the legislation anticipated,” said Commerce Commission Chair Dr Mark Berry.

As a consequence of the Supreme Court’s decision the Commission can now complete the reset of the default price-quality paths for both electricity distribution and gas pipeline businesses. The final report on the reset of electricity default price-quality paths is scheduled for 30 November, 2012, and the Commission’s final decision on the default price-quality path for gas pipeline businesses is scheduled for release in February 2013.

"The judicial reviews the Commission has faced in relation to input methodologies have significantly delayed the implementation of the Part 4 regime. This has had the effect of allowing some businesses to continue to charge their customers too much. And some businesses which we believe should be able to charge more in order to invest in their networks have not been able to increase prices," Dr Berry said.

“We look forward to being able to now implement the regime as Parliament intended.”

You can see a copy of the Supreme Court judgment at http://www.comcom.govt.nz/input-methodologies-2/

Background
Input methodologies involve setting upfront regulatory rules, processes and requirements that apply to the regulatory instruments under Part 4 of the Commerce Act. Input methodologies were determined by the Commission in December 2010 and can be viewed on the Commission's website at http://www.comcom.govt.nz/input-methodologies-2/

Part 4 of the Commerce Act regulates suppliers of electricity lines services, gas pipeline services and specified airport services supplied by Auckland, Wellington and Christchurch airports.

Default Price-quality Path (DPP) limits the amount a business can charge for regulated services by setting a maximum price cap or revenue cap, while maintaining certain minimum quality standards. Various electricity distribution companies and gas pipeline businesses are subject to this type of price-quality regulation under Part 4 of the Commerce Act.

Litigation timeline
In June 2012 the Court of Appeal overturned a decision by the High Court which had been issued in September 2011. The High Court decision arose from an application for judicial review by Vector Limited of the Commission's decision not to determine an input methodology for starting prices.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news