Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

CC releases decision on self-governance rulebook


Commerce Commission releases full decision on self-governance rulebook for electricity industry

The Commerce Commission today released its written reasons to authorise a set of arrangements in the form of a rulebook for the self-governance of the electricity sector, as announced last month.

If adopted, the rulebook would supersede existing arrangements for the wholesale market, grid security, metering and reconciliation, and would also incorporate arrangements for agreeing transmission prices, services and investment levels.

In its authorisation, the Commission assessed the proposed set of arrangements against the most likely alternative, which included a greater direct government involvement in the governance arrangements.

The Commission determined that the proposed set of arrangements would be likely to give rise to public benefits from higher quality decision making, lower lobbying costs, and the avoidance of over-investment in transmission, but that detriments would arise from the potential for pro-competitive rules being blocked or delayed, and from the risk of under-investment in transmission. The Commission also concluded that one element, pricing to non-members, involved price-fixing and that the arrangements as a whole lessened competition in electricity related markets.

The Commission considered that the risk of these detriments was significantly lessened by the imposition of certain conditions on the decision, and by limiting the period of authorisation.

Commission Chair John Belgrave said "the Commission is satisfied that with the conditions and limited period of authorisation, the benefits would outweigh the detriments."

Conditions of the authorisation The Commission has applied four conditions to its authorisation. These are: * changes to the governance arrangements to ensure that pro-competitive and public benefit enhancing rule changes are not delayed unduly in working groups; * changes to the governance arrangements to allow the EGB discretion to over-ride an industry vote opposing a pro-competitive and public benefit enhancing rule change; * the completion of the drafting of rules dealing with consumer issues; and * a review of the efficacy of the part of the rulebook dealing with transmission services after two years. The authorisation will expire four years from the date of the implementation of the rulebook, or on 31 March 2007, whichever is the earlier.

The Commission's full decision will shortly be available on its website at http://www.comcom.govt.nz/adjudication/egbl_s58.cfm

Background The Commission assessed the net present value of the benefits to be in the order of $38 million to $74 million and the detriments, in the absence of the conditions, to be in the order of $46 million to $92 million.

The Electricity Governance Board Limited (EGB) initially applied for the authorisation, under section 58 of the Commerce Act, in December 2001, and subsequently submitted a revised application in February 2002.

The proposed rulebook was developed by the industry following the release of the Government Policy Statement (GPS) in December 2000. The GPS sets out the Government's expectations for industry action and its views on governance matters.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>

 

Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>

ALSO:

Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election