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 Commission’s decisions.
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.

© Scoop Media