New Zealand Gazette – 2006 – No. 94

Page 2760

✨ Commerce Act Notice



2760

NEW ZEALAND GAZETTE, No. 94

9 AUGUST 2006

COMMERCE ACT (INTENTION TO DECLARE CONTROL: VECTOR LIMITED) NOTICE 2006

Part 4A of the Commerce Act 1986 (the Act) came into effect on 8 August 2001 and, among other things, requires the Commerce Commission (“Commission”) to implement a targeted control regime for the regulation of large electricity lines businesses (lines businesses)—namely electricity distribution businesses (distribution businesses) and Transpower New Zealand Limited.

The targeted control regime

The purpose of subpart 1 of Part 4A is to promote the efficient operation of markets directly related to electricity distribution and transmission services through targeted control for the long-term benefit of consumers by ensuring that suppliers—

(a) are limited in their ability to extract excessive profits; and

(b) face strong incentives to improve efficiency and provide services at a quality that reflects consumer demands; and

(c) share the benefits of efficiency gains with consumers, including through lower prices.

As part of the targeted control regime, the Commission must set thresholds for the declaration of control in relation to lines businesses, assess those businesses against the thresholds it has set, identify any business that breaches the thresholds, and determine whether or not to make a declaration of control in relation to all or any of the goods or services supplied by a lines business identified as having breached a threshold.

The thresholds are effectively a screening mechanism for the Commission to identify lines businesses whose performance may warrant further examination and, if necessary, control.

On 6 June 2003, after consulting with interested parties as to possible thresholds, the Commission set two thresholds—a CPI-X price path threshold and a quality threshold—applicable until 31 March 2004 for distribution businesses. These initial thresholds were set by the Commerce Act (Electricity Lines Thresholds) Notice 2003 published as a Supplement to the New Zealand Gazette, 6 June 2003, No. 62, page 1685.

The Commission reset the thresholds for all distribution businesses for a five-year regulatory period from 1 April 2004. These reset thresholds were set by the Commerce Act (Electricity Distribution Thresholds) Notice 2004 published as a Supplement to the New Zealand Gazette, 31 March 2004, No. 37, page 927.

Before making a declaration of control, the Commission is required under section 57I to:

  • publish its intention to make a declaration and invite interested persons to give their views on the matter; and

  • give a reasonable opportunity to interested persons to give those views; and

  • have regard to those views.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 94


Gazette.govt.nz — PDF NZ Gazette 2006, No 94




✨ LLM interpretation of page content

🏭 Commerce Act (Intention to Declare Control: Vector Limited) Notice 2006

🏭 Trade, Customs & Industry
Commerce Act, Electricity Distribution, Control Declaration, Vector Limited, Regulatory Framework