✨ Commerce Commission Decision
1418 NEW ZEALAND GAZETTE, No. 54 18 MAY 2007
Decision not to declare control
The Commission has had regard to all views expressed by interested parties at the conference and in written submissions, in relation to this matter.
The Commission has determined not to make a declaration of control under Part 4A in respect of electricity distribution services supplied by Unison, for the following reasons.
• The Commission has the ability to enter into an administrative settlement with a business that has breached the thresholds in order to further the objectives of the targeted control regime in Part 4A of the Act.
• Unison’s Proposal involves the company voluntarily reducing its average prices from 1 December 2006 to comply with the price path threshold set by the Commission on 31 March 2004 for a five-year regulatory period from 1 April 2004 to 31 March 2009. Unison’s Proposal also involves rebalancing its line charges to different regions and customer groups, so that the prices paid by consumers better reflect the costs of supplying them.
• Having evaluated Unison’s Proposal and taken into account the views of interested parties, the Commission considers that the likely outcomes associated with the implementation of Unison’s Proposal are consistent with the purpose in section 57E of the Act. Therefore a declaration of control in respect of Unison’s electricity distribution services is not necessary to ensure the objectives of the targeted control regime are achieved.
• In accordance with the Proposal, Unison has already implemented price changes on 1 December 2006 and 1 April 2007 which rebalance tariffs between regions and customer groups.
• Unison has formally recorded its Proposal in a deed, which has been signed and executed by Unison and the Commission.
A more comprehensive explanation of the reasons for the Commission’s decision not to declare control of Unison is contained in the paper titled Commerce Commission, Regulation of Electricity Lines Businesses, Targeted Control Regime, Reasons for Not Declaring Control, Unison Networks Limited dated 11 May 2007. A copy of this paper can be located on the Commission’s website: www.comcom.govt.nz.
Any comments and questions on this notice may be sent by email to: electricity@comcom.govt.nz; or by mail to Network Performance Branch, Commerce Commission, P.O. Box 2351, Wellington; or by facsimile (04) 924 3700.
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VUW Te Waharoa —
NZ Gazette 2007, No 54
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NZ Gazette 2007, No 54
✨ LLM interpretation of page content
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Decision Not to Declare Control: Unison Networks Limited
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🏭 Trade, Customs & IndustryCommerce Act, Decision, Control, Unison Networks Limited, Electricity Lines Businesses, Thresholds