✨ Commerce Act Notice
NEW ZEALAND GAZETTE, No. 105
25 JUNE 2008
COMMERCE ACT (DECISION NOT TO DECLARE CONTROL: TRANSPOWER NEW ZEALAND LIMITED) NOTICE 2008
Part 4A of the Commerce Act 1986 ("the Act") came into effect on 8 August 2001 and, among other things, requires the 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
Section 57E of the Act provides that the purpose of subpart 1 of Part 4A of the Act 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.
Under section 57G(1)(b) of the Act, the Commission must set thresholds for the declaration of control in relation to lines businesses.
The process for making decisions on declarations of control is set out in section 57H of the Act, which provides that the Commission must:
(a) assess large electricity lines businesses against the thresholds set under this subpart; and
(b) identify any large electricity lines business that breaches the thresholds; and
(c) determine whether or not to declare all or any of the goods or services supplied by all or any of the identified large electricity lines businesses be controlled, taking into account the purpose of this subpart; and
(d) in respect of each identified large electricity lines business,—
(i) make a control declaration; or
(ii) publish the reasons for not making a control declaration in the Gazette, on the Internet, and in any other manner (if any) that the Commission considers appropriate.
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 30 June 2004 for Transpower. 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 Transpower for a one-year regulatory period from 1 July 2004 to 30 June 2005. These reset thresholds were set by the Commerce Act (Transpower Thresholds) Notice 2004 published as a Supplement to the New Zealand Gazette, 30 June 2004, No. 81, page 2019.
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NZ Gazette 2008, No 103
✨ LLM interpretation of page content
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Decision not to declare control of Transpower New Zealand Limited
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