✨ Commerce Act Notice Schedule
27 JUNE 2008 NEW ZEALAND GAZETTE, No. 106 2814
SCHEDULE 2
MATTERS RELATING TO NON-PART F CAPEX
Part 1 Criteria for Non-Part F Capex
1 Introduction
(1) In order to assist with ensuring compliance with the transmission (non-Part F capex) threshold, Transpower is, to the extent practicable, to record whether individual expenditure incurred for the purposes of providing specified services is non-Part F capex, directly in Transpower’s project planning system.
(2) Expenditure falling into the following categories is to be treated as non-Part F capex:
(a) asset replacement;
(b) asset refurbishment;
(c) asset enhancement & development (non-Part F);
(d) operational network information and technology services (IT).
(3) Expenditure is not to be treated as non-Part F capex if it is the result of an insurance event for which insurance income has been recovered, or is reasonably anticipated by Transpower to be so recovered.
(4) To the extent practicable, Transpower is to use the criteria described below to determine whether expenditure is to be treated as non-Part F capex.
2 Asset replacement
The key criterion which determines inclusion in this asset replacement category, is that the expenditure is to replace an existing asset where the primary driver is replacement due to the condition of the asset or performance issues (including replacement due to obsolescence). This is essentially replacement with the modern equivalent of the existing asset. Any incidental increase in performance (for example, the minimum conductor size available to mitigate noise issues being larger than that used when the asset was originally installed) is still considered to be replacement.
3 Asset refurbishment
Refurbishments are classified as capital works if the work extends the life of the asset. Examples include painting of buildings and towers; bus and structure refurbishment; renewal of switchyard gravel; reseal of access roads; current transformer and disconnector refurbishment; transmission line refurbishment; and grillage foundation refurbishment.
4 Asset development and enhancement (Non-Part F)
(1) Asset development and enhancement expenditure which is to be categorised as non-Part F capex if it relates to work required on an existing asset, or investment in a new asset, in order to—
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NZ Gazette 2008, No 106
✨ LLM interpretation of page content
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Commerce Act (Transpower Thresholds) Notice 2008 Schedule
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🏭 Trade, Customs & Industry27 June 2008
Commerce Act, Transpower, Thresholds, Schedule, Non-Part F Capex, Asset Management, Criteria